Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-17
AUTOMOBILE TRADE
REVIVAL PLANNED
Upturn Shown in Industry
as Junking Committee
Starts Work.
BY LEMUEL r. PARTON.

Special Dispatch to The Star
DETROIT, March 1.-TWO years ago
Maynard Keynes. British economist and
author of 1.-THE Economic Consequences
OF the Peace" predicted in the London
Nation and Atheneum that the Ameri-
can bull market would last until just
about six months after Henry Ford got
into full production.
The astonishing fulfillment of this
prophecy was an additional detail of q
convincing body of evidence tending to
prove that automobile manufacturing
and distributing is the key process of
American business. An instrument board
indicator which would record manufac-
lures, employment and sales also would
be barometer of business conditions.
Upturn Is Shown.
Today, In Detroit, automobile capital
of America, figures are available which
show, on their face, an upturn in the
automobile industry. For the week end
ing December 7, 1929, after the market
smash, there we're employed 172,079.
Thus the last week of production shows
the number of persons employed.
AS to what extent this increase Is off,
set by part-time employment, or other
qualifications, information is meager
and conflicting Neither State nor Fed
eral bureau or the manufacturers them
selves will go beyond the figures as they
stand.
While this bit of statistical nourish-
ment may be taken at its face value.
Detroit is now the testing laboratory
for new plans of organization. opera
tion production and distribution far
more fundamental than the readiust-
ment Of 1921. If these changes work
out. the automobile will pace the in
duStrial parade with more even tempo
no longer forging ahead or dropping
behind its business cohorts. The wheels
of the factories are to be meshed more
closely in the rack and pinion of eco
noInic safety and stability.
Some of these adjustments are fun
damental and some are palliative. With
ample credit reserves to tide it over
a period of depression, the auto1no-
bile industry is moving ahead con-
| fidently, but naturally is concentrating
on immediate necessities and possibili-
ties. Among these is the proposed
expenditure of about $4,000, 900 during
| 1880 to junk 100000 used cars. If the
automobile is the key to national BUSH
/ ness, the used car trade is the key to
| prosperity in the automobile industry.
Junking Committee.
| r. H Grant is chairman of a COM
mittee to carry through the junking
plan. Other members are G.. H. Bliss,
j. E. Fields, Paul G. Hoffman, H. w.
Peters, Courtney johnson and Edward
| S. Jordan. One company already is
| junking cars extensively. The dealer
| spots $50, the company $50 and the
| spawned old trade-in, whose recon-
ditioned value is doubtful anyway, goes
| to the graveyard. But there is plenty
of acute competition in the automobile
| industry and not only this junking
| process but the other stimulating treat
! ments will depend on a mobilization of
diverse interests in highly concen-
| trated plan.
Opening the trade channels with
| sledge and crowbar Is admittedly one
of the palliative measures, but If it is
carried on to sufficient degree it will
help clear the way for new sales. While
OIL wells have been capped. peaches
have been allowed to rot on the ground
and fish have been thrown back into
the sea on account Of overproduction,
| this is probably the first time that ex-
pensive machinery has been smashed
\ up to redress the unfavorabIe balance
OF production against distribution.
| Leaders of the industry want two
things understood: First, that the cars
which will be junked will be the vete-
rams which will be better off the road
anyway, and second, that higher gear
ratio and horsepower are speeding up
traffic to degree which makes the
| Highways no longer safe places for
cr1pples. Traffic systems have been
adjusted to a swifter stream. Last year
saw the first arrest for slow driving.
| There are many records of disastrous
accidents due to slow, clumsy and In
| tractable old cars.
! Copyright. ia3ol