Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-30
1927 PROMISES TO TOP
r 3 ACHIEVEMENTS OF 1926
Used Car Presents One of Biggest Problems Awaiting
Solution by Industry-Foreign Markets
Afford Spur to Production

merce, the preliminary 1926 figures
show that of the total production.
3.95O.000 We're passenger cars and
| 100000 trucks.
"a Per Cent Closed.
And of this-2, $4,000 units of the
total production, or "a per cent, were
closed cars
The stupendous sum of $3,056 $50.
600 represents the total wholesale
! value of the motor cars and trucks
produced by the American automotive
industry during the year 1926. OF
his vast aggregate, $2,622, 100000 is
! the wholesale valuation of the pas
| senger cars.
Naturally, retail financing is of the
most vital Importance to the indus
! try, and the figures covering that
phase reveal some significant facts.
| That retail financing is "of the most
vital Importance to the industry" is
emphasized by the statistics which
| show that GA per cent of all the ne'''
| cars sold in this country last yo <
were sold ION time" The automobi.
paper outstanding amounts to $1,378,-
100000, with the average note at time
| of purchase 1896 for new cars, and the
average note at time of purchase $277
| for used cars.
Installment purchasing, an eco
nomic problem of profound conse-
| quence and affecting virtually all in
! dustries and businesses throughout
the United States, it can be seen. is
| firmly entrenched in the automotive
| industry.
Agency for Good.
Leaders in this endeavor are con-
! WINGED that as the partial-payment
! plan now is being administered by
| majority of the motor car manu-
| facturers it is sound and solid,
| definite agency for good and in no
way a menace to the fundamental Sc
! curity of the industry.
| However, with the amount of auto
mobile paper outstanding totaling
| $1,37S 100000, and GA per cent of the
| 1926 automobile business done on the
| part-time plan, the necessity for strict
| observance of sound economic prin-
cipleS and firm, conservative doctrines
is readily understood.
The inStallment system has been
great boon to the automobile industry
and TO the millions of persons for
whom ii has opened a way toward the
purchase of a motor vehicle either for
| business or pleasure, but, If it is to
continue so for both parties, 1t must
be conducted upon business principles
which have been tried and found not
wanting To the credit of the indus
try, it may be said that the partial
payment plan now is on a sounder
basis than ever before, with down
payments uniformly large, and the
number of months to pay limited in
reasonable and mutually equitable
degree.
Study of Registration.
Bankers, economists and other
leaders generally are agreed that if
the industry maintains it's present
policy of tightening up on first pay
ments and time limits there is no
danger in the large volume of bust
ness done on the installment plan.
A study of the subject Of registra-
ton brings to light some figures which
certainly have a place IN a discussion
of the industry's accomplishments,
present position and future outlook.
There are at the present time 49,
$50, 900 motor. vehicle registered in the
United States. According to State re-
ports, 10 $50, 600 of this total are pass
enger cars and 100000 motor trucks.
A clear conception of the dominant
position of this country in the auto
motive field is shown by statistics,
which reveal that total world registra-
ton is 27,500, 000-of which the 3D.
$4,000 owned in the United States
is 81 per cent. Furthermore, there are
100000 miles Of surfaced highways,
and a total of 3,001 1926 miles of high
way in the United States.
Truly, an American industry,
Railroads Share Boon.
The automotive industry too often
is regarded by casual observers as be-
ing a separate and distinct entity in
itself, with but little relationship to
other lines Of endeavor. 1t is true
that one must pay but scant atten-
ton to underlying forces to hold such
view as this, but the fact remains
that many look admiringly at the fin
ished product with but little eye to
the many factors, units and elements
which go into It's construction and dis
tribution.
The railroads Of the Nation are
large beneticiaries in the volume of
freight business, with a total of $3.50,
600 carloads of automotive freight
carried during 1926. This enormous
aggregate naturally has a vital effect
upon the earnings of the carriers
While on the subject of railroads
and automobiles, the matter of motor
bus competition, as it affects the rallied
carriers of the country, should be
treated in passing, at least.
Buses in their relation to railroads
appear to be in a transitional stage.
No general rule can be laid down with
| respect to the problem as whole or
the United States as a whole but,
viewed in the large, the question does
seem to be gaining some conference
and measure of unity.
Bus as Feeders.
Perhaps the most outstanding de.
velopment at the present time is the
increasing tendency on the part of the
railroads to avail themselves of the
benefits of the motor bus as q feeder.
or in some instances. as a definite
substitute for certain short lines.
Far-seeing railroad executives al.
ready have placed their companies on