Evening star., 1927-04-26
AUTO SALES SLUMP
ISLA|D TO FLOOD
Manufacturers Are 0ptimis.
tic as to Future of the
Trade, However.
RY j. C. ROYIE.

Special Dispatch to The Star.
NEW YORK, April 26.-Within the
next 10 years there win be 30, 600. 600
passenger automobiles on the streets
and highways of the United States
according to Dubois Young, president
of the Hupp Motor Car Corporation
Many other leading automobile manu-
featuring company executives are
equally optimistic as to the future
what lis worrying some of them is
the present situation and the OUTLOOK
for the immediate future.
The floods in the West and sonth
were something no manufactul
could foresee. But they are sure 70
affect everybody in the autoThoD!ie
business. The huge property ioss' the
loss to general business, and prospec'
tive losses in crops must aIect the
purchasing power Of hunofeus 0L
thousands of prospective autornooile
purchasers. a..
Last year." Mr.. Young said' -
4s0. 900 cars and trucks were pro-
dured in the United States, bringing
the number of registered vehicles TO
% 400 900. What 1927 holds in store
is A. matter of prediction, but there
Is reason to believe the year VIII be
even better than 1926 for some COM
panies."
Jordan Is Optimistic.
Edward S. Jordan, president of the
Jordan Motor Car Co., is equally op-
tinlistic. He says regulation OF FAC
tory OUTPUT to meet the needs Of the
dealer. modification Of ambitious plans
to increase capacity by utilizing inde-
pendent parts makers, and elimination
Of q number of models will have a
favorable bearing on the last half
years business.
Edward van Linden OF the Peerless
Co. saws It is impossible to picture
the future without seeming unduly op-
timistic, and his concern plans pro-
duction OF 10000 cars, as against
10000 last year.
President Leonard OF the F. B.
Stearns Co. says his factory Is woTk-
ing "a hours day, and has doubled
the payroll within month. Walter
C. White, president oe the White
Motor Co., says he looks for what
might be called good business without
exurberance" this year. Fred c..
Chandler, president Of the Chandler
Motor Co., agrees.
Alfred P. Sloan, president Of Gen.
eral Motors, has just made public the
net earnings Of that corporation for
the first three months of 1927. They
IOtaled %02 Dol. 4US, an increase OF St,-
639,790. and Mr.. Sloan declares cur
rent conditions are satisfactory.
The fact remains, however. that the
automobile business as a whole has not
reached it's level of this time last year
and that some companies have suf-
fered declines. Sales of accessories are
falling off. Also the steel companies,
among the first to feel the prospects
of slackening in automobile demand,
have cut down production to no slight
degree.
Sheet Market Easier.
Uncertainty has forced production in
the Mahoning Valley, which produces
huge quantities of automobile sheets,
TO about 40 per cent of capacity
Ninety-two OF 127 independent sheet
mills there are now making steel
There has been a recession of buying
Ia the Pittsburgh district and some
of the Cleveland plants have reduced
forces. The sheet market is easier,
although minimum prices are un-
chenged.
tsuying and operation of automobiles
depend largely on good roads and thou
sands Of miles OF roads have been
washed out, destroyed or made impas.
sable for a considerable period. No
doubt exists as to the ultimate future
of the automobile idustry. Little ques-
fion is made of the ability of certain
companies to continue to make fine
profits, but the outlook for the imme.
diate future is not as bright as a few
weeks ago.