Evening star., 1931-06-16
SAUTOMOB|[E
2iRADE HOLDS0WN ' !
General Motors President De-
CIares Present Sales Drop
Is Only Seasonal.
BY JOHN r. sINCLAIR.

BY JOHN r. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, June 16.-When Alfred
p. Sloane, jr., president of the General
Motors Corporation was interviewed on
the business outlook for the rest OF the
year, he replied that as no one seemed
to know much about II, ne nao reacneo
the conclusion that "the best policy 10
pursue Is to try to discharge ones own
responsibilities, whatever they may be,
in the most constructive way possible
to the interests one represents, and 10
promote that idea as being the one that
viii probably contribute more toward
working us out Of our present situation
than any short cut methods or theories"
And the outlook for the automobile
1.-THE fact that retail sales throughout
the United States at the present time
are declining" he replied, sis not indie
atiye of anything except the seasonal
decline that Is inevitable at this time
of. the year. 1t is unfortunate that
there is not greater recognition OF
that fundamental fact.
CONSUMER sales have been running
below last year for the industry as a
whole, to a considerable degree. do
not think, however, that. the trend,
giving weight to the seasonal variation,
Is In any sense downward; neither would
I say that there was any particular i'm
provement. should say that the in
duStry was holding its own.
LET me make another observation.
Automobile production, due to the fact
that many manufacturers, when chang
ing models, are doing so at the end Of
the year, is likely to be more or less,
curtailed during the Summer and Fall.
It is reasonable to expect that 1t will be
stepped up again in November and De-
cember this year, because OF the change
Of models in those months. Last year
the changes in models were made dur
ing the Summer"
ts Five Year Plan for u. S.
DR.. Charles A. Beard, author Of THE
Rise Of American Civilization" Is out
with remarkable flve-year plan for the
United States in the current issue OF
the Forum. -.
nomic council to achieve business CO.
ordination; the abolition of the Sher-
man and the Clayton antitrust laws;
a national board of strategy and PLAN
ming; a strengthening Of the Bureau OF
Standards in order to coordinate re-
search, eliminate duplication Of effort
and Standardize all essential commodi-
ties produced"
He asks also for the formation Of
each industry into a syndicate, with a
separate agricultural syndicate, a
marketing syndicate and syndicate OF
exporting and importing corporations
to direct trade with foreign countries
'in such q way as to secure the goods
needed by the United States, control the
issue OF foreign securities in the United
states and stop the reckless habits OF
f1nanciers in making loans TO IRE
sponsible governments and unproductlve
enterprises"
FINALLY. he would have American d.
plomacy proceed on the basis OF the
kellogg pact, recommending adherence
to the World Court, full cooperation In
the economic councils OF the League OF
Nations, and the cancellation OF Euro
pean war debts on condition that the
armed forces Of the world be reduced to
q police basis.
This is the answer which he believes
capitalism should and must make to
combat organized Communism.
I'm due time" Dr. Beard writes,
America will arise, shake OF her leth-
argy, and put forth powers like those
of our ancestors who founded this Ma
ton and conquered this continent"
The article Is bound to cause wide
spread discussion.
Business Index.
The Brookmire Analyst says that its
business index for May was 74.6 per cent
of normal, as compared with the April
figures of 77.7 per cent. The estimated
May position Is only Ia points above
the January low.
I'VE have repeatedly emphasized" the
Analyst says, that the minor advance
in business as shown in our index since
January is of little significance except
as an indication that stabilization has
finally been effected and that some
progress Is being made along the bottom
area of the depression"
The Brookmire'S checkings show that
the May relapse was due largely to the
decline in retail trade and in railway
traffic, supplemented somewhat by the
declines In automobile production, pig
iron and steel mill operations.
How severe the business decline is
may be realized when the latest report
shows that the steel mill operations are
about 40 per cent of capacity, as COM
pared with 10 per cent this time last
year. This represents a decline of 2
points from the previous week and Is
the lowest since early in January.
What is the outlook for steel stocks?
Brookmire answers by saying that on
the present reduced volume of business
and low prices which now prevail "it
is doubtful if even the best situated
steel companies can show profits on
their common stocks"
The stock market reflects this posi-
tion.
Shallow Thinking.
George E. Towle, Minneapolis invest
nient banker, thinks that the speed Of
today has induced shallow thinking.
He says:
l"There are three fundamental basic
requirements needed to sustain human
1ife-food, shelter and clothing.
1.-The average man in his lifetime
meets these requirements and other re-
quirements incidental to life and gath
ers into his possession comparatively
small margin above them, stated to be
less than $4,000.
Two simple. words express the divi-
sion Of life effort-utility and hilarity.
Utility causes two blades of grass to
grow where one grew before. Hilarity
does not grow any grass.
."It is authoritatively stated that we
have one automobile for every four and
ofle-half human units. The automobile,
as we are using it, Is about Is per cent
utility and rs per cent hilarity. In
capital investment requirement., it rep-
resents more than one-half Of the Sec
end Observation-Disclosures. Its deprecia-
tion, maintenance and operation cost is
oyer one-half of the first requirement
feod.
f"James J. Hill discovered that great
basic principle in railroading the ton
: mile and revolutionized the business.
We can daily see millions upon millions
Of automobiles flying by at 80 miles per
hour, carrying 165 pounds of human
matter to its Job, with big percentage
pnnching a clock when he or she gets
there, and other millions on the go,
whose destination Is nowhere This Is
, the dollar and cents view only.
"But another bigger picture Is this