Evening star., 1941-07-06
By JAMES FREE.

h& (VHo Vi hAalb VI t4Ay 1V,OVS
persons in automobile and related
industries of the Washington area
are threatened by drastic changes
that appear imminent, according 10
authorities here
More than half of the 10000 per-
sons are engaged in some phase Of
the retail automobile business, In
which production OF new cars IL
expected to drop at least 50 per cent
in the next few months. These in
clude statesmen, mechanics and
ONCE employees of new and used
car dealers and workers in related
fields such as automobile finance
companies, accessories concerns and
wholesale jobbers.
The remainder make their liveli-
hood from gasoline stations in the
District and nearby Virginia and
Maryland. While there is no indi-
cation that the gasoline business
will be affected anything like as
severely as the retail car trade,
definite curtailment Of civilian con-
sumption in Eastern States may be
necessary because Of transportation
difflculties, Secretary of the Interior
Ickes and others have warned.
$500 900 Pay Roll.
Using latest available figures Of
the Census Bureau, the Washington
Automotive Trade Association esti-
mates that there are fully $500 per-
sons in and near Washington who
earn their living from the retail
automobile business. Last years
census reports showed 3.505 persons
so engaged in the District in 1899,
with another 1,026 in nearby COM
munities. Increased automobile reg
istration since 1899 indicates that
the 1899 employe totals have been
increased by IS per cent or possibly
more. according to oficials Of the
local association.
Census figures for 1899 show also
that gasoline stations provided Jobs
for 1855 persons in Washington and
1880 in nearby areas. While there
has been some increase in this 3,785
total during the past two years,
automotive trade experts here do
not believe the gain has been nearly
so large as has been the case in the
retail automobile trade employment.
The average annual pay roll in
the retail auto business in Wash
ington is about $4,000. 900, associa-
tion executives said.
Regarding the national outlook.
it was stated that some $50, 900
statesmen mechanics and ONCE
workers are employed ip the retail
car trade at an annual pay roll
of S525. .000, 900.
HArdships In Prospect.
Lee D. Butler, president Of the
Washington Automotive Trade As
sociation, pointed out that auto
mobile mechanics probably can be
absorbed into related industries
more readily than salesmen and
others in the automotive trade, and
also that there will still be cars to
keep in repair" But he stressed
that unless changes in the industry
are made carefully and as gradually
as possible. there will be hardships
in store for the thousands of per-
sons engaged in the retail phase
Of the business.
We know that some curtailment
Of automobile production must be
made in the interest OF national
defense said Mr.. Butler. This
must be done in. other industries
that use materials needed for de-
fense. All we ask is that the ma
terials left over after defense re-
QuTements are met be distributed
fairly and equitably.
We in the automobile business
are willing to make sacrifices, but
there Is no reason why any unneces-
sary or avoidable hardships should
be inflicted upon one particular
industry"
Used Car Curtailment Seen.
The Washington association has
had four conferences recently with
the National Automobile Dealers
Association discussing various
problems in connection with the
impending curtailments of car pro-
duction. according to Mr.. Butler.
He added that with the reduction
in the number of new cars on the
market, there probably will be
sharp decline also in the volume of
used cars. This will be due to the
tendency Of owners to hold on to
their present automobiles because
Of the difhculty OF obtaining new
ones.
The exact degree of production
curtailment has not yet been worked
out, but William S. Knudsen.
director general of the Once of
Production Management, told
leaders Of the auto manufacturing
industry here last week that in ali
likelihood it would be considerably
greater than the 10 per cent
blanket initial reduction that on
May the manufacturers were asked
to make on 1942-model output.
There have been no important
developments in the past few days
regarding transportation OF gasoline
to the eastern States. and q local
wholesale distributor said here yes
terday that supply shortages might
be expected beginning late next
month if the transport problem Is
not solved in the meantime Secre-