Evening star., 1924-05-13
OUTLOOK FOR AUTOS
AS SEEN BY BUILDERS
Manufacturers Differ as to Wheth-
er Price Level Will Rise
or Fall.
SUMMER TRADE MAIN TOPIC
Reception of 1925 Models and
Schedules Discussed.
SUMMER TRADE MAIN TOPIC
BY J. c. ROYLE.

Special Dispatch to The Star.
NEW YORK, May 13.-Up or down?
That is the question automobile man
ufacturers are debating vigorously
Some of them. headed by Alfred p.
Sloan. president OF the General Mo-
tors, hold that when the sumWer an
nouncements of models and PRICES are
made for 1926 the price levels VIII
sert that these levels must be main
tanned as at present or dropped IN
order to stimulate sales volume and
allow quantity production.
While additional economies will
always be possible" Mr.. Sloan said
today, there are compensating fac
tors which must be given consldera-
ton. especially the increased cost of
duced the price of cars in line with
and frequently in advance of reduced
costs, made possible by better engl-
neering and improved manufacturing
methods.
Sees No Increased Consumption.
'It is improbable that consumption
of motor cars this year will be any
greater than last year. l believe the
prices made last year discounted to
some extent what was believed TO be
a still expanding volume. SeVera!
manufacturers have already advanced
prices in the last few months and
believe a reaction upward IS certain
to come until the situation Is equal
lied"
The Ford Company, on the other
hand, has given no indication or IN
tention TO increase the price. how
does he do it," is a question that has
been asked about Henry Ford and his
motor output for years Ihe new
Ford power house at Iron Mountain
Mich, which is almost completed,
may serve to answer that questlpon IN
part The principal requirement or
the power plant is to furnish Steam
for the larger lumber dry kiln and
new chemical wood diStillation plant.
In addition, however. 1t is made TO
furnish electric power for running
the body plant and to supply fue gas
for drying wood III the chemical
plant.
Plant Equipment Outlined.
Steam at five pounds pressure is
required to heat the dry kiln. 1t
was found that steam at 225 pounds
pressure suitable for operating tur-
bine engines could be produced at
only 10 per cent more cost than at five
pounds pressure. The new plant there
fore produces steam at 225 pounds,
feeds il to two 7.500-horsepower tur-
bines and bleeds from the latter steam
at five pounds pressure after the major
part of its energy has been utilized.
The furnaces which produce this
steam will burn almost anything:
Although the principal fuel is wet
sawdust, refuse, oil, tar or powder
ed coal may be utilized. The flue
gases from the wood dis6llation plant
are carried through a ten-foot duct
500 feet long to be used in maniac
ture Of chemicals, and even the smoke
from the furnaces furnishes by-proo-
uctS.
1t is a notable fact that, in spite of
occasional complaints the Ford COM
many is Shipping them cars they have
not ordered and do not want, mighty
few Ford agents ever give up the
agency. The Ford se9ing organiZa-
tion is as efficient and run under as
high pressure as the factories, ana II
is known that it has made Rractlce
of shipping each community, cars on
some sort OF quota basis basep on
power of absorption.
This percentage is arrived 2t
through study of bank deposits per
capita wealth. industrial conditions
and other factors of the community.
Dealers sometimes kick, but in 80
cases out of 100 they cling to the
of people on their dealer waiting
list
Manufacturers say that dealers are
hard to satisfy. A year ago they pro-
tested bitterly because they could not
get cars and complained over the loss
of sales this cost. This spring they
are complaining because they have so
cannot move Immediately. Until,
however, there is greater impa-
thence shown by dealers to relinquish
agencies than has been evident this
year it is fair assumption that the
majority are making fair prohtS or
are living on past profits. Manufac-
turers know that the dealer Is neck
of the bottle and that if they choke
that passageway with excess proGuc-
ti0D h0t1 stand To lose