Evening star., 1922-09-09
BY j. c. ROYLE.
,setal CORRESPONDENT Of The Star.

Special Correspondent OF The Star. =
Copyright, 1927
NEW YORK, September s.-The
manufacturers of America, in con-
sidering their programs for the next
twelve months. can spell but one
word-expansion. Despite the labor
troubles. fuel shortages and trans
portation differences. Industrial plants
are today preparing on every side not
only for capacity business during the
remainder Of the year. but on a
record breaking expansion in 1928.
This trend Is clearly evidenced in
announcements received by telegraph
within the last twelve hours from the
great automobile and steel centers.
Detroit business circles were given a
thorough surprise when Dodge Broth
ers announced plans for the erection
of a factory which will insure SO
per cent increase In production next
year.
The writer learned on highest
authority today that at least seven
other great automobile or body con-
Germs soon will make announcements
of plant expansion fully equal In i'm
portance to the recent Dodge Broth
ers' announcement.
View Of an Expert.
According to Phil S. Hanna. an ex-
pert in auto production, it had been
supposed that in view of the unex-
pected volume of business exper-
fenced by the automobile companies
this year, there would be but little
expansion in the industry for the
next year or two. Bankers and heavy
that there would be breathing spell.
But Immediately after the Dodge
brothers announcement a survey OF
the automobile industry was made.
exclusively for The Star. and dtsclos-
ed the fact that leading producers
have plans in view involving as great
or greater expansion in 1923 as took
place this year. Studebaker will add
at least so per cent to its present
plant capacity, according to reports
from South Bend. The Fisher Body
Corporation. which has been working
fallen far behind orders. is to spend
100000 on a new plant. according
to word from Cleveland. The Hupp
Motor Company is adding a plant
which will provide for a 80 per cent
increase in production. and the
view which will make its 1928 output
greater than any year In its history.
Adds so Per Cent to Capacity.
subsidiary, is going ahead with its De.
troit assembly plant. which will add
about so per cent to its productive
capacity. Durant Motors is expected to
announce in the next few days the ac-
auisition Of factory sites for the eree- rec
tors Company is fitting up the former
Saxon Motor plant and similar acQutsi-
tions are reported today from a number
Of lesser producers.
There is only one conclusion to be
drawn from these facts. This is that
the automobile companies are going to
take advantage Of whatever slack sea
son occurs during the coming winter to
prepare for even bigger business in 1923.
Earning reports Of the various auto
the profitableness of the present sea-
SON Several have resumed dividends
after suspension Of payment for over
eighteen months and further dividend
announcements are expected soon. The
recent price cuts have not materially
reduced profits, for those cuts have been
distributed between the manufacturers.
the suppliers Of parts and the producers
Of raw material
Augmented sales due to the cuts
are permitting volume production.
which will sustain profit margins
throughout the whole of this year
and keep returns well up to the ban
ner records of the industry.
The portents evident in the automo-
bile industry are equally apparent
in other basic lines. The raw wool mar
ket is broadening, even in the face of
continued tariff uncertainty. and
prices are fully maintained. The sales
of woolen goods, while not large, are
steady. Cotton goods are moving In
volume at steady prices. irrespective
Of the speculative fluctuations of the
raw staple. Raw silk demand shows
the manufacturers of the finished
product are selling a splendid vol
ume of goods and disposing Of them
at satisfactory prices. Lumber. lime,
cement and other building materials
are moving up. but the demand is ad-
vancing faster than prices.
Pig iron Is jumping. the furnaces
are roaring at increased production
and raw ore Is in urgent demand. Fin
ished poducts in steel are being alb
sorbed faster than they can be pro-
duced. The school season is pro-
noting the sales Of dry goods and cloth
ing.