The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-07-02
AUTO INDUSTRY
HAS BRIGHT
Oh TL0Ok
Believe Prosperity Of Moor
Companies VIII Continue
For Rest of Year.
BY MERRYLE STANLEY
RUKEYSER.

RUKEYSER.
Copyright, 1928, by Star Company
and distributed by Cosmopolitan
News Service.l
NEW YORK, July I'm the I'm
evenly distributed prosperity OF the
present year the automottve IN.
dustry was ut the forefront OF
those favorably affected.
Inquiries in the field fail 70 re-
veal Industrial facts which would
Justify the drawing of Dessimistic
conclusions from the recent weak"
ness OF the automotive shares. In
common with the general slump
Of security prices at the New York
stock exchange.
Manufacturers of automobiles are,
Il is true, perpetually optomistic.
And yet they. often underestimate
the capacity for growth OF the ln-s
dustry. Those who seek q more
critical view often find the manuIac-
turere Of parts and accessory
concerns who sell to the makers OF
finished cars and hence extend
credit to them-depen sources
Of information.
At three meetings this week OF
Independent study OF conoltlons
No Cancellations Made.
Answers were given to several
basic questions. One dealt with the
matter Of cancellations, and the con-
sengus Of opinion was that virtu-
ally none had been received. More
over, only q few hold ups or de-
ferments of schedules were reported.
Manufacturers OF axles, wheels.
bodies, horns and the hundred and
one units that make up horse
less vehicle cOnfided that their re.
leased orders run from one month
IN the future to four months, in
Ilicating cautious buying on the
part OF the car manufacturers on
the one hand, and no change In
policy from the early and pros
porous months in the year, on the
other.
IN accordance with expectations
IN inner circles 1t is likely there
VIII be q slowing up in production
otter. next week. The industry IL
subject to seasonal variations, but
the growing popularity Of the en-
closed car Is tending to minimize
the seasonal factor. June produc-
ton figures are not yet available,
but they are not expected to be
larger than May, which was the
peak month OF all time here.
Even IN May, the majority of
manufacturers revealed moderate
curtailment. compared with April.
but q remarkable squirt on the part
Of Ford, Chevrolet, and Star made
aggregate figures unprecedentediy
large. Al slump in the sale OF parts
ana accessories during May fore
shadowed curtailed production Of
most cars after July /. The acces-
sorry statistics are prophetic and
usually tell the story Of what il
happening In the industry sixty
days in advance.
1898 Output 70 Equal 1922.
Tempered observers predict that
~ many vehicles will be produced
IN 1923 as in 1922 which was a rec
ord year, when 2,527. 900 cars and
trucks were produced. In the
twelve months ending May II last
S,256. 900 vehicles were wrought, of
which 1,659,341 were made In the
first month OF 1928, the busiest
period in the history Of the indus
try, which IL q giant in swaddling
clothes.
The conservative wing Of the in.
dustry looks forward to a less &C.
tive second half of the year than
the record shattering first half.
but nevertheless a reasonably prof.
table period for the strongly en-
trenched, efficient producers.
Over the long pull. philosophers
and craftemen OF the industry ara
exceedingly optimistic. They no
longer fear the saturation point of
buyers, but are more concerned
with improving highway facilities,
especially in cities, to take care Of
the eyer.growing population of cars.
Herbert Hoover, in a conference
with leaders Of the industry in this
city, remarked that the saturation
point would not be reached until
35,O00,OO0 cars were in use, three
times as many as at present.