South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-06-28

But there are some others like
Chrysler Of Buick. now Of Maxwell.
wills once OF Ford. now heading his
own company. and Ersl5ine Of Stu
debaker. that have become for their
achievements better known TO the
motor industry itself and 10 Wall
Street than to the man behind the
autom obile wheel In the readjust-
ment. transitional period OF 1920-21,
that gave tho untried motor industry
It's first baptism OF fire. Albert Rus
sci Erszine lowered above all auto
mobile executives for he was ex-
panding when nearly everyone was
desperately contracting.
From Wagons 70 Motors.
Studehsker products - wagons,
harnesses and the lilce-have been
turned out for some seventy years,
but the story OF the modern Stude-
baker, the automobile company. Is
the story OF Erskine and his coura-
geous policies II was seven years
ago, July, 1915. that ne was elevated
from the treasurership 70 the presi-
dency at the special request Of Fred
erick s. Fish, then president and
now chairman OF the board. The
aoyalty-breeding enthusiasm that is
Erskine's greatest charm and busi-
ness asset was Immediately trans
mitted TO the organization to such
good effect that sales OF automobiles
that year and the year following
broke all records.
Then came 1917 and the war. and
Studebaker Immediately placed
patriotism above profits As early
as February 6 EIr. Ersklne wired
President Wilson. "Studebaker fac
tories Of course are at the disposal
Of the government. Any orders Civ
en- us VIII receive preference and
clear right OF way" Huge orders
were soon actually placed and for
the next two years Studebaker was
busy with all sorts OF war work from
ammunitions TO wagon harness so
that when the Armistice was signed
IN November. 1913 its factories were
approximately 100 percent on war
orders
His Confidence I'm 1918.
Studebaker's automobile fortunes a,
the same time at their lowest ebh
Erskine rose 10 his opportunity. lie
called together the board OF direct
ors a South Bend and told them
that TO prosper Studebaker must ex.
pand in a big way. i must build
a new plant at South Bend OF 1OO.-
000-car capacity. Notwithstanding
the largest annual sales. had been
less than two-thirds OF that sum. TIC
a board or directors. composed al
most entirely OF conservative bank
ers and lawyers. he sold the pro
position n that Unsettled time, q
$4,000. 600 note issue being prompt.
" authorized and fun speed ahead
ordered on an $S,000.O00 factory
expansion.
Then Erskine called IN his engi-
neers 20 design a new and up-to-
date car. This they did. but when
the model was shown privately 10 q
small group Of leading distributor,
it was rejected. 4 new engineer
was then given the assignment and
a car that pleased all hands wa,
created. From a lov-water sale.
market Of $4,000 cars IN 1918 Stude.
baker quickly advanced IN 1919 4
$4,000 cars. then IN 1920. while ave,
rage production was falling of
sharply Sc jumped over so percent
20 $1,000. Last year 20 broke al
records with a sales volume OF Sc.
643 cars, and this year it viii with
out doubt cross the $4,000 mark b.
Ia5or Day. Back OF this wonderful
momentum az the past two and Z
half wears is the contagious conf
dence ~ E~skiue that sets no goa
for Studebaker save that OF seconC
place in the American motor indus
Try
Small Margin OF Profit
One OF the big secrets OF stu
dcbaker's latter-day success has beer
the Ersk!ne policy OF giving IN,
public the utmost for the money
Erskine subscribes 20 the Ford ide,
OF cutting car profit as production
Increases. His idea for the pas
few years has been 10 establish 20
sition. This point Is illustrated b,
the fact that StUdebakers margin
OF profit in 1920 and 1921 wa.
exactly the same. los per cent.
No one vis.ored more clearly thar
Ersklne the big revival in aa.o