Evening star., 1924-09-08
RISE IN AUTO PRICES.
NOW BEING limited.
Brightest Outlook at Present
Declared to Be in Sale
of Motor Buses.
BY j. c. ROYLE.

special D.Spatcn 10 Inc STAR.
NEW YORK, September s.-Al-
though there have been many price
increases put into effect by automo-
bile manufacturers in the last 60
days, there are number of COM
panies still planning advances in quo
tationS. The makers have reversed
the old saying, the higher the few
er" and now are yelling. the fewer
the higher" as they boost the price.
The trend. they say. is Enthusiastically
upward, with the limit as yet un-
fixed.
Leading officials of the important
companies explain that when sales
and production are in heavy volume,
costs decline in direct ratio to pro-
duction increases. The reverse of
this condition now is true. Prices
established last summer. and many of
which still are in effect, were based
on a sales volume which has not ma
terialized. Dealers have been stocked
up to the limit of safety, and some
financiers. say beyond it, The in
dustry, therefore, is resigned to a
smaller output during the remainder
of the year. AS costs are at or close
to rock bottom, according to the man.
ufacturers, the only way they can
continue to make and sell cars with
out going into the hands of receivers
is to advance the prices of their prod
ucts.
Ford Results Not Explained.
In talking of costs in the same
breath rock bottom, however, the
automobile men fail to explain how
1T is that the Ford Company. which
has been working it's employees on
a five -day-a-week schedule for two
months has been able to turn out
very nearly as many cars as when
the workers labored and were paid
for six days week.
In support of the move it has been
said that the five-day week has en-
abled the Ford Company to keep all
its employees at work. instead of lay
ing off some during the dull period.
But if the output has been about the
anne as on SiX-day schedule fhiS
reasoning would seem to be unsound.
To the ordinary mathema tiCian it
would seem that the Ford Company
has added to its profits a minimum
of So a week a least for every one
of the scores of thousands employed
at daily wage of Sc or more.
Keep Close Watch on Plant.
Efficiency experts are watching the
situation closely. feeling that if la Dor
costs can be cut one-siXth in the
Ford plants immediate steps to re-
wise operations in other factories
and industries are necessary. They
also are watching to see if the Ford
concern will demand a corresponding
increase when the factories are re-
turned to a SiX-day-a-week schedule
The company is expected to main
tain about the same output in Sep
tember as in August, when the pro-
duction was about 10000 vehicles
Ford stocks are now said to be down
to normal. being about Is cars per
dealer, and considerable part of the
output between now and Spring will
GO into bank of parts to provide
next seasons requirements
Two Of the larger automobile plants
in Detroit have reoprned after tenn
porarY idleneSS in some departments.
and this has raised industrial en-
ployment to 198.937, the highest point
since employment began to decline
late this Spring, and only about 10000
below the total employed at this time
last year. Chevrolet, Overland and
Star factories are making slight in
creases in schedule. and the month
will show slight rise in output over
August. although it is doubtful if
the production Of cars and trucks
will exceed 275,000. The increase is
due largely to demand for new
models
Bus Outlook Brightest.
The brightest spot on the motor ve-
hicle horizon is the extensive pro-
grams for bus operations reported
from cities all over the country
Buses Of the type designed for city
use cost about $4,000 each. One COM
pany alone which desires to operate
in this city at this rate would be in
the market for at least $a,00n,000
worth of equipment. A dozen other
bus companies have outlined plans
for expansion and increased opera
tion in this section, while builders
of cross country buses and hu' bodies
such as are used on runs from Tampa
and Miami to Boston, from New York
to Boston, overnight, and from ST.
Paul to the Pacific coast, are unable
to keep up with deliveries.
Bus men predict that the time is
coming when every city of even mod
est pretention will have local bus
service.