Evening star., 1923-12-27
3,Ol0,O(ODAUT0S
DOOMED IN 1924
Replacement Demands Mean
Enormous Returns for
Motor Car Makers.
BY j. c. R0YLE.

special Dispatch to The Star.
NEW YORK. December 27.-The au-
tomobile industry is preparing to en-
ter the new year with more money in
the banks, fewer debts. fewer bur
densome inve ntories and more conf
dence in the future than at any time
since the automobile business escaped
from its swaddling clothes: At no
time since the war have executives
of the industry been SO thoroughly of
one mind regarding future business,
and at no time have they had so much
ready cash to back up their opinions
with concrete programs of production.
The best evidence OF the faith these
men have in conditions for 1924 is the
buying pace which has been set by
the leading companies. The Ford COM
pany, for the first time since 1918, is
rushing delivery of materials and
speeding up production with a view
to stocking cars for March and April
deliveries. This example is being fol-
lowed to a greater or less extent by
other manufacturers. Warehouse
space AL over the country is being
rapidly taken up with the purpose of
providing storage for excess produc-
tion until the spring rush starts.
3,00O,000 Cars to BE Junked. =,
One of the chief foundation stones
on which hopes for 1924 are being
raised Is replacements. Manufactu-
rers feel that the demand for cars
for replacement purposes will be un-
precedented. Cars, they insist, are
being built better than ever before
and give longer service, but that the
public is less willing to put up with
an old car than formerly. They say
that large proportion of the Amer
lean auto-buying public is so pros
porous that many car owners will not
tinker with a car after the first two
or three years.
In the coming twelve months it is
estimated that over three million of
the twelve to fourteen million cars
now in operation will find their way
to the junk heap. The business of
turning out vehicles to replace these
will be sufficient to keep the first
dozen ranking makers in full opera
ton. They hope also that fully one
mllnon new buyers will be found,
which would result in sales of 4,000,-
OUO cars, or practically the same
number as in 1923.
Heavy Sales of Rugs.
More than S50,000,000 has been spent
Tor oriental rugs, carpets and draperies
by American buyers in 1923. OF this
sum- S25,00O,000 represents their i'm
poration value, while of the other $685.
100000, 55 per cent has gone into the
cofrers of the federal Treasury. Sales
OF oriental floor coverings in the
last year have been between % and so
per cent higher than in 1922. Dealers
declare that in many cases prices have
beeneon lower level than even be-
fore the war
Rug men say the surprising thing
about the years business was the
number of rugs bought by Americans
in modest circumstances. In the last
three years, they say, there have been
more buyers from the ranks of wage
earners than the most sanguine of i'm
porters would have thought possible
five years ago.
Sharp Competition Ahead.
S. H. Nahigian of Chicago, an ex-
pert on Persian, Asia Minor and Chi
nese rugs and draperies, declared to-
day that competition of the keenest
Kind had brought prices to their pres
ent levels. L do not mean competi-
tlon with domestic rug and carpet
makers" he added Strange as il
may seem, there is less competition
between the domestic and imported
pected.
The competition / mean is that be-
tween importers. However, even that
competition cannot serve to keen
those levels intact much longer, in
my opinion. for already we are be-
ginning to feel the effects of the de-
population of whole communities in
Persia and Asia Minor Persian labor
Is awakening TO the desire of q
larger return for it's efforts. Chinese
rugs and draperies, of course, have
not been so affected. While | cannot
speak so authoritatively for the do
mestlc manufacturers, my observa-
tlons lead me to believe that they
also have had splendid year"