THE 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.