Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-26
PROSPERITY IN j. S.
DEPENDING ON AUTO
Good Times Must Return to
Industry First, Says
Car Official.
Dispatch to The Star.


DETROIT, october 25.-Present an
future prospects of the automobile bust
ness have been the subject of pointet
comment this week from ranking
company executive of the General Mo
tors forces.
1t comes from W. A. Blees, one O
the vice presidents in charge OF sales
and was relayed to an assembly Of news
paper publishers at Chicago.
Declaring that prosperity cannot re
turn to America until 1t returns to thu
automobile industry. Mr.. Blees assert
that the depression has now reached
q purely psychological level. He credits
newspapers with arresting the decline
then he goes on:
I'VE must look again to the press tx
guide public opinion out of its present
pessimistic, muddled state to one o.
confidence in the future.
Newspapers Can Help.
1.-THE newspapers can help the auto
mobile business and every other bust
ness. But until the automobile in
dustry reaches more solid ground there
can be no general improvement. The
automobile industry constitutes the
largest sector of American business
Directly or indirectly it is responsible
for the employment of 4,700,000 work.
ers. Through its enormous consump-
ton of raw and finished materials. II
affects practically every other basic
industry.
THE responsibility for the present
economic depression cannot be laid
alone to security speculation. High
pressure and unsound selling methods
by a number of industries. In which
the Automobile industry is no exception
brought about a condition commonly
called consumer overindulgence.
Industry Awakens.
"The automobile industry early in
1880 awakened to the fact that 1t had
made 100000 more new cars than
consumer could digest. Extravagances
had crept into the business to such an
extent that it required the sale Of over
100000 new cars a year to keep up
the pace. The used car, of which about
100000 are seeking owners or junk
piles, was considered more or less Of a
necessary evil, and by many manufac-
turers was regarded as strictly deal
er's problem.
THE dealer organizations had been
high-preSSured and were affected by
boom conditions just as were the manu-
facturers. Dealers had INDUCED in
boom time extravagances and had de-
Bankers were demanding of dealers
q reduction of loans and liquidation of
frozen assets. Expenditures were run
ming wild. Distribution costs were ex-
cessive, but, as Mark Twain said about
the weather, Everybody talks about it,
but nobody does anything In a nut
shell, we were trying to gear sales up
to. productive capacity. and you know
the answer. It worked for a time, but
1t failed because it was fundamentally
unsound.
But already the remedy is being ap-
piled. Production is being sanely geared
to sales. Dealers are receiving I'M
limited factory guidance. The factories
are sharing responsibility for the used
car problem and dealers profits are be-
ing safeguarded.
What the United States needs most
now is confidence and courage, hard,
serious work and good management,
sane selling and merchandise Of maxi
mum value. The only incentive that
will start the public buying again Is
the offering of such outstanding values
that the public will want to spend its
money.
Material, production and distribution
costs are lower and the buying power
Of the dollar has greatly increased. The
consumer realizes the increased value
of his dollar. He wants his new
dollars worth. When we offer that
value, buying again will start"
Aluminium Versus Steel.
That aluminium alloys may become
q formidable competitor Of steel as ma
terial in body building has been fore
cast in statements made before the So
ciety of Automotive Engineers In q ma
tional session at Pittsburgh.
Although presented by representa-
tive of the Aluminium Company OF
America, the prediction was backed by
substantial reasons why the lighter
metal is regarded as a logical develop
ment from the heavier materials now
in use.
The talk dealt with aluminium use
rs applied primarily to commercial
vehicles, leaving the passenger car angle
untouched. but 1t nevertheless has an
application there.
It was pointed out that the advan-
tages of reduction in dead weight have
been apparent, but it is only since the
advent of the strong alloys in COM
mercial shapes that they have beer
demonstrated.
At present, it was stated, aluminium
Is replacing other metals for the
strength members in trucks motor
coaches, steam and electric railway cars
Aluminium bodies now cost more, 1t i;
admitted, but the alloy material weigh,
only IS to so per cent as much. In ar
aluminium body weighing 40 per cent a
much as similar steel body two pounds
of aluminium are used for every f1vt
pounds of steel replaced. At an average
of SO cents pound the aluminium
would cost IS cents, but would replace
1--WE pounds of steel at three cents 3
pound or Is cents.
Against this are placed the weight
reduction allowing larger pay load
higher road speeds and less gear shift.
ing for similar reasons, resulting IL
lower operating cost.
Aluminium also is rustless and has Z
scrap value, whereas steel has practi
cally none.
.(Copyright, 1880. by North American News
paper Alliance)