Evening star., 1922-11-04
STUDEbAKER PRICE
BOOST IS SURPRISE
Other Big Auto Firms Not
Likely to Raise Charges,
View in Motor World.
BY j. G. RoYLE.
Special Dispatch to The Star.

special Dlspatcn 10 Tne star.
NEW YORK. November 4.-The au-
tomobile industry is less concerned
today over the revision of prices for
cars now being turned out of the fac
tories than in the development of
new models and refinements for 1923
which will place price revisions on a
new and less important basis.
Engineers are working behind
closed doors on experiments with
new models. New engines are being
designed and in some cases trials are
being given accessories which are
admitted to be radical departures
from present equipment.
Next year looms large as one of
deadly competition and executives
are driving their engineers to bring
forth the last word in more effective
about the price at which the products
will be sold.
Price Jump Big Surprise.
Many of the changes will not be
visible to the layman. but experts
will testify as to the results of this
work. They are going to make the
automobile vastly more dependable
than ever. One of the General Mo-
tors Corporations subsidiaries is pre-
pal ms " ihStdll d DodTAnS, IOr In
stance, which after twenty four
hours test at $500 revolutions per
minute. showed no heat This is a
sample Of the lengths to which man
ufacturers are going to improve their
products.
The increase in the prices of stude-
baker big six line Of cars, however.
took the automobile industry in gen,
eral somewhat by surprise, although
statements by other makers of simi-
lar grade Of cars, reported exclusively
in these columns. predicted such an
ADVANCE at the time Ford cut prices
$50 on his models.
General Increase Unlikely.
Many executives of automobile fac
tories in Detroit and other centers
declared today that while raw ma
terlal prices were rising and that any
car which had been priced too low
for competitive purposes, in view of
this trend, must raise its figures, they
d1d not expect the advance to become
general. One of the most experienced
executives In the business said: stu
debaker Is probably solving a problem
that Is individual to that COMPANY. I
do not think the action Of the Stude-
baker corporation means a general
increase all along the line"
Whatever consideration dictated the
actlon, there is no pessimism in South
Bend, the home of the Studebaker
cars. Ihere Is no unemployment, no
tivitles of the city are going ahead
with astonishing rapidity Between
now and next spring there will he
employment for $500 more men at
the Studebaker plant.
Plant Additions Nearly Done.
New additions to the factories of
tne company which will cost $4,000
900 are nearing completion. In some
OF them operations have started be-
Is the demand for working space in
the Studebaker plant Upon comple-
t1on the company can turn out 500
cars day, or at the rate of $50. 900
cars for 1928.
Prices for rugs and carpets have
been advanced at least 10 per cent by
Leading makers In the last few days.
This reflects not only the additional
cost OF carpet -weols, but the un-
precedented demand for house fur
nishings which exists all over the
country as result of record-break-
ing home building operations.
TextAe MANUFACTURERS. both in the
to capacity as result of domestic
demands. and foreign buying is in
creasing steadily. The obtaining of
sufficient stocks of raw materials is
becoming an acute problem to these
manufacturers. -
Business I'm Other Lines,
Furniture dealers and manufac-
turers reported the best dollar turn
over in their lines in the last thirty
days of any similar period since 1914.
Flour mills are active everywhere,
with advances in the fini shed product,
due to the difficulty Of obtaining mill
ing grades of hard wheat. Improve
ment in grain prices has helped retail
and wholesale merchandising in every
agricultural section.
(Copyrisht, 1927