La Grande evening observer. (La Grande, Or.) 1904-1959, August 01, 1925, Image 11

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La Grande evening observer., August 01, 1925, Image 11

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Newspaper Page TextTHE LX GRANDE F-VENINT? OBSERVER 4. .Tourist Traffic and N ews Highway and Auto Dope ' 'J :rr SlSEBHSBHBSSlS Saturday, August 1, 1925. il MAKES I STUDY OF THE . d INDUSTRY 'Saturation Point Hetd a I Loni.? Way Off; Auto 1 mobile Stocks Not En I tiroly Safe Investments 1 at Present Time. n.M'.RON' IWItK, Mnm. (Speoliil) The llalison Institute lias heell maliiiu; :i slti.lv or -Hit- tiuhiinnliilo industry and Mr. Halison liu.s re- (:tSil ;( tljCSl or the eOllt'lllsinilS i.-aelied. Tin- olTirial SI a I emeu! is lollous: "I Im- most k:i lii-nf ur o I. li nt " " V present slu.ly ol' III" auto l.ile Industry is that its dry. loo. S mi ni has ill ri. .1 all prnplieis an, I ' : tl lost optimistic 5 hiiii'S. In tin- i-arly years or the I industry tin- auto was h.-liey.-d to 4 i.f fi'v a. rail to he owned iy Hi-. I wealthy. Ti nty-I'iye y.-ars alio .'.iitoiiu. Idles iw looked upon as u- cinisi.P r airplanes today. Wh.-n .3 11 finally was dlseoy.-red that the Ileal vain... lit ahout I Nil. saturation pond.' Kviy yoai' ! hauliers .slated that the lol- I lowing year miloimibllos would H I'1"'"'!' tli.'h' saturation point 1111,1 I tln industry would Infill to de I rlino. . or course no I rees Rrow to I Hi" skies 11ml some time the auto- nioliih. industry may teach Its luaiiuuin deyi -lopment. hut all the I I'essiinisls have lieen disappoini, d 5 up to the present time. The fol- H.wuii,' annual tiKtires on the pro I duelion and registration or ran .'how (lie situation tor 111 1 years: 5 l'i:om-fT(i. rass.-nner I'ars I 101 a SIS. 11 is 1.52.'.,f,7S I . 7 4 11. 7 ti 2 Lii.-.-.h-.l- l.ssa.ir.s i.rM.inui 2.4iiii.:i!h; ::.ii;i4.i'n7 :!.2'i:t.2S5 i:i:oimti!,tkinh, 3'asnelKer I'lll'S 2."no,i;i;ti :i.:;s7.i'!H 4.I1.M.340 r.. 1121. i;i7 II. 771.074 , S.22.7..S:V. ;.:! 4 ;. 1 ;r, i,sn4,i :s 1.-;. 47:1. en. s l. "1.41:0.114:1 "Includes Canadian production I'nwiil 'oililUhins In tin1 Auto Tries to Fly it finally was dlscovi-n 'J automobile had praet t 1 !mii bankers began in "'pi Mill I ''I U1 4 4 'i I 1 -tf 3c lch, This automobile tried to turn into .in air pinna in Clovol.intl. T!ie driver cw- rvc-O to tho euih to avoid a colUwion uinl lost ooniml.- The car leatK-d the curt anl alul straight up the Ruy wit a tcloplinne pole, slicking there when U had rcarhc-U '.he anyle shown above. ulmo.st ahlc to pay thnlp (llviilnnilit iiMTi'ty from Hu .salt' of parts and oUn'i- ju-orssory litif. Thfrt-fort? tho inilustry is here to stay and (s mailuaily getting on n sonnU bu.sia. (if cmir:i.', iht'iv will be ninny more consolitiaiions. There Is no sense in hiiviiig so many different makes of ears. Gradually these will be bronchi together and there will bo tVwvr companies, resulting in re diiei ,i s.-liiiiK and ndvertising rosis, whirl are now a ureal fuel or. It, however, .should be remembered is past ten ing. Kperlenco Is very valuable, but like most valuable t hi nun is vt-ry costly. Kven though this in stalment business Is nert-ssary, his tory shows that in the early days of uny good thing it is always pushed too far and overdone. This instalment business is the weakest feature in the automobile structure at the present tmie. The Auto Trm-k lndttslrv. "In the early days the automo bile Indust ry consisted most ly of pleasure vehicles and th'M of course are now the backbone of the industry. then the manuiac- aUd Is the efiert th;t the avtlo- f mobile Is to havf on our cities. W-t eomphiii) ((bout the congestion of our cities, but as yet very little has been dom tu prepare for 11, Ve established pai kliiK rules und regu lations, but the real problem has not yet been solved. This solution will come about lhrouh elevated sir--rts. especially at important jum tiors. which may make cor ner lots the baft valuable instead of (lie-mosr valuable as at pre.s .ut. The automobile wilt rvmlt in the development of subsidiary busi ness i-eine?-s in the outskirts of ev t ry city. -Many believe that no more big department stores will be built in our hur.e cities and that the, automobile will ultimately revolu tionize i-etuli trade. Hurely alter nate routes of travel will be de veloped: routes which ure now lit tle used will shure the traffic with the streets will be cut through In our cities and many similar things will h, done. This means that there arc t reuieiidous opportunlt ies for nroiit in connection with real es- in these new (tistncts wmep automobile congestion will develop and a real chance for loss by the present owners of the best corner lots. The automobile is here to stay; the industry Is beginning to e s:abilh;ed although it bas kcv ral more stages to go through; real profits have been made both In the Industry ami anted lines; but tht greatest profits of nil are 'inning later through the retmiPi- ing of our cities and the operating of new arteries. Here is where the il opportunities will be for mak ing money via I he uutomomie. business continues with but Hill variation and now stands, by the lliihsonchart, 1 per cent ubove nor mal." 'Motorists Must lie Prolecled From Excessive Rales, Says Chrysler, W 1 0 1 a llil'i l!ll" mis 1 !i 1 '.I 10211 I'll'l 111 2:1 111 7 1 !1 1 S Hi l!l 1 irjo uriyiiig the trend of ot her prod- uci.n. nere in ine euf or mosiitl,r(1 nf ,-,.v .l.-.ir...,.rl .....i hnanufacture.l articles the pur- (uy the horse is very largely dis- jenaser is geiung less lo.iuy Tor a placed; but in tip far the truck bul ;'iHr than be .lid ten years ago. ni.8s llHs n,.v,ir Tvach..tl thl. ,ir0 .'; ?!!! ""' ,t'v,-rst' is tri"' ln w f portions expected. The most luc- only is the ra,vo fiel(1 ut tlu. mom,., is tilt, amomuiuie improved every :ti;,:n; t aL'2,n:if :i7l.:il7 Trucks 1 Hfi.OOO 2 ) fiJMUt .'iLi.eon rilTi.lMiO 7H4.3 7 2 1.(hh;.os2 t.i I K.r.2i) 1.37ii.7 25 i.ui2.r.(;! cade. " f course, condit ions are ery different t lian they were a few years ago. Trices are being rut. (ss1m are being cut, less money is being spent on advertising and sell ing, there are fewer changes in models, consolidations are taking plaeeiind various other factors are developing which are unpleasant In many people. On the other bund these changes nro mostly for the benefit of the consumers ami should ultimately ge good for Hie indnstry. This nil signifies that th business is becoming stabilized. What was once JL luxury, has be come a necessity; and what was one. a fad, is becoming a staph'. This men us that there are smaller proi its. but that ihe business is on n much sounder basis. The fact bas also been proven that 'one an auto, always an auto. which in-.- i:re'4 repeats and replacement nr h is. The new generation of young P'oplr is being brought up with th" Idea that an automobile is as necessary as a sewing mac (line or n bathroom. 'Consider the fact that about two million people are being- born very year in the I'nited States, iiMd the average' life of a ear is not over seven years, it will be seen 'hat the replacement automobile business has great possibilities. Tt is said tluit certain companies are " -iito or motor coach industiv. The mil prices are declining notwiin-, white Motor companv or Cleve standing the reduced purchasing ,aml a!,onU pivt.n ,jlo mM!l, fur power of ihe dollar. (putting ibis business on its feel. wuiioi.K ior .111101110111:0 mocks. j.eh(.y Wl.rt. followed by the 1 He above comments apply to the industry and not to the stock Al.TtfU P. CHKYSLEIL Vrcs- ident' of the Chrysler Corpora-1 tion, who evolved plans for the marketing of Chrysler motor cars winch protects tin jutnliaser from exces-sive! Ilnancing cliures and excessive insur ance rates, is determined that those who buy ears hearing Ins name shall have them ut the lowest possible; prices. For many months Mr. Chrysler made a comprehensive study of the sale of motor ears. Finally he came to the ()nclusion that too muth moiiev ws beinir paid lor linancittK atul in- great through routes. New I surance requirement-. Alter further Sllluy .ir. inrysier uecuirn inuv iot j one way to etl'cct a substantial in ing of from !I0 to M per cent of .the combined cost of financing und of fin and theft insurance rates, was to lake advantage of the mass purchasimr power of the Chrysler Corporation. l ne puune must ue proiecieu iruui excessive rates, commented .ir. Chrvsler, In New York. "At the fac tory we watch the expenditure of ev ery cent. Keen competition necessi tates that cars le placed in the hands of the ultimate users at the lowest possible price, Whv then shouldn't we be equally diligent in saviu; purchaser everything we can. Custom-lttillt Franklin Cn'ntiM Sensation AinolifT Oie eu.stom-built nuto nuihlles made liy the Cnslom Hotly Division or the Kranklln Ailtomo l.ile Coinpany. is a closed Sport lliinaliont made for the petnonnl use i.r 11. H. I'Vanklin. I'residint of Die Company. It I'.- tliif' s ernlser lines elinr- Motor Bargain ..:........a...?o.to 2"c or 3 I'm- 7"'; I.i!i"! ."0c; Small "5c 30x3 5 Cold Tires Koycitoj -r Cold Patch Outfit Liquid Solder Graphite Grease, 1 lb Spark Plugs Come in and have u talk villi,urf. Highway Service Station East Adams Ave. K. iC. CAREY, Mj;i'. the U. KV. w.ti.rrn i ennvsuut cision we salisfnd ourselves of the aliMtlute leeal and econumic souikU ness tf our plans. "Some opposition to the plan has We believe linancing charges find -mute from a few insurance airints insurance rates have been too highland state insiirnuce einuutvsinners of and so we determined to reduce II- several states are looking into the df nanring charpes nnd to market our'tails vt our dnn. In view of the nev cars fully covered by lire and theftjaml unique features of this plan, insurance, lief ore reaching this de-JiioUiiug less waj to lie expected.'' acterlstto of Franklin's two-pws-senger open model, and Is said to be the lowest in over-all height of any iiutomoblle ever made. The ear Is being exhibited in an elabor ate display of custom and standard cars finished in special color com binations, which is now open at the Franklin factory for the inspec tion of dealers ami their custom ers. This enclosed itunabout has caught Ihe fancy of many visitors. Ralph lamlin, l.os Angeles deal er, placed an order for a similar custom-built car for his own per sonal service. If France really wants to stand off the ) tiff kins, she should send some of these commissions t hut have been making arrangements to pay war debts. Omaha World-Heiuld. USED CARS s For Sale or Trade LOOK 'EM OVER "Everybody Drives a Used Car" HARRIS FRENCH 1113 Washin'rton Ave. market. Our investigations ure in connection with the manufacture and distribution of automobiles. Therefore we perhaps should say noihing regarding the securities of the companies, 1 however, wish to make this comment; namely, thut it is very dangerous to consider automobile stocks as a group. Kaeh individual stock must stand on lis own basis. Some will go to higher figures, while others will decline to nothing. .Many of the keenest bankers believe that automobile sioeks. taken as a whole, art too biuh at the present lime, and 1 am inclined to agree with this diagnos is, on the other band, if the ex pected consolidations take place, t be surviving companies should profit greatly thereby. The auto mobile industry is a good deal like the copper industry. J'toth indus tries, as industries, are perfectly sound; but when investors bet on any one coinpany they run consid erable risk. .Moreover, statistics st rongly indicate that ihe copper stocks, as a class, are a safer bet than the automobile stocks at the moment. "The most dangerous factor in the .situation today is Ihe tremend ous purchase of cars on install ments. This seems to be the inevit able and doubtless Is a develop ment which will always continue in the industry. These instalment purchases, however, have resulted in the tying up of a lot of money, which in not a healthy condition, so that some automobile companies are doing almost, a banking busi ness without federal or state super vision. This instalment- business is the cloud in the automobile in dustry today and on account there of some, companies mny have much trouble ahead. It is a new busi ness, which means there is still a lot to learn and hence some must sillier during the process of learn? The New Four-Door Brougham on the Famous Hudson Super-Six Chassis is here. , You arc cordially invited to take a ride in this new Hudson creation. Ledbetter's Garage .Mack people and t)ie Fierce Arrow Motor Car company ami several other companies. Then the Yellow Tub Manufacturing company of Chicago took it up. which company is now being taken over by the (J en era 1 Motors company. Without doubt ihe auto bus or 'motor coach,' as it is now called. Is destined to be come a great factor in transporta tion. Not only is it the salvation of street railways adopting it. but it also will be adopted for its as sist a nee t o st ea m ra 1 1 roads end mast mercantile houses. The mo tor coach lias a great future pro vided the manufaetuKers of these busses and coaches do not kill the goose which lays the golden egg by supplying 'auto bus bootleggers' with their wares. "liy 'bootleggers' I mean auto bus owners who are operating con trary to law or without proper licenses. Owing to the sudib-n de velopment of the industry, many states have not proper laws, while other states, which have acl ive laws, have not the machinery to enforce 1 hem. The established railroads and street, railways are operated by Substantial interests who will not operate motor coaches illegally and without licenses. While these established railroad and street railways are endeavoring to .secure licenses, these, 'auto bus bootleggers' are undermining rail road and street railway Invest ments to a most amazing amount. This Is causing a very dangerous sit nation, and if continued too long may bring about a panic in transportation circles. Just as the rail roads and st reet rai 1 wa ys a re becoming rehabilitated, it is crime for the automobile industry to al low these boot leggers to rob the already established menus of trans portation. Moreover, the future of the Industry lies with the motor coach manufacturers. J f 1 hese manufacturers would refuse to ei to these bootleggers, then the in dustry would soon be put on a firm bnsls and everyone would profit thereby, including the pub lic. The present plan of manufac turers selling motor coaches to one who they know will operate them illegnlty. against 1 he interests- of established transport at ion cpni- , pan ies who are endeavoring in obey I the law. is immoral, unjust and I short-sighted. Oilier Features of Industry. "The automobile indust ry ban done very much more than manu facture of motor vehicles. It has revolut Ionized our liighw ivs pp.f has created a great road building industry of which man n'ver be fore dreamed. It has developed the oil business to proportion? which the Rockefellers, in tin ir most optimistic moments, never believed u oil Id he possible. If j.S the great backbone tn.hi v of lb" Steel business. Rubber, which twenty-five years ngo was used only for wearing apparel and tips of pencils. Is todav the bais of a t rente ndniiH indust ry wii h ra m if 1 -rations (ill over the world. There are scores of oilier instmreji where industries have b'-.-n revolutionized And greatly aided iiv the deeiop m iit of the automobile. It is taid that more cotton lodav is goint In to ' lr-s than Into drrve-s, while the manufacture of paint. artl'Vu leather anil other products n. 1 In Ihe automobile industry b' . ) :i turned topsy-1 urvey by ' !m- ;mio niobile chemical engineers. "The o'her great factor which IE 'J' TC 0 A mn oumc Many I s ' ' ' 1 1 improvements il Including i ROOMIER BODIES GREATER LEG ROOM NEW COLORS AIR CLEANER COINCIDENTAL LOCK with TIONS .Harris ;F 1115 Washington Ave. On All Models See the cars for yourself and get the new prices at French Phone 441-J j ran (')I!) ft m i ,..!;j: ( ?' J : has not et been fully appr-ej.