The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-04-24
By w. S. COUSINS.
copyright. 1923. by Cosmopolitan
News Service.)

ton of the present successful mar
keting of automobiles is by far the
most important problem ahead for
the manufacturers.
The manufacturer of q new COM
petitor in the low-priced automobile
field, with whom discussed this
subject today, said that while he
and his staff were giving a good
measure of their time and attention
to the developing Of new patents
and improvements for their cars
the major emphasis was, and will
continue to be, on the selling end.
Contrary to general belief, a big
name" in banking and finance, or
In some other Industrial line, carries
little weight If transferred to the
automobile industry. Intensive and
aggressive selling campaigns are
the only salvation for manufacture
erS who have a dread of using their
plants as storage warehouses.
Dispense With Extras.
OF all the automobiles coming
to market, it is estimated that a
per cent sell for less than 81 900
each; % per cent are in the 81, 900
to $4,000 class and only 8 per cent
sell for more than $4,000 each.
Feeling keenly the competition in
the high-priced group, number of
manufacturers have so dispensed
with ornaments and extras on
cars that they have brought their
vehicles down to the lower price
level where they have added to the
difficulties of the manufacturing,
concerns already in that class.
An important check to the in
crease in the sales OF motor cars
in the cities is the high cost of
garages. repairs and materials of
all kinds, and the congestion of
traffic.
Police Commissioner Enright. of
New York city, has announced pub
hcly that motor traffic in Americas
largest city is completely beyond
his control A similar situation
exists in practically all large cities.
Moreover. the increase in death and
injury from automobile accidents in
cities has made the rates of liza
bility insurance almost proIaibitive.
The police record of New York
city for the year 1922 shows that
$3.50 persons were killed or injured
as a result of privately driven
motors in that year; 1888 were
killed or hurt by trucks and 2,056
by taxicabs.
Some Go to Wall.
Another drawback to the market
ing of automobiles is the financial
condition of the farmers Farmers
have not shared to the same extent
in the prosperity that has been
sweeping over the country for the
last two years as have manufac.
turerS. AS result of the in
creased cost of farm necessities and
the comparatively lower market
prices for farm products, the pur-
chasing power of the largest single
industrial class in America has been
considerably curtailed. The farmer
enjoys the automobile as much as
anybody and needs it in his bust
hess, but If present business con-
ditions continue the automobile in
dustry realizes that good portion
of one of its most important mar
kets will be cut off.
What will happen to the big auto
mobile production plants If the tide
turns? Already we have partial
answer to this question. In the
greatest season Of prosperity which
the motor industry has ever known,
q number Of manufacturers have
already gone to the wall, while the
well known
The Lexington Motor Car Com
any of Indiana, Is at present in
receivership. The Lincoln Com
pany has been taken over by the
Fords. the Locomobile company by
Durant, the King and Briscoe COM
panies reorganized through new
ownership, the Wills st. Clarie COM
pany and the F'rontenac company
revived by new interests. The
plants of the Willys-Overland COM
pany at Elizabeth N. J., proved to
be too big an expansion undertak.
Ing for that company and without
returning a single dollar OF the mil
lions expended for it, It was sold
at auction to the Durapt company.
Fortunately. few of these COM
panies made direct offerings of
their securities to investors and
the losses were therefore concen-
trated among a small number Of
private capitalists.
Ford Is Prospering.
However, that wizard of industry
and finance, Henry Ford, has
demonstrated that it is possible to
manufacture low priced machine
and yet build up the most gigantic
Industrial mechanism that the
world ever has seen, with profits
far beyond the dreams of the Roth
schilds.
Such has been the transformation
in the banking and credit status
Of the whole country that present
conditions offer a sharp contrast
with those which prevailed in 1920
from the money standpoint only.
The head of Americas largest
banking institutions has declared
that the danger in the present
situation is not financial, but in a
too rapid increase of Industrial ex-
pense and Industrial cost. These
bankers are keeping close tabs on
the production OF commodities Of
the automobile type and viii not
permit an expansion financed on
borrowed money.
The automobile industry has
passed its pioneer stage, the older
companies have become strongly
entrenched and It is hard for new
companies to break into the field.
In addition to turning out a good
product they must have extensive
market facilities and almost un.
limited capital In the competitive
condition which will follow the
present boom the companies which
are not strongly entrenched in
these lines. win surely have hard
times