Evening star., 1923-02-19
AUTOMOBILE PRICE
ADVANCES H|NTED
Rise in Cost of Materials De-
cIared Likely to Be Passed
On to Buying Public.
BY j. c. ROYLE.

Special Dispatch to The Star.
NEW YORK, February 19.--There
is no prospect of automobile prices
being lowered and a splendid chance
that they will be advanced. That
was the announcement made today
by men most closely in touch with
the automobile industry. an an
nouncement of utmost significance
not only for the owners of the L.
351,3.6 cars at present operated ~
the United States, but TO the hundreds
of thousands of. prospective automo-
bile owners.
Manufacturers are clinging TO the
hope that prices for materials USED
in the automotve industry Will re-
turn to what they call a normal level
by spring If they do not engineers
in Michigan and Ohio centers de-
cIared today that higher prices for
new cars were more than probable"
Were it not for the possibility OF
fall i'll prices of materials the coun-
try now would be witnessing gen
eral advance in finished products
Manufacturers are eAremei! ielu
tant to increase prices. and to aNold
doing so are eAertinS every eltort -
cut costs Some of the big factorleS
already have gone about as ,ar ~
possible in that direction, ana loGdN
are preparing new price schedules TOR
use. if necessary. They are also "d-
vising dealers and customers that no"
is the best time to buy.
Parts Contracts Revised.
They point out that sheet slee.
higher tires are higher ana manu-
faCturers Of brass and copper pallS
farturers are revising old contracts
Body manufacturers viii not consIdei
former prices because OF inc shol
age of plate glass and ALUMINIUM.
The president OF one pIoi.ilto,.. ILL.,.
Detroit auto company SAID todaI
IF A leading company declaes -
take the step toward higher prlces
many will follow. There IS no nes
tency when the trend OF prices
downward Each company wants -
beat its nearest competitor to II, pu1
when there is a reason for adNahC-
ing prices it needs leader 10 breaN
tho ice and then most or the aL,,pl-
tious companies will quickly follow
suit.
Executives of the Peerless and
Chandler motor companies say moi
cations point to price advances D:
midsummer.
Metal Markets stronger.
Some of the reasons for the anxiety
OF auto manufao turerS arc pialhi&
ssen in the condition of the mrtai%
markets. Copper is at the hlgheSl
price in two years. with a wide
spread demand from domestic con
sumers of all lines and with at ieast
two Of the big agencies out OF the
market. Consumption, according !"
the most reliable reports. is running
well above production and producers
are reluctant to accept orders Tar
ahead for large amounts. Forelsh
demand also is picking up fast
Users of the red. metal also are hest-
tant about accepting orders for their
finished products unless they have
enough copper under option to as
sure them of safety. The American
Brass Company has advanced prices
on practically all of its products
from IS TO |. cent pound.
Tire Production Heavy.
Zinc is extremely strong. although
consumers are better covered Tor ln1lne-
diate requirements than in copper. sur
p.us stocks have been steadily reduced
Tin is advancing and many Keen OBJ
servers anticipate much higher prices
Lead is in splendid statistical position
in spite of the volume of bullion pour
ing in from Mexico, which has served
to keep prices down TO present levels,
which are about A per cent above the
average for 1922.
Prices for crude rubber are very
steady and so arc quotations on tire
| fabrics In spite of these factors. the
| tire makers are turning out castings Al
| a rate of 90 per cent above that for
; this time last year and are having on"
/ of the most active first quarters ever
| known in the industry.
The markets for raw and refined
sugars continued today to feel the dts
tlrbiIar effects Of the recent pric" furry.
! TIL. excellent marketing methods of the
: Buriey tobacco growers are showing
| plainly in the steadness oi the average
prices at which recent heavy purchases
! have been made by tobacco manufac-
| turers.
AS a result of the distribution Of
| bonus shared in stock to employees of the
General Motors Corporation. one in every
twelve workers now Is a holder of the
,F fao