The Washington times., 1923-12-05
SIT URAT ION 0 I.
AUTO N|ARKET
UNLIKELY
A. r. Erskine Says Wealth In
crease Of u. S. Win Care
for Output.
BY W. S. Cousins.
! fcopyright. 1925. by Cosmopolitan
News Service.)

AD8ss4 w % = NtSA-A1A1te
Copyright. 1928 by Cosmopolitan
News Service.9
NEW YORK, Dec 5.T There can
be no saturation point in the sup
plying Of automobiles said A. r.
Erskine, president Of the Stude
baker Corporation today. for the
reason that the population and
wealth of this country are eontina- /
ally increasing and automobiles
wear out. .
In this way. the active head OF /
one Of the largest producers of a'l-
touobfles In America disposed Of
problem which has appeared TO give
much concern 20 economists and
inyestieafors who have been max
ing an exhaustive diagnosis of
the automobile industry, to ascer-
tain just when the production OF
automobiles must cease.
If overproduction occurs In N ]
dfvidual instances, it can and VIII
be corrected by curtailment, salu
Erslxine.
Industry Is Second.
Such rapid strides have been
made in quantity and quality pro-
ducti0n of autoElobiles ana motor |
trucks, he declared, that the auto I, ,
mobile industry now ranks second |
and IS 3 strong contender Tor firsf
nosition among the great. nlanufac- |
turing enterprises of the country
THE automobile industry ne
said. els one OF the greatest con-
suners OF raw materials and semi /
manufactured products, one OF the |
biggest employers of skilled and I'M
skilled labor. and the largest users
Of RAILROAD facilities. The great
industrial region north of the Ohio
river depends primarily upon the
automobile industry for its pros
peritv, contentment and happiness.
The industry is now an estaD-
lished, stable institution and Amer
icass bride. IT'S fortunes are mex
tricably wrapped up with those OF
the whole country and will, OF
course, vary with general business. !
But ii has been clearly shown that
II stands depression better than any
other and can be depended upon to
lead the recoveries which follow
these periodic depressions quicker
than any other Of the major indus
tries of America
StudebalIer Sales Good.
Erskine declared that the third
quarters operation Of the Stude-
baker CORPORATION had fulfilled ex- 1
pectations. the volume Of sales and
the net profits realized being very |
satisfactory. There was q decline |
in net profits per car in this PEI
Rod, due to the greater proportion /
0f sales of the light skies and
opens models, on which the margin
OF profit is smaller than on closed
- -. IL
Bueilegs III the fourth uuarter /
win show Slight contraction as
compared with that of the two pre-
ceding quarters, but q clear gain
over the same period last year,
Erslkine estimated. He is not sam
xufne regarding the speedy solution
OF the European problems, without i
which. he said, there can be mol
general revival Of the foreign trade
OF the country. Like other pro-
ducers Of popularspriced and good |
quality. cars. he foresees market |
for them IN Europe when normal
conditions return.
ssBritish, French, italian and Bel
eian home markets." Erskine said, |
fare protected by high tariffs and /
cheap currencies. Their local auto /
mobile, rubber and other industries /
are guarded against foreign in
vasion by high tariff walls. thus
insuring their home markets, which, |
after all, belong TO them and are
necessary for their internal pros
perity.
Americas Markets.
aIt is in the agricultural and
senii-fndustrial countries Of Europe, |
Asia and Africa, and the Western
Hemisphere that American export
trade must find its greatest volume
and make it's greatest progress.
Here we meet the products of
European industrial countries on an
even footing and while we can
be worsted whenever their costs
of production are materially less
than ours, we can beat them easily
in marketing our mass production
outputs.
1T is a vigorous game, full of
complexities and possibilities which
American initiative, ability and
courage can cope With"