Evening star., 1922-09-19
BY J. c. ROYLE.
Special Correspondent Of The Star.

Copyright, 1871
NEW YORK. September 19.-Except
for CONSERVATION in the ranks Of his
cwn employees, the Immediate effects
OF the shutdown Of the Ford facto-
ries has been pretty well discounted
in business circles. But the possible
aty that Ford may raid the ranks OF
another industry and make his own
steel has not been discounted. ac-
cording to dispatches received within
twelve hours from Detroit and other
automobile centers. and from eX-
prassions made today by steel manu-
3acturers here.
Well informed business men in va
rious locau1ss insisted today that
the motive back of the Ford smut
down was the disciplining or the
United States Steel Company and
other steel manufacturers. They as
cert that the 20 per cent advance IN
wages by the leading steel interest
end settlement of the coal strike IN
such a. manner as to prevent lower
coal prices completely upset the Foro
calculations.
yhwarted by Cost Of Coal and Steel.
They contend that Ford needs to
maintain q fairly wide price adVan-
taEe in favor Of the Ford car in COM
peting with other makes of relatively
low price range and that the fncreas-
ing costs of coal and steel nave
thwarted lowering of Ford prices to
meet cuts of other manufacturers
without losing part of his usual
profits.
steel men pointed out that Ford has
a reputation for stubbornness; that
his company has assets of S4O9,S2O, lo2
and no liabilities except taxes; that
~ hoo 1,trh "a
taxes Indefinitely if he never turns
another wheel in his shops, and that
81 he has his mind made up to make
steel and the mines come to his terms,
there is decided danger of new
competitor In the steel buSlnss
In this connection it was recalled by
automobile men that a proposed wage
increase by Ford over two years ago
vas vigorously opposed by leadlns
steel interests, who regarded with
anxiety the effect of such a move on
their own workmen.
Many business men in Detroit, how
ever. maintained today that the Ford
shutdown far more likely had for its
object the rearranging of his manu-
featuring system and that another
thrill would be in store for the indus
trial world when work Is resumed.
No Absorption Of Ford Workers.
1t is not considered likely in De-
troit that other automobile plants
~ill absorb many Ford employees
Those plants are working on the
regular tapering fall schedule, which
works for reduction Of i,, forces ,.,, rather fns
YAopenins Of the Ford plants in pros
ct, the other companies are not
uoh interested in hiring men unlike
Gy to be permanent employees.
Quite a number OF Ford workmen
undoubtedly will seek temporary
work elsewhere. The mines in the
upper peninsula of Michigan, which
have been woefully short of help
for some time, have sent word thar
as many Of Ford's men as want to
como can find work in the mines, with
free water and light and house rents
ranging from 81 to Sc month. The
majority of the workers, however,
will Sit tight and walt for orders. :.
The Chevrolet. Gray, Overland and ana
headway on Ford if tho shutdown
continues any length OF time, but
Ford IL prepared for this IN a meas
slrs, as he has enough cars available
for deliveries for from two to three
weeks yet. Retail automobile dealers
IN various cities stated today. how
ever, that Ford may have calculated
wrong in giving his competitors this
Unusual opportunity at car prospects.
Impression Among Buyers.
1t is evident on certain automobile
rows that buyers have gained the
Impression that the shutdown means
that Ford has quit selling as well as
making cars and that many pro-
spective purchasers are going first to
look at other makes. This situation,
they believe, will result in an early
announcement of the future Ford
policy.
Several parts and material plants
which supply the Ford Company are
working on Ford orders for future
delivery, but their number Is few
compared with those which have had
70 curtail or shut down.
In Detroit the businesses which viii
BE hardest hit are one or two big
department stores and smaller out
lying establishments which cater es-
I'LL "a AYanlnNaS