Evening star., 1922-07-29
BY j. G. BOYLE

Special Dispatch 10 The Star.
NEW YORK. July 90. = Four of
the large producers of medium
priced automobiles expect to cut
prices on or soon after August l.
As result the whole automobile
industry. with all of its affiliated
lines and the subsidiaries which feed
it, is sitting up and taking notice.
Distributors and automobile mer-
chandisers throughout the country
are nervous over the situation be-
cause the extent of the cut in prices
is not yet known. and. indeed in some
cases is not yet fully determined upon
The automobile industry is facing
the most anomalous situation II mas
ever known. The majority of auto
mobile companies do not need to
cut prices to stimulate sales TWO
thirds of the manufacturers are
oversold. They cannot produce the
cars already ordered and are work
ing at capacity. Ford is making
more cars than ever before, and yet
the Ford factory is 100000 cars be
hind on closed car orders. Dodge.
Hudson. Overland, Chevrolet. Max
just closed the best half year they
have ever known from a sales stand
point. But there are some strong
concerns that for peculiar reasons
nave not lHlS
prosperity. These makers expect to
adjust their own problems by naming
lower prices. They hope by this
method to maintain volume of sales
during the period Of the year which
- normally one OF declining sales
activity.
No Price-CuttinE Wave.
No general wave of price cutting
is expected August 1. The projected
revisions downward are expected by
many in close touch with affairs to
average about 121: per cent. But if
those reductions reveal too great a
. differential as compared with cars
selling at the same present price
range. slashes by other makers may
be expected.
Business responded Immediately to
the improved situation as regards the
great railroad and coal strikes. This
Improvement in the various lines of
trade and commerce was natural
enough in view of the tensity which
the situation was assuming. That
tensity was thoroughly revealed in
business dispatches received within
the last twenty-four hours which
recorded the initial move in certain
sections to restrict the sale of food
products as was done during war
days. One big string of chain
groceries in the middle west declined
to sell more than ten pounds of sugar
TO each customer. There is not one
pound of sugar in the wholesale
houses In one section of the south
west.
Strike Loss. 5O-5O.
Steel plants and factories with
profitable orders on their books are
closed down and on the other side
of the picture, il is estimated that the
anthracite miners alone already have
lost over s75,000,000 in wages.
The building industry. which has
irC ~ Il
industrial activity. has been saved
from curtailment largely because pro-
ducers and distributors of building
material have forsaken the old rail-
road maxim of charging ''all the traf-
fic will bear Brick. cement. lime and
plaster all have been in tremendous
demand. but the prices have main
tained a steady level. which would
permit continuance of operations. Or
ders for lumber. which had suffered a
check as a result Of the rail strike,
again are expanding freely with buy
!ng in evidence for export, as we'll as
for domestic consumption. Mills again
are approaching capacity production.
Price increases Continue.
Leather and hides continue to record
steady increases in price. although
those same increases have tended to
restrain the immediate volume Of pur-
"haseS. Shoe manufacturers are ap-
proaching capacity production in near
~ every section except the Pacific
northwest.
Fruit growers. with splendid crops
maturing, are extremely nervous over
the railroad situation. fearing delay
in delivery of containers and in ship
ping consignments after they are
packed. The coal shortage, by curious
chance. has resulted in a widespread
increase in the cost of ice.
Purchases of merchandise by retail
ers are heavier than for eighteen
months. and. as was forecast in this
column. orders for railroad equipment
and supplies are being placed aggre-
eating tens of millions of dollars.