Evening star., 1933-06-18
AUTO GAINS SEEN
/. BY INDUSTRY HEAD
AIvan MacauIey Predicts Up
trend Shows Signs of
Prosperity's Return.
Special Dispatch to The Star.

Special Dispatch to The Star.
DETROIT, June 17.-As predicted for
two successive years, but deferred until
this year, automobile manufacturing at
last has gained the key position in
which it may well prove to be the domi-
to normal employment and a conse-
quent revival Of prosperity in the United
States.
This Is conclusion to be drawn from
talk with Alvan Macauley, president
of the National Automobile Chamber Of
Commerce
In his official capacity Mr.. Macauley
has access to facts and figures covering
operations of the automobile industry,
as affected by supply and demand, that
form picture viewed by few aside from
himself and others associated with him
in the inner councils OF the worlds
greatest business.
Manufacturing Shelves Barred.
The point Mr. Macauley makes is that
the severity VI tIle stump UdIeu JllC
shelves of automobile manufacturing
lied industries that feed it. to an extent
rarely, if ever, before known in the
three decades cars have been built.
Reserve stocks that were allowed to
pile up during previous periods OF de-
preston do not now exist for quick
marketing to fill the void left by more
than three years of deferred buying.
Modernized factory practice has no leaf
in its book that permits excess inven-
tories, either Of materials or finished
products, to lie idle in the warehouse.
Like the automobile makers, the sup
pliers Of materials, in both the raw and
semi-fnished form, have allowed their
inventories to be nquidated to mini
mum. There are few accumulated
stocks Of steel and iron, rubber, plate
glass, leather, aluminium, copper, tin,
lead, zinc, nickel and many other COM
ponents Of the finished vehicle that the
builders can requisition by wire for
quick shipment.
Denuded of normal plant reserves,
the afiliated industries are being forced
all the way back to the mine, the for
est, the loom, the tannery and the
plantation for what they need to I'LL
orders for motor car factories.
Therefore, Mother Hubbard's poor
dog, otherwise motorized America, must
wait for its bone in the form of new
cars for replacement, whenever its
hunger becomes ravenous, as 1t GER
tainly will.
Supply Out Long Time.
"Only a few days ago." Mr.. Macauley
said, IAN order placed with our own
factory designated a certain kind of
nght-colored upholstery. The regular
source Of supply was asked for it and
the answer was that it was all out
and had been for long time. To
get 1t, the supplier said, his firm would
have to go right back to the fleece on
the sheep.
Most Of all, however, the future re-
turn Of activity will be felt in the
In confirmation of this, Mr.. Macauley
cited Iron Age for the following:
Stocks at the steel mills are ex-
hausted All steel now ordered must
be rolled. Stocks in warehouses of
jobbers also are exhausted. All finished
steel stocks in the country, including
steel made for individual projects and
not yet used, and steel in the hands
Of individual consumers, are go per
cent under the five-year average from
1924 to 1923.
"In some cases steel and iron are
being trucked to automobile plants
from the mills. Shipments by truck
are being made from as far as East
Chicago and Pittsburgh In efforts to
meet demand quickly.
Much Labor Provided.
"On the authority of calculations
made by officials of the Bethlehem
Steel Co. 1t is estimated that the man
ufacture Of every new automobile pro-
vides so hours of labor for the steel
industry"
Turning up report from Packard's
traffic department, Mr.. Macauley point
ed to this passage:
Railroads have been forced to dou-
BILE the time for freight shipments.
Where we could expect shipment in
one week formerly we must now wait
two weeks. This is because Of the load
thrown on the railroads by increased
business"
(Copyright, 1893, BY North American News
paper Alliance, Inc.)