New-York tribune., 1922-12-16
Auto Competition
Grows Keener as
Production Gains
Output 10 Continue Without
Inventory Shut Down,
New financing Difficulties
Experienced in Industry
ssssasi Dl.rsssA 10 re rrsu-.

- hoAAf bNt- ~ - 1ouAlHNea
heavy manufacturing In . number Of
leading automobIle fseterIss has
caused decision TO forsgo the usual
closing for inventory during the holi.
day season, q period usually ten days
or more IN length. and 70 crowd the
actual taking Of inventory into two or
three days Az these days would have
been holidays anyhow for the working
force, the vorh Of manufacturing can
be said TO be going ahead without
cessation.
Appearance Of extreme weather 10
tending 10 make the coal situasion
again aeute, and this may have caused
several factories 20 close or AZ least
cut down on operations. The coal
supply IN the city is mons too large
At best and daily deliveries IN large
Quantities over The faiifoads arc al
most imperative 20 sustain unintsf-
rupted work. Though the Industry has
recognized all along that the railroads
would be severely Handicapped when
eold weather arrived and has az
tempted 70 make provision against ",
there has not been opportunity 20 &c
eumulste coal supplies.
In the past few days the Louisville
4 Nashville Railroad has declared az
embargo on several llnes connecting
with II at Cincinnati, among these
being roads serving Detroit, because
Of the congestion In its Cincinnati
yards. Unless II Is possible speedily
20 relieve the congestion At this
point there will ensue delays In de-
liveriea into Detroit. which will make
sustained operation diiheuh at the au.
tomobile plants. The domestic eoal
situation In the city is bad. and hrst
call on the coal coming In IL held by
the househoider.
Much Of the manufacturing In The
last month or more has been 70 build
up a stock for dealers, which could be
drawn against In the event OF possible
eeGsations In manufacture because Of
railroad dihieulties. Despite this,
however, there has been little oppor-
iunity 20 build up stocks because Of
the continued heavy demand for ears
In almost every section Of the country,
and, as a general rule, factories are
rushed 10 meet demands, especially on
closed cara. A railroad tie.up al this
time would affect not only the build
ing Of ears for early spring trade, but
would also cut of n large amount Of
ready business, which factories are
now getting.
Dividend declaration by major com
panies IN the last thirty days indieates
that decreases In prices made IN the
last few months have little effect on
earning possibilities where the reduc-
tions result In increased production,
Factories which have been compelled
10 follow along on price cuts without
being able 70 realize q sufficient
amount Of increased business have
been hard hit and will be hit worse
probably in the Developments over the
winter months
There has been considerable re-
financing and reorganization IN The
last month and as many companies
which have held fairly responsible
places In the industry or seversl years
arc undertaking new financing now.
In every case the rehnaneing program
is based on manufacturing plans which
'eaIi for a departure from forner plans
and compiete revision Of lines. Com
pahies which previously had been man
ufaeturing siI-eylinder ears In the
81 800 70 1880 field exelusively arc
now planning In large part % sc. into
the low-priced six-eyllnder class, with
prices hpproHirating $1,000. In some
eases the former llns win be aban-
donsd entirely and In others II viii
be continued as q supplementary line
10 the nav low-priced one.
One Of the signs Of The narrowing
OF the automobile market ia the In
ercasing difieulty Of the smaller com
panies 70 enlist new financial assist.
ance. Reorganizations which would
have been accomplished with little ef-
fort a few years ago are now slow 70
effect, and IN some eases cannot be
effected. Several companies now IN rc.
eeivers' hands will not find buyers and
will be closed out Three years ago
entirely new groups Of operators
would have been found easily 10 take
over the plants.