Evening star., 1924-03-22
EXCESS IN OUTPUT
OF AUTOS DENIED
Rumors of Factory CurtaiI-
ment Without Solid Base,
Survey Shows.
BY j. 4. ROYLE.

Special Dispatch 10 The Star.
NEW YORK, March 22.-The au-
tomobile industry has been surround
cd during the last few days by "a
Swirling flood OF rumors regarding
the possibility that overproduction
was taking place. that factory cur
tallments were in prospect and that
The market was approaching saturat-
lion. A careful survey of conditions
in the great auto centers, however,
failed to show that these rumors
have IA solid basis. At least they have
tailed to impress executives of lead
Ing manufacturing companies.
Ridiculed by Ford Company.
Officials of the Ford Motor Com
pany simply laugh at the reports and
in answer to them quote figures to
snow that Ford dealers are taking
cars as fast as factories can turn
Them out. General Motors executives
Take almost the same position. They
look upon q check TO demand as
merely temporary aSld refuse to take
alarm. The big Willys-Overiand
plant at Toledo and the huge Stude-
baker Company factories are running
At capacity and in both cases the
companies have a greater volume of
hnhlled orders on their books today
man they had at this Lime,last year.
tIeheral Motors sold more than so,
"oo ears IN February, compared viii
"o'9a9 in January and 55.427 in Feb.
fuary, 1923. Freight bills for incom-
Ing materials for the subsidiaries of
the pig company are running even
hesVler than for last year when the
olds Motor Works alone paid out to
the railroads S42S.00O for freight on
raw and unfinished materials.
Views OF Distributors.
Distributors, in expressing theU
views of the situation. explain that
automobiles do not move from dealeri
TO the public in the same volume in
cold weather that is reached in mild
weather Dealers undoubtedly have
large stocks on hand. but this is
condition which they have always de-
sired in March Indeed, they have
complained bitterly in previous years
when their stocks were small at this
time of year. If March weather had
been balmy instead OF cold, the cars
IN dealers hands probably would have
passed quickly to purchasers. Under
the circumstances the thermometer
has had more potent effect Oh the
situation than any approach to satu-
ration Of the market. Distributors
declare it is simply a case where
dealers will have to keep their money
invested in cars until spring weather
arrives.
Remains To BE Proved.
Oxerproduction is q pilingup proc
ess., No industrial mechanism in an
industry can achieve il In single
month. If there was no overproduc-
tion in February, and IL Is not
charged that there was. nanufac-
turers take the stand that oyerpro-
in the last three weeks. 1t is pos
sible, some state. that the current
rate OF production may be 100 high
to be extended over the entire year.
but that still remains to be proved
At least, reports of other industries
show no signs of slack ening or of
4 general overproduction of goods,
"r do they show any signs of drop
in the potential power of the public
to consume goods.
The president of one large auto
mobile company said today:
Our field Investigations in the last
fortyyeight hours have satisfied us
that while the investigation at Wash
ington may excite the stock market
it is not going to prevent people
who want automobiles from buying
them. The whole thing at present
is simply a case of unexpected cold
ruption in the progress of cars from
manufacturer to dealer"
Sees No Infation of Business.
T.. S. Jordan of Cleveland, president
OF the Jordan Motor Car Company,
says there will be no imitation of
business this year He believes that
the number of cars built will be
under 100000 and bases this asser-
tion on the fact that he expects deal
ers to have difficulty in handling
second hand cars rather than on the
inability or lack of desire of the pub
lie to absorb new machines. Some
auto accessory manufacturers in the
Cleveland district are finding it nee
eSsary to add to their plant capacity.
Industrial employment in Detroit,
which gives an accurate reflection OF
has risen TO a total of 241,263. This
compares with 2lS,260 for the corre-
spending week of last year. and with
a high point for all time of 242,331, |
reached February this year.