The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-06-04
AUTO SALES SHOW
TRADE IS col D
At PRESENT TIME
April Reports Of Railroads
Are Best Since Pre-
War Days
BY WALTER II. BROWN
Editor New York Commercial
BY Leased Wire TO The Age-Hcrnld)

(By Leased Wire TO The Age-Herald)
NEW YORK, June 3-Instead of
becoming unduly excited over what
may or may not happen, six months
or a year from now, it might be just
as we'll to consider the present state
of trade. We might examine the au-
tomobile industry. for example The
sale of low-priced cars is a pretty
good index. On May % the Ford
Motor company established new
high record for daily output, 6,7S1
cars and trucks from it's 2S assem-
bling plants. What is more, Mr.. Ford
expects to continue this same rate
of output during the remainder of
the year, and he has not yet made a
failure in diagnosing the economic
situation. In the medium priced
cars, Studebaker plants are turning
out $4,000 cars a month, or at the
rate of 10000 annually, as compared
with 100000 last year. The doors
building at South Bend, Ind, are
crowded by scores of dealers and
customers who come with cash to
plead for cars, and who are ready to
drive them away as soon as they are
obtainable, and on a single day this
week 200 cars were driven away in
this fashion.
Mail Order Business Good.
Another excellent trade index is
the amount of business transacted by
the great mail order houses. These
deal largely with farmers and those
in rural districts who are not with
in easy access of trade counters
Sears, Roebuck & Co.'S sales during
May were 1S,465.379 as compared with
s144.694 in May, 1922, an increase
of 27.5 per cent while their % IN
crease for the five months was 80. So
per cent. Montgomery, Ward & Co.'S
sales for May We're S10,796,431, as
compared with $6,377,076 in May,
1922, or SO 80 per cent. while for the
five months the increase was 1904
per cent. The significant point in
these figures is that the increase
amount of business by each of these
concerns was something over $4,000
600, or more than 100000 month
increased purchasing power coming
from the rural districts for these two
houses.
Railroads Prosper.
This increased business activity is
now showing up in the financial re-
turns of the railroads. and the April
earnings reports are the best since
pre-war days. The returns thus far
received indicate that the class l
roads will have earned 6.46 per cent
on their property. valuation as
slightly over per cent for April.
1922. Thus the railroads are work.
ing themselves out of their difficult
ties, and will continue to do so if
they can be let alone. If so, their
credit will improve, and they can
continue their plans for betterments.
chief of which is the purchase of new
rolling stock. The railroad companies
are the largest customers of the
steel industries, and it can be read
lily seen how much industrial activ-
ity must radiate from this course.
1t is not to be expected that the
country can continue its present
high speed industrial activity for
ever. There was so much left I'M
done during the war and later held in
allegiance because of the depression
in business that there were heavy ar
rcars of work to be done, and we
have been rushing with feverish
haste to make up those arrears. We
are beginning now to overtake the
most urgent of them, and for there
to be a slowing down in natural and
normal. AS yet, it amounts to very
little, but it is to be expected and
should not be regarded as calamity
when it does come.