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diff --git a/old/66607-0.txt b/old/66607-0.txt deleted file mode 100644 index 994848a..0000000 --- a/old/66607-0.txt +++ /dev/null @@ -1,7014 +0,0 @@ -The Project Gutenberg eBook of Story of the automobile, by H. L. Barber - -This eBook is for the use of anyone anywhere in the United States and -most other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms -of the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you -will have to check the laws of the country where you are located before -using this eBook. - -Title: Story of the automobile - Its history and development from 1760 to 1917 with an analysis - of the standing and prospects of the automobile industry - -Author: H. L. Barber - -Release Date: October 24, 2021 [eBook #66607] - -Language: English - -Character set encoding: UTF-8 - -Produced by: Charlene Taylor, Brian Wilcox and the Online Distributed - Proofreading Team at https://www.pgdp.net (This file was - produced from images generously made available by The Internet - Archive/American Libraries.) - -*** START OF THE PROJECT GUTENBERG EBOOK STORY OF THE AUTOMOBILE *** - -Transcriber’s Notes: - -Italic text is clothed with _underscores_. - -The spelling, hyphenation, punctuation and accentuation are as the -original, except for apparent typographical errors which have been -corrected. - -The wide table of Curb Market trading for years 1906, 1909, 1912 and -1916 has been split into two, vertically, the first displays the years -1916 and 1912, the second half displays years 1909 and 1906 for each of -the three folio pages. - - - - -[Illustration: BENJAMIN FRANKLIN - -FIRST GREAT AMERICAN TEACHER OF THRIFT AND INVESTING FOR PROFIT - -CHARLES E. DURYEA - -MAKER OF THE FIRST AMERICAN GASOLINE AUTOMOBILE THAT RAN - -HENRY FORD - -FATHER OF QUANTITY PRODUCTION OF THE AUTOMOBILE] - - - - - Story of the Automobile - - Its History and Development - From 1760 to 1917 - - With an Analysis of the - Standing and Prospects of - the Automobile Industry - - By H. L. BARBER - Economist and Financial Writer - Author of “Making Money Make Money,” etc., etc. - - CHICAGO - A. J. MUNSON & CO. - 1917 - - - - - COPYRIGHT, 1917, BY - H. L. BARBER - - - - -PREFACE. - - -So far as I know, there is no book in circulation that tells, in -concise form, the story of the mechanical and commercial evolution of -the automobile, mirrors its sudden leap into popular use, and shows how -it has demonstrated, in a most amazing way, the power of money to make -money, describes its benefits to the world, and forecasts the future -possibilities of the automobile industry as an investment. - -This book, the “Story of the Automobile,” shows the struggle of man for -one hundred and fifty years to devise a means of propelling a vehicle -without animal power. - -It describes the various stages of the evolution of the idea of motive -force other than animal power, in France, England, Germany and the -United States, and its triumphant culmination in a successful horseless -vehicle. And it makes clear how, when the automobile became of -practical use, its successful commercialization became most profitable -in the shortest period of time of that of any product of man’s -ingenuity supplying an article to meet human wants. - -But if this were all that could be recorded of the story of the -automobile, this book would not have been written. The automobile’s -success demonstrates all this, and something more—something that would -not ordinarily occur to a person unless his attention was called to it. - -The astonishing history of the automobile’s success affords one of the -most convincing and the best modern instance of the opportunities that -are being constantly presented for investing for profit. - -It is a signal example kept in our hearing every day by the -Niagara-like roar of the cars along our boulevards, of the fact that -this is the age of golden opportunities for making money make money—of -opportunities that disclose themselves, sometimes unexpectedly, and, -when embraced, are apt to respond with a veritable avalanche of profits. - -For was it not an avalanche of profits that overwhelmed the man who in -thirteen years made $200,000,000 and was offered another $200,000,000 -for only a small part of his business? And this great fortune made by -Henry Ford did not exhaust the Ford automobile’s possibilities, for -millions are still being taken out of the business, one investor of -$2,000 having received over half a million dollars out of it lately. - -When men who are not 40 years old today came out of high school they -either did not know what an automobile was or, if they had seen one -of the very earliest samples, they had no vision of what it would -develop into—no conception of what the future had in store for the -wabbly horseless vehicle, zig-zagging down the street, as a potential -money-maker. - -And in the early days of the automobile’s struggles for recognition as -a promising investment, no banker or other moneyed man could be brought -to believe that it held out any reasonable hopes of great gain. No one -could foresee, not even the inventors of the automobile, that in less -than two decades the business done through its comparative perfection -would rank fourth in order of the industries of the United States. And -still less was there anybody so foresighted in the possibilities that -lie in money to make more money, as to vision the billions of dollars -of profits to be paid out by this one idea of a horseless vehicle. - -We can find few instances which so forcefully show, as the automobile -industry shows, the chances for profitable investment in a short time -which may come from sources supplying the needs or pleasures of the -great mass of the people. - -The chapters of the “Story of the Automobile” devoted to its -commercialization make clear that its greatest success has been due -to the production of automobiles at a price within reach of people of -ordinary means. For this the one man most responsible is Henry Ford. He -has demonstrated in a manner of many millions that the most money is to -be made out of things used by the greatest number of people—things that -become common needs. - -The enduring truth of the profitableness of Philip D. Armour’s -apothegm, “Make and sell things that are ‘et’ up,” is not discredited -by the automobile industry, for the use of the automobile “eats” up -steel, brass, wood, rubber, leather, gasoline and many other natural -resources. The automobile wears out and has to be replaced, so it -properly comes in the category of things “et” up. - -This truth, that the greatest profits lie in products that can be given -general distribution, with a consequent large sale, which is one I -have maintained in my book, “Making Money Make Money,” in my magazine, -“Investing for Profit,” and in all my teachings on the science -of investing, finds a splendid exemplification in the automobile -industry’s success as a phenomenally profitable form of investment, and -the circumstances of this success are but cumulative evidence of the -soundness of my doctrine. - -And the success of the automobile industry in the measure and with the -speed it has achieved verifies not only this claim I have made and -maintained, but confirms my contention of the value of co-operation. - -I have preached co-operation as urgently as I have advocated, as the -best objects of investment, the value of things used popularly and in -quantities. - -The “Story of the Automobile” could not have had written into it the -glamour of the golden guerdons of Golconda but for Ford’s idea of -quantity production, reinforced by co-operative standardization of -parts. Co-operation between the manufacturers produced standardization, -and standardization enabled quantity production, and the low price -which quantity consumption warranted has caused automobiles to be -bought by millions, and the purchase of the automobile in millions, -instead of thousands, has made the hundreds of millions of dividends -which this wonderful mine of profits has yielded. - -The “Story of the Automobile” is one of the best and most notable -proofs of two of my convictions bedded in the concrete of experience, -namely, that the most promising investments are those made in natural -resources and enterprises which the largest number of people can -patronize, and that co-operation is one of the most effective forces -in nature, and, therefore, applicable to the affairs of men as a -beneficent influence, and, if efficient, the handmaiden of success. - -The story of the automobile has herein been treated in a way that not -only presents a graphic relation of the automobile’s development as an -invention, its commercialization, its benefits to man and the position -it occupies as a notable example of earning power, but in a manner that -develops the many morals taught by its success. The method of treatment -of the subject matter is uncommon, and, for this reason, interesting, I -trust, to those who read the book. - -The chapter contributed by Mr. Edward G. Westlake, automobile editor -of the _Chicago Evening Post_, is a resume of automobile conditions -from the intimate viewpoint of a writer who has specialized in the -automobile, and enjoys a deserved reputation as the dean of the -automobile editors of the daily newspaper press. Every one interested -in automobiles will derive information and entertainment through -reading Mr. Westlake’s presentation of the amazing features of -automobile industrial figures. In it he states interesting facts not -stated elsewhere in the volume. - -The book’s interest and value as a contribution to automobile -literature, of which there is not much in book form, would be less -than they are, but for the participation in its preparation by the -Business Bourse International, Inc., New York, whose vice-president, -Mr. J. George Frederick, is one of the highest authorities on business -economics. - -The chapter by the Business Bourse deals with the automobile industry -from the standpoint of the financial and investment aspects of the -automobile, accessory and tire manufacturers’ securities, and Mr. -Frederick’s reputation in the financial world is a guarantee of the -authoritative accuracy of the facts presented in this chapter. - -Credit for salient facts in the history of the automobile, obtained and -used in the “Story of the Automobile,” is given to a large volume of -nearly 500 pages, “The Romance of the Automobile Industry,” by James -Rood Doolittle, issued lately by The Klebold Press, New York city. -This volume is the most exhaustive work in book form yet published on -the automobile, and covers graphically every phase of its development -and popularization. It is virtually a textbook and reference guide of -facts of motor car history, and devotes particular attention to the -personnel of the founders of the industry and those engaged in it, and -the association features. - -I can only hope that the work entailed in presenting this, the -“Story of the Automobile,” has been done sufficiently well to make it -interesting and instructive to those who read it. - - H. L. BARBER. - -Wheaton, Ill., April 2, 1917. - - - - -CONTENTS - - - PREFACE 1 - - INTRODUCTION 11 - - - CHAPTER I. - - Introductory—Automobile Figures Are - Amazing 27 - - Industry reaches two billion dollar mark—optimistic of - future increase—point of saturation far off—reliability - contest a factor in popularizing automobiles—Ford, the - wizard who converted the industry to price reduction—installment - plan of payment—part machining plays in low - selling prices—women a factor in automobile buying—good - roads now the industry’s greatest aid—farmers as - available prospects. - - - CHAPTER II. - - Mechanical Evolution of the Automobile 49 - - First horseless vehicle constructed by Cugnot, a Frenchman, - over 150 years ago—invention traced in different - countries, down to the first successful gasoline automobile - made in the United States by Charles E. Duryea in 1892—prohibitive - laws in England discouraged invention there—Evans - in 1784 first American to experiment in horseless - vehicles—French and German inventors’ part in development—Selden - first patentor of gasoline motor—inventor’s - difficulties in interesting capital—electrics appear—steam - preceded both electrics and gasoline. - - - CHAPTER III. - - Commercializing the Automobile 77 - - Steam and electric types outstripped by gasoline car—co-operation - partly popularized motor car—standardization - enabled price reduction—tungsten and other alloys, heat - treatment of steel, advertising and invalidation of Selden’s - patent, in the industry’s development—reasons for United - States’ supremacy in industry. - - - CHAPTER IV. - - Automobile Industry As an Investment 139 - - Industry had little original capital invested in it—present - investment largely made up of profits—difficulties in getting - capital—dealers put up money to finance distribution—production - not reached its height—commercial cars and tractors promise great - opportunities—industry a surprise to economists—large as it is, - industry still in comparative infancy. - - - CHAPTER V. - - Benefits Conferred by the Automobile 155 - - A medium of exchange of knowledge and ideas by bringing - people together—uproots bigotry and removes prejudice—revolutionizes - thought and habits, and liberalizes - mind—emancipates woman from drudgery of domesticity—increases - social amenities—a health giver; saves human - life; aid in eugenics—stimulates better roads—saving in - war. - - - CHAPTER VI. - - Reports on Automobiles, Automobile Accessories - and Tire Manufacturers Securities - from a Financial and Investment Stand-point 171 - - Economic history, and its relation to stock trading in - the automobile industry—securities traded in on New York - stock exchange and curb—securities on exchanges in other - cities, and data for 1916—principal securities not generally - traded in—prices and terms—newer entrants—security - issues of tire companies—comparison of automobile with - other securities—present and possible future trend—graphic - charts and comparative tables. - - - CHAPTER VII. - - Passenger Automobiles Manufactured in the - United States 219 - - Range of prices in effect April 1, 1917. - - - CHAPTER VIII. - - Gasoline Trucks and Delivery Cars Manufactured - in the United States 231 - - Range of prices and other data prior to April 1, 1917.—Courtesy - of Everybody’s Magazine. - - - - -INTRODUCTION. - - -“What did Benjamin Franklin have to do with the automobile?” a great -many readers of this book will ask. - -Benjamin Franklin was many-sided, and he had a great deal to do with -much that affects the birth of the American nation; and if it had not -been for what he and other patriots, statesmen and diplomats did, the -automobile business might have been in this country today exactly what -it is in England today—and that is a very insignificant industry. - -Among other things Franklin was a signer of the Declaration of -Independence, and it was the American Revolution that made the -automobile industry of today possible; for, had there been no -revolution, we would probably still be a dominion of Britain beyond the -seas, and it is pretty certain that England would have had in force -in the colonies the laws she kept on her statute books until 1896, -practically prohibiting, by the imposition of excessive road tolls, the -use of the public highways to horseless carriages. - -For, strange as it may seem to us in this country, which Emerson -epitomized as another name for opportunity, the English horse owners -and people generally resented, as early as 1840, the progress -represented by the automobile, and stifled all development of it from -that time to a date when France, Germany and the United States had made -it a real factor in transportation. - -If, therefore, Franklin had not helped to free this land from the -British yoke, the automobile industry might have been in the United -States what it is in England today. France and Germany might now have -been doing the automobile business of the world, with England and this -country buying from them, as England and France are now buying from the -United States, whose automobile supremacy at this date is unquestioned. - -While the gasoline type of automobile today is the most popular, this -is not to say that the electric type is not a success scientifically -and commercially. Indeed, the future extent of the automobile’s use -for commercial purposes is said by experts to depend largely on the -electric driven type. - -And who will deny that but for Franklin the electric motor would not -have been, for it was he who wrested the thunderbolt from heaven, as -well as the sceptre of dominion over our land from the tyrant. Franklin -as the discoverer of electricity may well be accorded the credit -for the electric automobile, which has played no small part in the -development of the automobile industry, a fact which every student of -automobile history will concede. - -It is, however, on an even firmer foundation than either of the -causes mentioned that Benjamin Franklin stands as contributing to the -success of the automobile industry. The inventors could invent and the -manufacturers could make the automobile, but who, pray, was to buy it, -if it was to be in general use, if not the common people? And how, may -we ask, were the people going to buy it without money? - -As the great teacher of frugality and thrift, Franklin laid the -cornerstone, 150 years ago, on which the superstructure of the -American automobile industry has been erected. For, assuredly, -had the seed planted by him failed to germinate and ripen in the -American consciousness, we could as well have been today a nation -of spendthrifts as a people self-denying, thrifty and frugal. He -inculcated those principles of temperance and economy in the lives of -our forefathers which have been handed down to us from one generation -to another, to our advantage and as an aid to our saving habits, by -which we are enabled to buy automobiles. - -Many a motor car today owes its ownership to the teachings of Franklin. -Many an automobile buyer would never have become one had he not heeded -Franklin’s injunction, to “Remember, a patch on your coat and money in -your pocket is better and more creditable than a writ on your back and -no money to take it off,” and the investor would not have put money -in stocks of automobile companies if he had not learned the truth of -Franklin’s teaching that “Money makes money, and the money that money -makes, makes more money.” - -Franklin having done what he could to prepare American citizens to -economize and save against the day of the automobile, and to invest -their money in its manufacture, and the American citizen having -followed his teachings and accumulated enough to buy at least a Ford, -and perhaps a few shares of automobile company stocks, the man appeared -who produced the first gasoline automobile in the United States. That -man was Charles E. Duryea. His reputation rests on the fact that, -though there were steam and electric automobiles in existence, and the -gasoline motor had been developed, he was the first to put gasoline -motor and buggy body into co-ordination and make the first run the -second. To Duryea, the constructor of the “buggy-aut,” is accorded the -credit, by automobile history, of being the father of the American -gasoline car. - -Following Duryea by only one year, came the genius who put into -general circulation the universal car. - -A reading of Henry Ford’s biography discloses that his first idea, that -the big money was in production in quantity—that a million articles -sold at a profit of 50 cents each was a better paying transaction -than ten thousand sold at $3.00 each—was in connection with a watch. -Watches and clocks were the first things that Ford subjected to the -mechanical promptings of his boyish mind, and he had it all planned out -to make a 50-cent watch before Ingersoll had conceived the commercial -possibilities of a dollar one. - -An accident which his father met with called him from Detroit to the -Michigan farm, and this accident deprived the country of a 50-cent -watch and gave it a $350 automobile instead. And most people will agree -that it was a fair exchange and no robbery. Thomas A. Edison, strange -as it may sound, was responsible for the practically universal use of -the Ford automobile, for he it was, who, by the chance remark, “What -you want to do to make money is to make quantity,” started Ford on -his downward price career. We have it from Mr. Ford himself that he -heard this statement by Edison, and that it so impressed him that he -made it the rule and guide of his life; that he never renounced the -idea. When, after building a motor that was a success and commanded -the attention and capital of moneyed men in Detroit, Ford formed -his first company to build his car, this great idea was obstinately -adhered to by him, and was the cause of his falling out with his -moneyed partners. They could not see the light which has given Ford his -halo—the great white light of quantity production. This light burns -with steady brilliancy because it is generated by the great principle -of the greatest good to the largest number. Ford’s associates in his -first company were not believers in this principle, evidently, because -when they fell out with Ford about it, and Ford got out of the company -to start the one he now controls, they went ahead making cars that -sell today for from $2,300 to $3,900. But though they have made fair -profits, they have not made the fabulous sums that Ford has, and one -can only wonder how they feel about it, and if they realize the error -of their views. They are probably wiser if not richer. - -The success of Ford’s idea of quantity sales demonstrates a great fact -in the affairs of life. It is that fields of human endeavor are not -exhausted or worked out until the human race has ceased to exist. Take -any line of enterprise you will, and it has as many facets as a prism. -An idea only is needed, which, if the right one, illustrates the -enterprise as lights thrown on the prism cause it to sparkle in many -colored rays. - -We think, for instance, that the acme has been reached in the making -and marketing of bread, but along comes a man with an idea for making -bread of bran, and he is immediately ushered into the inner sanctum -of the temple of great profits. Or we imagine that the last word has -been said in cereal foodstuffs, when lo, and behold, the man with the -right idea proves that the field has room and to spare for a financial -success in so simple a thing as rice dressed in a palatable and salable -form. And so it is in everything, automobiles especially. The man who -conceives the idea of a sport car supplies a want that others have -neglected. There may be many automobile tractors on the market, but the -human brain conceives one with some feature lacking in others, such, -for instance, as making a Ford automobile interchangeable into a farm -tractor, and it has an immediate and large success. And if anybody had -an idea that the profits from producing petroleum might be limited by -the use of gas and electric light, it was because the automobile’s -enormous consumption of gasoline and the use of oil by ships could not -be foreseen. - -The field for investment is kept constantly fallow, and ready for the -seed that is to fructify into great profits, by the human brain which -is ever active—ever thinking. If its product is not an elemental, -it is a supplementary idea, as the rubber tire, the demountable rim -and the self-starter for automobiles. Until the world has arrived at -perfection in all things, the ultimate will not have been reached. -The opportunities of today and tomorrow are as great as they were -yesterday. It is a question whether they are not greater, for if the -quotation ascribed to Emerson is true, that the world will beat a -path to the door, though it be in a forest, of him who makes a mouse -trap better than his neighbor, the future possibilities of enterprise -are favored by increased population and the element of the cumulative -nature of the wants of man. As inventions and articles of use increase -in number, new needs which demand supplementary products are created. -Each new thing given to the world brings in its train other new things. -The crank of a Ford auto creates a demand for a self-starter. The -increase in population and wealth brings in its train a multiplication -of human units whose use of created things is on a crescendo scale. - -The financial successes in the automobile business, great as they -are, have followed the inexorable law that the richest returns in -all investments are the ground floor ones. The history of no big -business demonstrates more clearly that the way to make money is to -invest in new companies when they are offering the first authorized -capitalization for investment subscription. Money-making opportunities -for new investors are always greatest in enterprises whose development -is ahead and in the future. If they have reached the stage where -development is already producing great profits, the door is closed to -the new investor, or else he must pay a premium to sit in such paying -company. - -In the ground floor days of the Ford money-making machine, Miss Couzens -“risked” $100 on Ford. That $100 produced $100,000 in cold cash. But -it did so only because the inception of the Ford enterprise provided -the opportunity. Having made its half a billion, or more, the Ford -enterprise is no longer enterable on any basis that would give such -returns for each dollar invested. When money is needed enterprise is -willing to pay liberally for its use. When enterprise has all the money -it wants, money’s value to it is less. This is the most natural law. It -is a law that operates in other things besides money. “He that hath, -needs not; he that hath not, wants.” - -The automobile industry illustrates graphically that when an enterprise -develops to the point where it is well grounded and has reached a -period of age and steady earning capacity, it is not new investors -who may come in and gather the richest plums, but the old ones, those -who helped to give it its start, who stood by it when the future was -obscure, and the ultimate outcome not certain. There is probably no -business that shows as many people in it now, who were in it at the -start, as the automobile business. This applies to manufacturers, -distributors and investors, and is, to a certain extent, due to the -industry’s newness. The original Ford investors are practically all -intact. It is the original investors who have reaped the reward of -their courage in embarking in new enterprise, and who have shared in -the division of the juicy melons the automobile companies have cut in -the form of huge stock and other dividends. We need no better proof of -the fact that ground floor investments promise the greatest returns on -money invested than the financial history of the automobile. - -While quantity production and the co-operative spirit which led to -standardization were the keystones in the structure of the present day -automobile success, the history of the successful development of the -automobile demonstrates another fact, which is a vital one in the -realm of investment. - -This fact is that most great financial successes are built on our -natural resources. This is peculiarly so of the automobile industry. -The steel, wood, rubber, leather and glass of which the automobile is -composed, are all products of the ground, the forest or the farm. It -could not be said that the products of the earth directly make the -profits of a stock life insurance company, but this can be said of the -automobile industry, and its history discloses that the automobile -business of the United States was four times rescued from failure, -first, by petroleum, for steam and electric cars would not sell in -quantities, and the gasoline from petroleum was needed to give the -automobile its great vogue, once by tungsten, vanadium and chromium, -again by the quantity production theory, and finally by co-operative -standardization. - -At one period of automobile development, the manufacturers were ready -to give up in despair because cold-rolled and high carbon steels -only were available, and these made the weight of the car and the -price obstacles to its popular adoption. At the stage when failure -to produce a car at popular price was imminent, there entered on -the scene tungsten, chromium, vanadium and aluminum, all natural -resources, and they, combining with standardization, made quantity -production possible. Tungsten, alloyed with steel for valves, chrome -steel for springs, vanadium in steel to impart purity, and aluminum for -lightness, reduced the weight of the automobile 25 per cent, enabled -motors to be made smaller, tires lighter, original cost less, and cut -down upkeep cost to the users of cars. Quantity production thus was -made possible, and natural resources again vindicated their claim to -being premier possibilities of profit. - -Of the future of the automobile and of products allied with it or -sharing in its construction and prosperity, as continuing money-makers, -all indications are that the profits already taken out of the motor -car industry in the United States are but placer croppings, and that -the years to come will record the workings of the real vein. This real -vein, in the opinion of the man who looks ahead, is in the use of -passenger cars, haulage trucks and motor tractors by the fifty million -of the population of this union of states who are on or of the farm. - -As yet, the farmers have not risen to the full possibilities of motor -power in economic superiority over horse power for haulage, ground -cultivation, and other uses to which the horse is now put. Elements -which will hasten this awakening are the scarcity of man labor and -the workings of the immutable law of economics. There is not enough -food being produced by the world to supply the demand. If there were, -prices would be lower. Prices will remain high as long as the supply -falls below the demand. As long as they remain high, the stimulation -to greater production will continue, and this urge can have but one -result, which is to force the producer to adopt the most economical -method of production. - -It has been determined that motor power is cheaper than horse power. It -is, therefore, only a question of time when the horse will go from the -farm as he is disappearing from the cities. In this evolution will be -found the money-making possibilities of investment in the motor tractor -and the motor truck. Their adaptation to the smallest as well as the -largest needs of the tiller of the land is now being assured. - -With the horse, the farmers of the United States have been able to -break up only 70 per cent of the cultivable land not in timber. There -are over two hundred million acres of tillable land that have never -felt the cold steel of a chilled plow. There are two hundred million -more acres in timber that will, much of it, ultimately come under the -plow. Besides crippling the labor supply in this country, the European -war has taken a million horses out of our supply. The case in favor of -the tractor coming ultimately into common use seems from all this to be -completely made out—its adoption in large numbers being only a question -of getting the price down to a basis which will insure quantity -production. As this was done with passenger automobiles, it would be -folly to say it will not be done with tractors and trucks. - -Figures showing the total amount of money that has been taken in -profits out of the automobile industry have never been compiled. It -is a business that has developed so rapidly and feverishly that the -water churned up by the commotion it has made has not yet settled. But -there is a record of enough individual instances of gigantic profits to -prove that the largest individual appetite for dividends should have -been satisfied by the ratio of earnings already made in automobile -manufacture. - -But in every case the greatest profits were in the stock of those -companies that complied with Edison’s rule of large money-making—“What -you want to do to make money is to make quantity.” And they were also -companies which made an automobile that could be “‘et’ up,” as Armour -put it, by time and use, in less time than it takes time and use to eat -up a higher priced machine. - -Ford, Overland, Reo—you will recognize this trinity as the leaders in -sales, and by the same token they have been the leaders in profits. -When it is stated that Henry Ford made $200,000,000 in thirteen years, -and was then offered a like amount for only a small part of his -enterprise, we may well believe that he credits his own statement that -“anything for only a few people is no good. It’s got to be good for -everybody or it won’t survive.” Other Ford investors profited on the -basis of $5,000,000 for each $10,000 invested. After the parent Ford -company had established a record of a million dollars a week in profits -in the United States alone, Ford stepped across the river into Canada -and organized a company there which is earning fifty per cent a year on -its capital of $10,000,000. - -Profits of $52,000,000 in capital stock alone which has been built -up almost entirely of dividends earned, is the record of the -Willys-Overland Company. John North Willys founded the success of -this great money-making business on his personal check of $500, -cashed at great trouble during the panic of 1907, when the Overland -company was ready to go into bankruptcy. Besides the dividends -applied to increasing the capital, an immense amount in profits -has been disbursed by this enterprise. The dividends in 1916 were -$11,000,000, over 20 per cent of the capital. This year they will -likely be nearly double that amount. The Reo Motor Car Company has -paid over $50,000 on an investment of $1,000. These three are not -by any means all the automobile companies which have contributed -to make the automobile industry a signal example of the earning -power of money, but they represent the leaders of the popular or -quantity-production-through-low-price type. There are about 150 -passenger automobile companies that are profitable in varying degrees, -proportioned to their price, not to say anything of trucks and -tractors, in the marketing of which fortunes are also being made. - - - - -CHAPTER I. - -INTRODUCTORY—AUTOMOBILE INDUSTRIAL FIGURES ARE AMAZING. - -BY EDWARD G. WESTLAKE, - -_Automobile Editor, The Chicago Evening Post_. - - -During the year 1916 the automobile industry in the United States -entered the “billion dollar class,” and manufacturers who have -membership in the National Automobile Chamber of Commerce which holds -the industry, as it were, in the hollow of its great hand, made no more -ado over this significant, almost amazing development than to meet in -the annual banquet and reiterate their statements that the critic did -not live who could predict, with certainty, the gain that might be made -in 1917. - -It was expected that the industry would climb into the billion dollar -fold—men said that the fourth industry in the country had the financial -stage set for starring the “Big Billion,” and they never permit -themselves to see a possibility of a recession unless steel becomes -too great to be kept within bounds—in short material price is the only -problem the venturesome automobile maker will put down for earnest -discussion. - -Accurate figures spread on the records of the National Automobile -Chamber of Commerce indicate that retail sales of motor vehicles in -1916 totaled $1,068,028,273. This total includes a production of -1,525,578 cars and 92,130 trucks. The passenger cars were valued at -$921,378,000 and the trucks were listed at $166,650,275. When the -statisticians of the national organization compared figures and found -the gain was 80 per cent, and paused long enough to find that the gain -the year previous had been 36 per cent, they talked about the complete -automobilization of the country and the inevitable addition of more -than 2,000,000 to the total of cars in operation in the United States. - - -PRICE DROP IN ONE YEAR. - -Weight decreased, as the engineers had planned, and the average price -of cars decreased in one year from $671 to $605. In the eight previous -years the average price of automobiles had dropped from $2,125 to $814. -Wall Street, which once had only the cold shoulder for the automobile -producer, took a permanent seat at the table where daily the industry -was dissected, analyzed, weighed, discussed and reviewed; and, as a -result, it is as difficult to keep from the financial eyes of Wall -Street the operations of the great automobile factories as it would -be to hide the clearing house reports. The keenest financial and -commercial experts of the United States have learned to keep the motor -car industry constantly under surveillance—not that they mistrust the -manufacturers, but that they have found the industrial situation is so -firmly linked to the dollars and cents program of the country’s economy -that nothing may successfully act to deprecate the importance of the -auto industry. Time was when General Motors sold as low as 40—what -Stock Exchange expert would expect to see this stock sell for less than -105?—and if conditions were to become so chaotic that General Motors, -with its prosperous units, were to break to a point or two under par, -what financial student would not search for something akin to a Black -Friday? - -Immutable laws work in the automobile industry. The maker daily takes -a course in the University of Production, because an army of selling -factors constantly is attending to the absorption facilities of the -country’s markets and he rarely permits himself the task of figuring on -the “probable saturation point.” It is a wonderfully important thing -to the maker that the national Organization gets official reports, -guides the policies of standardization, holds an indefinable influence -over the engineers of the industry, and sits as the congress of the -Republic of Motor Car Production. The auto industry of today is, -perhaps, the most intricate thing in the country, and yet so responsive -to the law of supply and demand that there is not an element of -guesswork in it. - -Although more than two hundred automobile concerns that had entered -the arena of business, developing from the “blue print stage” to -manufacturing concerns of considerable output, had failed in the last -twelve years, the automobile industry had been a big paying one. -Pioneers who remain and whose works annually pay dividends, accepted -the failures as the necessary concomitant of a great business that only -showed an output of 3,700 cars in 1899 and only 11,000 vehicles in -1903, the amount growing to 485,000 cars in the year 1913. - -“Our house is a generally well ordered one,” the maker delighted in -saying. “The industry is like a science. The engineer has brought -standardization to almost finality, the matter of styles and body -designs is an exact science, the tire companies have been keen rivals -but beneath their terrific competition they have permitted the stream -of co-operation in tire standardization to run smoothly, and the -manufacturer has spent his money wisely in equipping his plant with -plenty of large-quantity type of machinery and increased his plant -to enable him to handle the large production. Increased production in -economically managed plants spells the maximum of profit.” - - -POINT OF SATURATION FAR OFF. - -And with experts bold enough to say that the field of prospects facing -the industry numbers 5,000,000 probable buyers, little thought is given -to imminence of “saturation” and a consequent rehabilitation of the -motor manufacturing and distributing plans. In the plainest language -that it is possible for the automobile maker to use he says today: “The -maker who has an adequate organization and builds a pleasure car or -truck that is as good as specified and who permits no retrogression in -his organization, will succeed.” - -“Luxury and necessity.” The automobile maker is willing to have his -product classed in this way. For the early years of the industry the -car was a clear cut “luxury.” It weighed so much that its cost was -prohibitive to the big family of “Necessity.” The car simply had to be -“had” by men of large incomes. Automobiles were not sold by intensive -salesmen in those days—the family bought them, even as a fine jewel was -purchased at the great jewelry houses. Tremendous prices were paid, in -comparison to the set prices of the automobile industry at this day. -The “make” of the car that stood in front of the owner’s home often was -accepted as a basis for rating the social position of the owner. Seat -cushions, slip covers, fine upholstery and the name plate on the car -told a big and varied story. - -Immediately following the craze to buy the high priced cars, developed -the “man Friday” of the industry—the chauffeur. And the chauffeur -worked readily with the wealthy man, often advising the purchase of -the foreign machine upon which Uncle Sam collected a very large duty. -But the foreign made car had its stamp of distinction, perhaps much -easier to utilize in the form of extravagant, even snobbish, style -of life that the owner of the foreign car elected to affect, and the -United States manufacturer of cars was not at all prepared to put out -a car that would correct the desire of Americans to drive around in an -imported article. - -But the domestic car had a friend in this contingency. Economical -living was that friend. Ruin often followed the extravagance of -those who bought the high priced and, as many experts said, inferior -imported cars. Homes were mortgaged and all the financial trails were -traversed in the effort to maintain an impossible extravagant life. -The banker began to detest the automobile. It seemed to him that it -was undermining the life of the nation. Something had to be done to -correct, also, the tone of the domestic automobile maker’s life. He -developed a desire for watered stock. Over capitalization of his plant -was suspected by the banking interests, and on every hand the motor car -industry was decried. Waste and inflation stalked arm in arm through -many plants. It even was said that the industry was only a “game”; that -incompetent executives kept their eyes on the broker’s tape, while -corps of associates in the factories were ready to play the “game” for -all it would stand. - -Few were blind to the prospects in the motor industry at that time, if -the financial interests of the country were estranged; but no one was -able to withstand the developments. The fire of criticism cleaned out -the dross. Organization, the big thing needed to eliminate the “game” -and give the industry the foundation upon which the large “billion -dollar business” subsequently was built, began to come into being. Men -of energy and brains got to work. These characters have remained. There -are those veterans of the industry who say that the year 1907 marked -the start of the business on the basis of a real industry. In that year -44,000 cars was the total output, and the value of the product was -registered at $93,400,000. This was the highest total of value for the -output of the industry so far reached in the United States. - -The next year the industry built 85,000 cars, valued at $137,800,000, -and quantity production, efficient buying of material, strict -attention to cost production in the plants, effective steps toward -standardization, engineering methods that abolished a great deal of -weight, etc., began to be set standards among car makers. The official -statements of the industry show how well the improvements fitted in. -In 1909 the production of automobiles amounted to 126,500, valued at -$164,200,000. The following year the output climbed above the 200,000 -mark, and since then the production figures have mounted steadily. -Automobiles were _sold_ and competition became keener, but the output -increased. - - -VALUE OF RELIABILITY CONTESTS. - -With the new era of development in the early nineties came into -prominence farseeing manufacturers who paid heed to the thought that -the best way to put a fit and efficient motor car into the hands -of the public was to test the car, its material and its mechanical -practices, in some officially conducted series of reliability contests. -Besides, it was urged there was a “romance of business” attached to the -motor car industry that would lead to a greatly increased amount of -publicity in the press. - -The national annual reliability competitions grew into wonderful -favor. Makers strove hard to win the reliability titles. The “Glidden” -tours became the tests that attracted not only the attention of every -automobile man, but the general public. The whole country became the -testing ground. For several years these national events did well the -work they were expected to perform. Automobile building received, -perhaps, its most practical aid. Makers learned. They took advantage -both of the mechanical data and the publicity. A complex but valuable -adjunct of the national tours became popular—every region in which the -American Automobile Association was a factor, and this organization -continues to be a powerful aid to the industry, had its reliability or -its endurance classic. - -It has been said that the manufacturers of automobiles lost interest in -national reliability tours after the test of 1911. Perhaps many did. -But the truth, as told by a wonderfully efficient engineer, is that -there remained nothing more that a national tour could teach the car -builder. He had measured the power of his steel to withstand shock, he -had calculated the efficiency of his motor to stand its daily tasks on -a strenuous schedule, he had learned of the troubles of his rivals and -he had spent his money liberally, at the direction of his engineering -department, to make a car that would do anything a less skillful driver -than a national tour pilot could ask of the machine. The national tour -became a luxury. It was revived in 1913 on the long and strenuous grind -from Minneapolis to the Rocky Mountains, and an immense amount of -valuable information was the result. But the national tour seems to be -now chiefly remembered by the occasional discourse of an engineer who -tells of the long struggles in the mud and the hardships of sand and -dust storms. - -With the added development of the plants, came another reason why the -national tour was not necessary. Testing tracks were added to the -maker’s plant assets. Testing on the roads followed the block tests of -the motors, and it began to be accepted as an axiom in the industry -that the engineer knew to a hair’s breadth what his engine could do -before it went out of the secret room where the chief engineer worked. - -Meanwhile prices constantly were beaten down. The field of opportunity -to own a car widened. It was, even then, so much bigger, in comparison -to that in the Old World, that even the clerk and small salaried man in -general looked with a smile toward the day when he would own a car. - -It is recalled that when the manufacturer began boldly to put the -farmer in the class of available prospects—openly declared his idea -of building a car that he could sell in the agricultural districts -as readily as cars were sold in the city districts, one man who this -year is making 750,000 automobiles, gave to the world his edict which -resulted later in the United States court sustaining his contention -that the “Selden patent” under which the organization of makers was -maintaining its official life, “was not basic, in fact was not worth -the paper it was printed on,” and he would refuse ever to recognize -the right of the national organization to grant licenses to make the -internal combustion engine and the chassis that went with it. - -The public read with a strange feeling, the record of the great -litigation against the “basic patent.” It seemed like a battle of -Titans, and ordinary folk thought it might result in danger to the -industry. But only the lawyers were strenuously engaged. They argued -and submitted briefs for more than two years, the national organization -of the makers who accepted the license of the “Selden patent,” honoring -their national organization by paying to the treasury their pro rata -on the amount of cars made. - -An enormous fund grew. But the man who wanted to make from 200,000 to -750,000 cars a year was determined. He won in the Federal court and -almost immediately the “licensed association” began to break up. The -contributions of license fees ceased and soon the association was a -thing of history. It was succeeded by the National Chamber of Commerce -which has become the senate, house of congress—the parliament, if you -please—of the automobile industry in the United States. Some, there -were, who had a very poorly defined idea of the actual mission of the -“licensed association,” believing that it was a “trust,” called its -function destructive. They thought that the officers of the association -would lay an embargo upon certain manufacturers and allot a more -liberal figure on annual output to the larger and stronger firms in the -organization. - - -FORD, A “WIZARD” AND “GENIUS.” - -Unfortunately at that time, the licensed association had not the grasp -on patent protective measures, engineering work, standardization, -etc., that obtains in the present national organization, and the real -mission of the licensed association never became wholly evident to the -public. But the organization did its part in laying the foundations of -the industry. It made the handwriting on the wall for popular price so -large, that every man who subsequently invested a dollar in automobile -making read, pondered and agreed. It placed popular price and -standardization of mechanism in the same category—linked them so that -the words of the Detroit automobile manufacturing wizard became axioms. -The Detroit genius had proved that the depth and capacity of the -automobile market was exactly in ratio to the possible price reduction. -Amazing but true, the big men said, was the field that the lower priced -car opened to the thoughtful maker of cars. Manufacturers began to -talk of some day building and selling as high as a million automobiles -in one year. Others calmly declared that when the motor car sales in -cities began to “slow up,” there would be still more than 5,000,000 -prospects in the agricultural districts. Others drew diagrams intended -to show that there would be a market for any priced cars that were -built in this country, the few persons with large incomes assimilating -all the high priced cars, and the many with average incomes absorbing -the quantity production at popular prices. All allowances were made for -the increase in the cost of labor, materials such as steels and other -metals, leather, etc., and some even went far enough to include the -possibility of a foreign war on large proportions and its effect upon -the industry. - -No one gave concrete thought at that time to the possibility of a -skillfully conducted partial payment organization of a national nature -that would aid the small salaried man in buying his automobile on time -payments. But that came about and still is working out its part in -the great economic scheme of distribution of the factory output. The -makers did not essay digging into the dealers’ and distributors’ plans -for moving cars delivered to them for cash from the factories, and -they were not bold enough to say they could finance any time payment -and chattel mortgage plans. But many of them admitted the great value -of the plan, if a distributer, through a proper alliance with his -banker, could make sales in that manner and realize his money. The -public learned well, early, that the maker of cars rarely consigned -any automobiles to a dealer. The maker sold for cash—the draft had to -be presented by the dealer or distributer before he could unload the -freight car. It would be legitimate business, the public said, for any -automobile dealer to finance himself so that he could sell cars on -time. On time today is a mighty big phrase in the industry. It means -many a car added to the annual output. - -With the growth of incomes in the United States the statisticians found -there were more than 6,000,000 people in this country with annual -incomes of more than $1,200, and 3,500,000 with annual incomes of more -than $1,800. All these things aided in installing confidence in the big -men of the motor industry. Quantity production became the password for -the manufacturer. A new development in distribution was wonderfully -improved—dealers from all over the country were brought to the factory -of the car maker, and after a convention of a few days, the dealers -were invited to sign up for the coming year, nominating the number -and type of models they would buy. The maker pored over his order -blanks when the dealers left, made his plans for material accordingly, -and there was only prosperity in each automobile factory, as a rule, -for the remainder of the year. The orders were indicative of, safely -speaking, sixty per cent of the signed total. Some makers took chances -and built very close to the total agreed on by the dealers, and, except -in few cases, the scheme worked out. Today the maker studies all -conditions and accepts the orders of his dealers, setting the figure of -output after numerous factory conferences. - -Makers who could point to an annual production of, say 400 cars, -took counsel among themselves, and some 50 increased their factory -efficiency and financial responsibility that they can now point to -an output of as many cars in one day as they made early in their -manufacturing experience in one season. - -The writer recalls one manufacturer who, about nine years ago, had an -output of about 500 cars for one season. Only recently he paid close to -a quarter of a million dollars, if indeed his extra expenses did not -bring the total to $300,000, to conduct a twenty-one day convention at -his factory covering a site of seventy-nine acres, at which dealers -from the four quarters of the country were entertained. He had daily -meetings in the big halls of his administration building, and his -lieutenants carefully outlined to all the plans of the company for the -year, and exploited the line of models. - -“We have $30,000,000 in materials purchased, and expect to get all -this material when we need it for manufacturing cars,” said the big -man to his dealers. “But the war in Europe has caused many problems of -price and quantify to arise, and heaven only knows what the material -situation will be after July 1. I advise you to order all the cars -you need—think well of your requirements—and stick by that number. -Then you will not be like many are bound to be, who are indifferent to -manufacturing conditions—you will have cars to meet the biggest demand -the industry ever has known.” - -That automobile president had the pleasure of meeting thousands of -dealers, speaking to more than one thousand of them daily, and with -his factory production manager he figured the probable needs of his -country-wide organization of dealers and branch houses for the year. -It is significant that the few changes he made on his early winter -production table, which the writer was permitted to scan, were made -only in the “increase columns.” - - -THE PART MACHINING PLAYS. - -It would lead to the exhaustion of the reader were many details to -be given showing how the makers made quantity production and economy -of factory operation an assured thing. The largest rooms of wholly -automatic machinery were equipped, so that a large amount of crude -steel wires, rods, etc., practically go into a factory at one end -and come out at the other, fully machined and ready to go into the -assembly of a machine. Cylinder boring, all with one operation, takes -the place of operations that required many hours. Progressive types -of assembly of the finished components of the cars make factories look -like the “last words in manufacturing.” Machining crankcases and work -of that nature that required hours, is done in minutes. Aluminum, that -magic metal of the early days of the automobile industry, when it was -comparatively cheap, now enters so largely into engine and other parts -that at its greatly increased price it is more than a magic metal. It -is no uncommon thing to find in an automobile factory that a machine -costing more than one hundred times the maker’s cost of an automobile, -has been installed to hasten production. - -In all the field of manufacturing there has not been wrought such magic -as in gear cutting. Forges pound out tons of steel forms, but the most -important machinery of a plant soon has these forms turned into gears -and other machined parts for the assembly. - -The medium priced car of today stands as the best exemplification -of the approval of the Society of Automobile Engineers. This is an -organization that has done so much for the manufacturer that most of -the makers of cars are members. They point to the self-starter and -the electric lighted car as the triumph of the Society of Automobile -Engineers. And certainly from the original starter and the early -lighting effects, enormous strides have been made in the industry. -Fully equipped cars predominate now, where only a few years ago even -tops were not provided with the car as sold on the floor. - -The self-starter is considered one of the greatest of the improvements -added to a good automobile. With this feature the car has become so -useful to women that the manufacturers have realized big returns. -Better than that, say some critics, is the verdict that the -self-starter returned—the chauffeur is no longer an indispensible -feature in car driving. Women master the handling of a car and with -the machines requiring less mechanical attention, one might say, every -season, woman accepts the gasoline car as her own. The number of -women drivers has grown so wonderfully that the makers of cars have -registered the woman driver as a constant factor. There’s no cranking -of the car necessary, and the wearing of fine raiment and white shoes -is Milady’s prerogative, even if she drives her car to the party -herself. She handles a multi-cylinder car quite as readily and with -the confidence of a man. The tires, always a problem, have demountable -rims, or they may be set in spare wire wheels, and troubles on the road -from blowouts and punctures no longer deter the woman driver. It would -be difficult to get the details on the number of women drivers added to -the list each season, but one of the best known automobile makers says -that it is so large that he would make his fortune safe if he only made -cars henceforth for women pilots. The entrance of the woman in such an -important manner in the automobile driving situation has made the gas -car maker lose all fear of the greater development of the electric car. -Woman has played an important part in the real estate world, distinctly -due to her eagerness to drive cars, by starting a movement towards -suburbs. The suburbs are “farther out and yet closer” as one maker put -it. - - -GOOD ROADS INDUSTRY’S GREATEST AID. - -When the full effect of the work of good roads advocates is felt in -this country, and regular appropriations are to be available in a -regularly scheduled manner in most of the states, the biggest thing -the automobile industry ever had to help it will have taken up its -task in earnest. Less than ten per cent of the roads in this country -are improved, say the good roads statisticians. One says that at least -two-thirds of the reasons for present road developments are automobile -reasons. When the proportion rises and the Lincoln Highway and scores -of other long distance highways, intended to add to the cross country -touring practice, are made into complete roads that make for genuine -touring pleasure, the automobile industry will reap great benefits—more -than the most enthusiastic ever dreamed would come from concrete, brick -and other forms of specially prepared highways. - -The war? Makers have varied opinions on the effect of the termination -of the war in Europe. A majority have expressed the opinion that our -exports of trucks and pleasure cars will take a big jump soon after -peace is declared. But seeking for a peace after the years of warfare -has become the least of the American auto maker’s trouble. Great war -orders have been received and filled by the American makers of trucks. -In 1914-15 the war orders rose to 14,000 trucks, as compared with only -784 in the season 1913-14. War orders still are being filled by some -American truck makers, or were until the “ruthless submarine warfare” -broke out anew, and after millions of dollars worth of the old models -bought up in the United States and absorbed by the European powers had -been swallowed in the mystery of the continent, United States truck -makers began on later design models. In that way they are able to admit -that the war has been a great blessing to the motor truck feature of -the industry. “All a part of the great scheme of economics that makes -for the approach of the complete automobilization of the country,” is -the way one manufacturer puts it. - -The automobile industry is set—it is fourth in importance in the United -States. It will handle itself, so to speak. The makers know they must -give value for every car and truck they build, and the people have -become ready to continue in the industry every maker who plays the -industry as it should be—not as a “game.” - - - - -CHAPTER II. - -MECHANICAL EVOLUTION OF THE AUTOMOBILE. - - -The history of every advance toward greater perfection in the -achievements of mankind, whether moral or physical, has been one of -slow and laborious development. - -We speak carelessly of the wonderful advance the automobile has made in -a short time. - -As a matter of fact, it has taken the automobile a hundred and fifty -years to arrive mechanically at the point it has reached today. - -We thought the development of the motor car was speedy, but we find -that the measure of time required for its evolution, when put beside -the span of human history, lengthens as the shadows grow longer in the -dying day. - -It is astonishing what stages this development has had to pass through, -what problems have confronted it, and what apparently insuperable -obstacles it has had to overcome. - -In the light which our knowledge of the automobile now sheds on the -present day mechanism of this invention, it is difficult for us to -realize why these persistent struggles toward development of the -mechanical ideas summoned to the aid of the inventors did not produce -speedier results. - -We can hardly conceive as we look upon the perfect limousine, skimming -over the smooth asphalt with a motion that contains no more vibration -than that in the glide of the expert ice skater, the crudeness, -cumbersomeness and racking joltiness of its first forbear, which was -the original expression of the mechanical idea involved in making -wheels revolve by a motive power other than that exercised by man, the -bullock or the horse. - -If we want to relieve our minds of the strain of comprehending the -difference between the automobile de luxe, as we of today know it, -and the first automobile ever produced, and, by putting the two -pictures side by side, span the period of the development of the art of -automobile making, we must journey to Paris. - -For, although internal combustion to drive a piston in a cylinder was -produced with gun-powder in 1678 by Abbe D’Hautefeuille, and a carriage -to be driven without the horse was a chaise propelled by human foot -work, first conceived by John Vevers of England in 1769, there is no -record that the two ideas were combined until it was done in France -somewhere between 1760 and 1770. - -The first automobile ever made was that produced by Nicholas Joseph -Cugnot, a Frenchman, and it is today on exhibition in the Conservatory -of Arts and Trades in Paris. - -There is no record of how Cugnot came to conceive the idea of his -invention, but it is surmised that he had read about James Watt, in -England, having discovered the principle of steam as motive power. This -was about 1755. - -The history of Watt’s experiments in applying steam to run engines does -not, however, disclose that any engines he produced were ever seen by -Cugnot, or that any adequate description of them was published at the -time when Cugnot could have taken advantage of it. - -So all we may actually know of Cugnot’s reasons for thinking he -could make an “animalless” road vehicle is locked up in the rickety -century-and-a-half-old Cugnot invention which we may see in the Paris -Conservatory. - -And what we would see would be: - -An object which might make us laugh, did we not soberly reflect, in the -light of our superior knowledge of today, that it was the first step in -the long, laborious journey, extending over 157 years, that inventors -had to travel to produce our luxurious limousine, our satisfying -touring car and our terrifying speed demon of the oval racing course. - -Cugnot’s body returned to dust 113 years ago, but his idea went -marching on. - -The visible expression of this idea which we can see in the Paris -Conservatory is in the form of a tractor for a field gun, Cugnot having -been a captain in the engineering corps of the French army. - -The tractor has a single drive wheel actuated by two single acting -brass cylinders, connected by an iron steam pipe with a round boiler of -copper containing fire pot and chimneys. - -Attached to this first motor-driven road vehicle is a wagon, on which -it was Cugnot’a idea to have a field gun mounted. - -On either side of the single drive wheel of this clumsy contrivance are -located ratchet wheels. Pistons acting alternately on these ratchet -wheels revolved the drive wheel in quarter revolutions. - -For the copper boiler of this first motor car, additional water was -needed after the machine had travelled a few feet, the exhaust of -steam quickly leaving the boiler dry. The speed attained was very -slow, by reason of the mechanical complications in transmitting power -to the drive wheel. As for running smoothly, the machine wobbled, and -bumped, and strained, and groaned, and finally ran into a wall. This -was because it was overbalanced by its boiler and engine and had no -steering gear. - -Having run into a wall and been partially wrecked, that was the end -of the forerunner of the automobile, except for its subsequent rescue -from a junk heap and its installation in the Paris Conservatory; for, -disheartened by what he regarded as his failure to make a successful -steam-driven tractor to relieve men and other animals of the burden -of transporting field guns, Cugnot turned his attention to devising a -cavalry gun, at which he was so successful that when he died in 1804 he -was enjoying a pension of 1,000 livres a year, given him by Napoleon. - -Cugnot could not, of course, have visioned what his first crude -automobile would develop into in the next century and a half. He -probably never thought of a car holding seven passengers—much less of a -speed for it of 60 miles an hour and more. In truth, since he abandoned -his efforts, he probably concluded the obstacles in the way of even a -practical fulfillment of his idea were insurmountable. - -The one fact remains to keep company with the Cugnot motor tractor -in the Conservatory of Paris, that Cugnot was the father of the idea -out of which the automobile was evolved. He was the first to invent a -motor-driven road vehicle. - - -ENGLISH MAKE AUTOMOBILES ALMOST PRACTICABLE. - -The English people have an enviable record for successful mechanical -inventions, and they were early experimenters on lines similar to those -of Cugnot. About the time that Cugnot ran his machine into a wall, -William Murdock, a mechanic, was working for Watt, the English inventor -of steam. Whether he knew of Cugnot’s automobile attempt or not, there -is no evidence extant. The idea of an engine-run road contrivance may -have come to him through inspiration, or in some other way, as it did -to Cugnot. - -Murdock was quite familiar with Watt’s engines. He helped to build -them, and he was curious to know the different forms in which they -could be used, especially as to a road vehicle. He talked to Watt, -but was sternly discouraged by the latter. Just as Cugnot, no doubt, -concluded that his automobile would never get anywhere, Watt opposed -applying his engine to a road travelling machine, because he was firmly -convinced that no vehicle that could be invented could successfully -negotiate, at a speed to make it worth while, the execrable roads of -that day. - -In this we have a fine illustration of the peculiarities and uncertain -nature of the human mind. It is an organism that astounds by its -perception of possibilities in one direction, while numb of any -sensation whatever in glimpsing the possibilities in another direction. - -Watt could invent steam, but he could not imagine good roads. Had -he possessed the vision, he might have seen that roads, which he so -abhorred as to see nothing good in them, would be reformed if he but -encouraged applying his engines to road travelling mechanism. - -In William Murdock’s way of taking the doleful discouragement of Watt, -we see an illustration of that mental attitude that man has universally -adopted in mechanical advance, toward the lugubrious prophet of -failure. He has matched hope and optimism against despair and pessimism. - -Despite Watt and his mournful views of the impossibility of building an -engine-run road carriage that would advance over English roads, Murdock -went ahead and built a model of an engine-run road carriage; but when -he had it finished, Watt’s discouraging views prevailed, and Murdock -did not attempt to enlarge his model to a full sized form. He stopped -with the model, which is at the present day in the British Museum. - -Murdock’s invention was tested, and the tests showed that an advance -in efficiency over the creation of Cugnot had been made. The model -was driven by a single cylinder of three inch bore. It had a one and -a half inch stroke. A crank converted the reciprocating motion of the -steam engine into rotary motion, the service performed in the Cugnot -invention by the quarter revolution ratchet drive. Murdock’s idea was -patented by a man named Pickard, in 1780. - -The first automobile known to have been constructed and put on the road -was built by Richard Trevithick at Camborne, England, in 1801. It was -in the form of a stage coach, accommodating six or seven persons. The -engine, boiler and firebox were at the rear. The engine was one of the -first high pressure engines. A single cylinder motor was employed, and -spur gear and crank axle were used to transmit the motion of the piston -rod to the drive wheels. - -With this coach Trevithick carried six or seven men over hills for a -mile the first day of the trial. The second day it made six miles. Even -with these performances, the invention’s impracticability must have -been decreed, because it was not continued in operation. - -Trevithick himself felt, no doubt, that it must be improved upon, for, -in 1803, he built another contrivance driven by a horizontal single -cylinder with 5-1/2-inch bore and a 30-inch stroke. But the driving -wheels were ten feet in diameter. Fatal were these great clumsy wheels -to popular approval of the invention, and no further advance was made. -Trevithick had made one further step, and there the matter rested. He -had developed the high pressure steam engine, and he had really made -the first automobile, if such it could be called. - - -AMERICA’S EARLY EFFORTS IN AUTOMOBILE MAKING. - -Just as the English, represented by Murdock and Trevithick, were -laboring on the steam propulsion idea, and France, in the person of -Cugnot, was experimenting with it, so America was groping to find the -solution. Cugnot’s activities began about 1760 and ended with his -death in 1804. Trevithick’s period was from 1780 to 1803. The American -experiments started about 1784. The man whom records show to have been -the pioneer in practical excursions into the realm of carriages driven -by steam, was Oliver Evans, born in Delaware but living in Philadelphia. - -He developed the high pressure, non-condensing engine, although his -only knowledge of steam was derived from reading what little was then -printed about it, and his own discoveries. It appears as if Evans, -who is known to have had knowledge of Cugnot’s construction of a -road carriage, or, more properly speaking, a gun carriage, connected -in his mind his engine with a road travelling vehicle, because in -1787, four years before Trevithick built his steam coach at Camborne, -England, Evans secured a patent from the State of Maryland, giving him -the exclusive right to make and use, within its borders, carriages -propelled by steam. - -That he immediately built a steam carriage in pursuance of this -authority is doubtful. The only authentic record of an attempt is of -one that he constructed in Philadelphia seven years later and under -peculiar circumstances. It is likely that his act in securing the -Maryland patent was done on the spur of a determination to build -an automobile, but it was not immediately carried out. He went on -perfecting steam engines up to 1804, when he accepted an order from the -city of Philadelphia to build a steam flat boat for dock work. - -His mind appears to have then reverted back to the time seven years -before when he contemplated applying an engine to a road vehicle and -got the Maryland patent for that purpose, for, after building the steam -flatboat and installing a 5-horse power engine on it, he announced his -intention of mounting the flatboat on a wagon, on which he proposed to -drive the boat about Philadelphia. - -A horseless carriage, no doubt, had been a hobby with him for years, -and he saw in the steam driven wagon, carrying a steam driven flatboat, -an ocular demonstration of the practicability of the horseless carriage. - -The four wheels of the wagon he built were connected by belts and -gearing with the engine on the boat, and the vehicle was driven up -Market Street by steam, bearing the flatboat and its engine in triumph. -It circled the squares on which the City Hall and the statue of William -Penn now stand, and proceeded to the Schuylkill river. Here flatboat -and wagon were separated, and the former launched on the river. A -paddle wheel was affixed to the stern and connected with the engine. -The boat ran as well as the wagon had done. It steamed down to the -Delaware river and all the way to Trenton. The wagon, divorced of -engine and gearing, became only a wagon again, and whatever became of -it, history does not say. - -The skepticism, the derogatory observations, the pessimistic prophecies -and the contemptuous disapproval of the many persons witnessing the -Evans’ pilgrim’s progress up Market Street aroused the inventor’s ire. - -Had he but been philosophical, he would have appreciated that such has -been the fate and greeting of all inventions. But Evans was choleric. -When a citizen said his wagon was only what might now be dubbed a -“flivver”—that it would never run over five miles an hour, and other -things that the minds of the unimaginative conceive of innovations, -the inventor drew from his wallet $3,000 that the city of Philadelphia -had just paid him for his steamboat, and said the carping critic could -transfer the “roll” to his own pocket, if he could produce a horse that -would run faster for five miles than a steam wagon that Evans would -build. The size of the roll was too much for the pessimist, and he -betook himself and his criticisms off. - -So we see that as there was a first automobile, so was there a first -automobile enthusiast on automobile speed. Why it is that motordom -hasn’t erected a monument to Oliver Evans for his abiding faith in the -future of the motor car as a speed demon, is up to motordom to explain. - - -AUTOMOBILE APATHY CENTURY OLD. - -Oliver Evans tried but was unable to get any one interested in -developing his wagon run by an engine into an improved horseless -carriage. The minds of that day regarded the practicability of his -invention with as much skepticism as we would regard an invention to -visit Mars, if exhibited in our day. - -So Evans gave up any idea of improving his self-running wagon, became -busy with an iron foundry which people could understand, and died rich. - -There was a measure of justification for the lack of popular -imagination and vision toward the automobile in both England and -America when the first samples appeared. They were slow, noisy, erratic -in performance, and positively dangerous—threatening explosions, -collisions, and all sorts of dire things—and it was natural that people -should predict their failure. - -So progress in the development of the horseless carriage lagged. It -was twenty years after Evans’ Philadelphia exhibition when it was next -heard from. Then the scene of operations shifted again to England. - -In 1824, W. H. James, who had patented a water tube boiler for -locomotives, built a passenger coach, of which each drive wheel was -revolved by two cylinders receiving steam by means of a pipe from a -boiler. - -A pressure of 200 pounds of steam to the inch was maintained. The -equivalent of differential action was supplied by independent -application of power to the two drive wheels. The coach accommodated -twenty persons. The contrivance ran satisfactorily on trials, and James -secured financial backing and built another coach weighing 6,000 pounds -which ran 12 to 15 miles an hour. - -But the higher the rate of speed, the worse off the early automobile -builder was. Although James equipped his coach with laminated steel -springs, the road shocks and vibration stopped it every few miles. -Steam joints and connections were broken as fast as they could be -put together. The great need was a method of shock absorption, and -either no one knew that this was the key to the problem, or, if it -was realized, no one knew the remedy. So James failed to make the -auto-coach a success, and died in the poorhouse. - -A year after James built his first motor-coach in England—in -1825—Thomas Blanchard of Springfield, Mass., revived the horseless -carriage subject which, in America, had been last experimented with by -Oliver Evans in 1804. - -Blanchard built a road vehicle that was one of the best produced up to -that time. It was easy of manipulation and climbed hills successfully. -Blanchard took out a patent on it, but when he started to find people -who would buy a completed carriage he could discover none. Nobody -wanted it. And so Blanchard’s efforts ceased. - -At the time James was building his two coaches, and after Blanchard had -given up trying to interest Americans in his invention, a Frenchman -named Pecqueur was experimenting on phases of the auto-carriage. He -discovered the principle of the “differential,” the balance mechanism -which enables one wheel to revolve faster than the other in turning -corners. He invented a planet gearing in this connection, which was -the origin of the idea of the differential, and applied it to a steam -wagon which he built in 1828. The differential of today is based on the -principle discovered by Pecqueur. - -While Pecqueur was evolving this invention, Goldsworthy Gurney in -England made a car which was a practical failure in about everything -except that it demonstrated that sufficient friction between the drive -wheels and the road-bed could be created to produce propulsion. A trip -of almost 200 miles from London and return was made in 1828 by Gurney -in the second vehicle he built, in which the engine was concealed in -the rear. His car made 12 miles an hour for part of the trip. - -From this time—1828 to 1840—the automobile really had a vogue in -England. A number of them were made and run as passenger carriers. For -four months a motor carriage made the nine mile trip from Gloucester -to Cheltenham four times a day. The “Infant” built by Walter Hancock -made trips between London and Stratford. The “Era,” also made by -Hancock, ran from London to Greenwich. To such an extent did the -auto-bus business develop, that speed of 30 miles an hour was claimed, -and one conveyance in 1834 ran over 1,700 miles without repairs or -readjustment. At least, that was the claim made, and as a claim it has -a familiar sound. The twentieth century automobile manufacturers who -claim a run of so many thousand miles without repairs to this and that, -have here a precedent for it that is as old as the industry. - -But there was one feature about these early English motor busses that -was their undoing. They weighed three tons and over, and the wheel rims -were metal. The diameter of the wheels was six feet. The rubber tire -was unthought of. The effect on roads of running a 3-ton, metal rimmed -vehicle, carrying eleven to twenty passengers, was disastrous, and -parliament, incited by horse owners and others, legislated them out of -existence by making the toll charges prohibitive. Where the toll was -$1 for horse drawn vehicles it was made $10 for steam auto buses. The -consequence was that their manufacture and operation ceased about 1840. - -In 1878 Bollee built a steam omnibus which ran between Paris and -Vienna, making 22 miles an hour. In this car was reached the highest -efficiency the art had attained up to that time. Practically an -identical car was built in 1880 by Bollee, which was entered by him 15 -years later and won honors in the Paris-Bordeaux race. - -In 1879 the automobile development germ returned to America. - -In this brief sketch showing the struggle of auto-mechanism to advance, -from the very first inspiration of Cugnot about 1770, we must be -impressed by the determination with which the idea of auto-mechanical -perfection persisted. This persistence was so determined in the face of -all obstacles and opposition that it is almost eerie. - -It was just as if some force of nature was struggling to break through -the crust of man’s consciousness. Or shall we credit it to man, and -say, rather, that it was man’s mind that was the impelling force in the -persistent attempts to read a mechanical riddle? - -Whatever the impelling force, whether man or nature, man heeded its -behests and continued his efforts. - -In 1879 an American did a thing which has had much to do with giving -the United States its long delayed start in the automobile industry. -This man was George B. Selden of Rochester, N. Y. He applied for the -first patent for the gasoline motor, as the driving force of a road -vehicle. This was before any automobile had been equipped with an -internal combustion hydro-carbon motor. This motor had, however, been -in use for some time in running stationary engines. - -The bicycle had, at that time, been an acknowledged success, and in -considerable use for seven or eight years, and had had a great deal of -influence in improving roads. Better roads caused people to look more -favorably on the possibilities of the motor vehicle. - -Selden built a gasoline motor under the specifications contained in -his application for a patent, and it performed satisfactorily in -experiments. But he did not build an automobile containing the gasoline -motor. He did not secure his patent until 1895, 16 years after he had -made application for it. - -In those sixteen years he was endeavoring to interest capital, while at -the same time he was perfecting his motor. While the use of bicycles -had improved roads and this improvement caused a more favorable popular -view of the possibility that automobiles might be made successfully, a -new motive power appeared on the horizon just at this time. - -It was electricity. It was in 1890, eleven years after Selden had -applied for a patent for a gasoline motor, and while he was still -wrestling with the problem of getting capital to aid him, that reports -that the storage battery had been more nearly perfected became rife. - -Men to whom Selden went for financial aid feared that even if the -gasoline motor was feasible, it might be overshadowed by the storage -battery, and held off. Selden even went abroad to raise money, but had -no more success there than here. - -Although an inventor and a skilled mechanic, Selden lacked salesmanship -ability. He was handicapped by impatience and irascibility, and his -predictions of the success of his gasoline motor, its general adoption, -and the extent to which automobiles would in the future be used, were -regarded by people with whom he talked as so extravagant that they -bluntly declared he was crazy, and avoided him. - -He had proceeded so far on one occasion in interesting a Rochester -business man, that he had him in his store and was on the point of -getting him to put up $5,000, when he made a simple remark that -completely “spilled the beans.” - -He said: “Jim, you and I will live to see more carriages on Main Street -run by motor than are now drawn by horses.” - -The prospective investor looked at Selden for half a minute, and came -to a conclusion expressed in these words: - -“George, you are crazy, and I won’t have anything to do with your -scheme,” and with this ultimatum the man stalked out of the store. - -Twenty-five years later this man met Selden, and, extending his hand, -said: “Well, George, you were right years ago when you said there would -be more automobiles in Main Street than horses.” - -But Selden ignored the man’s extended hand, and with passion thrilling -in his tones said: “Yes, and I wasn’t so —— crazy as you and the other -fools said I was,” and walked off. And he never spoke to the man -afterward. - -Selden’s patent could have been issued any time within the sixteen -years that he let it lie dormant. He kept the application alive at the -patent office by legitimate methods, and his reason for not bringing -the matter to a head was that at no time in those sixteen years was he -ready to manufacture under it, and he put off the actual issuance until -such time as he was prepared to take full advantage of the privileges -it conferred. - -He was alive to the fact that the years of a patent are numbered, and -he aimed to time the issue so that the patent would not expire before -he could derive the benefits from it. - -It was in 1895 that the patent was issued, and in 1900 Selden disposed -of it to the Electric Vehicle Company of New Jersey. - -In the meantime, the development of electric motor vehicles had begun, -and in 1885, Benz, a German, built the first road vehicle to be run -by the internal-combustion, hydro-carbon motor. It was a tricycle, -and its motor was single-cylindered, four-cycled, after the type of -an engine developed in 1876, in Germany, by Otto, and water cooled. -It had electric ignition and a mechanical carburetor. Benz secured -a patent in 1886 on his invention and it ran successfully, making -ten miles an hour. Benz was limited to the use of certain streets in -Mannheim, Germany, for running his machine, out of deference to the -tendency to nerves of horses and their drivers or riders. This tricycle -by Benz was the forerunner of the Benz automobile. This is one of the -most successful and popular cars in Germany—and before the war, in all -Europe. The first automobile imported into the United States was a Benz -car brought to the Chicago World’s Fair in 1893. Up to 1917 the Benz -car was an entrant in most automobile speed contests. - -While Benz was perfecting the gasoline motor in its attachment to the -tricycle, Gottlieb Daimler, another German, was producing, in 1885, the -motor-cycle. Daimler had devoted himself sedulously to the problem -of reducing the weight and increasing the power of the gas engine, in -order to adapt it to high efficiency road vehicles. He invented the hot -tube ignition to take the place of ignition by flame. By regulation of -the heat of the tube, the compressed charge of hydro-carbon vapor could -be fired automatically at a specific point in the cycle. Through the -increased speed thus produced the size and weight of the motor could be -reduced. - -The Daimler motor was a big step in advance, as was proved by the -supremacy which the German and French automobile makers at once -attained. The French secured rights to the Daimler motor and operated -under them with such success that from 1889 to 1894, before the United -States had really waked up to motor car making, they were beginning to -put out gasoline automobiles successfully. - - -AMERICA BUILDS STEAM AND ELECTRIC CARS. - -At this time, we, in this country, were following the steam and storage -battery fetishes. The first steam car in the United States that might -be called modern was built by S. H. Roper of Massachusetts, in 1889. -In 1900, steam car building in America gave promise of disputing the -gasoline car records then being made in France, but by 1905 the -gasoline car manufacturers had taken the cue from the European gasoline -successes, and this form of motor came to the front. - -Contemporaneously with the activities in steam car building in the -United States, was the pioneer electric car construction era. - -The first electric automobile was built in 1891, and made its first -exhibition appearance in the streets of Chicago in September, 1892. -The builder of this, the first electric driven vehicle, was William -Morrison of Des Moines, Iowa. It was bought by J. B. McDonald, -president of the American Battery Company, Chicago. Description of -the street scenes attending the showing of this car bring home to us -the extent to which an automobile was a novelty so short a time ago, -comparatively, as 1892. “Ever since its arrival,” said the _Western -Electrician_ of September 17, 1892, “it has attracted the greatest -attention. The sight of a well loaded carriage moving along the streets -at a spanking pace, with no horses in front, and apparently with -nothing on board to give it motion, was one that has been too much, -even for the wide-awake Chicagoan. In passing through the business -section, way had to be cleared by the police for the passage of the -carriage.” - -To think that this description fits a scene enacted during the period -of the present generation! Eighty-eight years before in Philadelphia, -Oliver Evans’ steam propelled wagon, bearing in triumph a flatboat -surmounted by an engine, moved along Market Street with no horses in -front, and was a sight that was too much for the Philadelphian. - -The world “do move,” but very slowly, and this 88-year span of time -is practically the measure of the period consumed by automobile -development to the point where a motor carriage would really run, and -keep on running. - -The date of the building of the first American gasoline automobile that -ran was 1892. The man who performed the feat was Charles E. Duryea. He -had the assistance of his brother, Frank Duryea, but what was more, he -had the benefit of knowledge of what had been accomplished in Europe in -the gasoline motor field. - -Panhard, Levassor, Peugeot, De Dion, Bouton, and Serpollet were -Frenchmen who had done things with gasoline cars, all (except Serpollet -and Levassor) principally through the manufacture of finished cars. -Levassor conceived the idea of a central frame to carry the power -plant, and thus solved the problem of road shock. - -Serpollet had done more. He had invented the flash boiler, reviving an -art the English had previously discovered, which made the use of dry -or superheated steam possible. Higher pressure could be used, water -economies effected and weight reduced. - -When Duryea and others, about 1892, gave concentrated thought to -gasoline propulsion, all the problems of automobile making had found -solution, except two. They were a method of cushioning wheel rims, and -some method by which the motor could be so placed that it would be -immune from shocks and vibrations. - -So, when Duryea, in 1892, built the first American gasoline car that -would run successfully, he merely “assembled” the ideas that had then -accumulated. - -The first auto-race in the world was run from Paris to Rouen, about 80 -miles. It was run in July, 1894. There were 46 cars entered, of which -twelve only were steam cars. The Petit-Journal, a Parisian newspaper, -was the organizer and patron of the race. The winners were all equipped -with the Daimler gasoline motor. - -A little over one year later—Thanksgiving Day, 1895—the first American -automobile race was run from Chicago to Waukegan. The organizer and -patron was a newspaper—the Chicago Times-Herald. Of two entrants, the -“Buggyaut” of Charles E. Duryea was one. - -Duryea built his first car in 1892. - -Henry Ford built his in 1893. - -Elwood Haynes built his in 1894. - -There were but four gasoline cars in the United States in 1896—Duryea, -Ford, Haynes, and Benz, the last being the German car which was -imported. - -With the accomplishments of the builders of steam, electric and -gasoline motored vehicles at this time—1895—the practical success -of horseless carriages had been definitely settled. Practically all -fundamental problems had been solved. To make them finally an accepted -addition to the world’s methods of transportation in general use, two -things only were needed. - -One was the development of perfecting devices, such as rubber tires, -the production of which began about 1889; and the other was the general -acceptance of automobiles by the people—a cordial, popular approval, -manifested by their purchase and use. And while the development to -greater perfection could be left to work itself out, the popular -approval to the point of enthusiastic general adoption was another -matter. - -Inventors could develop, even if it took over a hundred years, a -complete, perfect machine, finally. But human doubts, mental apathy, -and man’s opposition can be overcome by only one means—enthusiasm. - -Enthusiasm is to man’s opposing mind what the oxyhydrogen flame is to -steel, and it is one of the potent forces that will burn itself into -mentality. - -Around the period of 1893-1898, the attitude of the mass of the -people in this country toward the automobile was one of good natured -toleration, but indifference. A few of the “class” were interested and -convinced that the automobile had arrived, but the “mass” believed it -was a passing fad, and from its practical side, of particular interest -chiefly to mechanics. If, in its opinion, the automobile had any -future, it was as a luxury of the rich. - -The people could not sense what they feel now—the value of the -automobile in time, health and recreation, and in its possibilities -as a factor in economics. They saw the disadvantages of owning an -automobile, but were without appreciation of its benefits. - -So one of the most interesting facts in the history of the development -of the motor car is that the first American made gasoline automobile -sold in the United States was disposed of March 24,1898. The sale of -steamers and electrics had been going on for several years before, but -not very extensively. - -This fact of the date of the first sale of a gasoline motor car fixes -clearly that the use of automobiles in the United States practically -increased from one car to over three million, in less than twenty years. - -The first American gasoline car thus sold was disposed of by Alexander -Winton to Robert Allison of Port Carbon, Pa. - -So that, while Duryea completed his car in 1892, Ford his in 1893, and -Haynes his in 1894, it was six, five and four years, respectively, -later, that the first gasoline car was purchased in the United States. - -From 1898, the time of the sale of the Winton car, dates substantially -the development of the automobile industry in this country. - -Beginning with this date, the first real enthusiasm was put into the -sale of cars. - -Enthusiasm had not existed before. Confidence, which is the mother of -enthusiasm, had hesitated and halted. But now confidence believed the -automobile was a reality—all doubts had been resolved—and confidence -bade enthusiasm run, not creep, crawl or walk; and we see how -enthusiasm obeyed. In the enthusiasm displayed in the manufacture and -sale of automobiles today, we are disposed to think it does more than -run, that it actually flies. - - - - -CHAPTER III. - -COMMERCIALIZING THE MOTOR VEHICLE. - - -In the production of the automobile, America did comparatively little -in the fundamentals of invention which are now found in the modern -perfected car. - -Selden invented the three-cylinder gasoline engine, by which the rapid -revolution of the crankshaft of his day was converted into slower but -higher powered motion of drive wheels. - -White invented a generator for steam cars. - -Haynes was responsible for a discovery that caused alloy and specially -heat-treated steel to be introduced, and Knight produced a superior -motor. - -But these were discoveries, inventions or improvements that were -supplemental and perfecting, not elemental. - -It was chiefly the English, the French and the Germans, with the -exception of Evans of Philadelphia, who first conceived the idea of the -horseless carriage, and helped it to its final development by a series -of successive inventions. The names of Cugnot, Trevithick, James, -Pecqueur, Hancock, Gurney, Lenoir, Bollee, Benz, Daimler, Levassor and -Serpollet should form the nomenclative setting of commemorative friezes -on the walls of the grateful motor clubs of the future, as those of -Liszt, Beethoven, Wagner, Gounod, Handel, Massenet, Bach, Mendelssohn, -Grieg and Chopin take honored place in the shrines of Music, the -“heavenly maid.” - -Even in the production of automobiles in any quantity for use—the -commercializing of the idea they represent—the United States did not -lead at first. This honor belongs to France, as does the original -conception by Cugnot of the horseless vehicle. - -The first steam cars manufactured in the United States, on any basis -entitling their manufacture to the dignity of a business, were made -after 1894, and the names of Riker, White and Stanley are the prominent -ones in the steam automobile field. Electric carriages were sold as -commercial commodities in comparatively small quantities, beginning -with 1897, and the first American gasoline car sold in the United -States was made and sold by Alexander Winton in 1898. - -Beginning prior to 1892, the French were selling automobiles by the -hundred, while manufacturers in America were selling them by the dozen. -Panhard and Peugeot were selling gasoline cars, and DeDion-Bouton was -putting the steam automobile on the world’s market. - -But the race is not always to the swiftest. While France started -bravely on its commercialization of the automobile, and had in its -favor what were then good roads of an old and well settled country to -run them over, and perhaps the thriftiest people of any nation to buy -them, there were causes existing in the United States destined to make -of it the greatest automobile producing country in the world, and its -people the largest users of the new invention, while at the same time -operating to cause the United States to sell more cars outside its -confines, to Europe and elsewhere, than are sold by any other country. - -And inasmuch as these underlying causes, while explaining the -supremacy of this country to this date in the manufacture and sale of -automobiles, also explain the reason for believing that the future of -the automobile business will dwarf the proportions it has up to this -time reached, they will bear analysis. - -In the first place, European manufacturers of automobiles, as well as -of other products generally, with the possible exception in a degree, -of the Germans, are bound hand and foot, and therefore handicapped, -by tradition and convention. They make the automobile, especially the -French and English, so solidly, with such fidelity to tradition and -with such conscientious care as to detail, elaboration and finish, -that the price to the buyer, when it is put beside that of a similar -American made product, will not meet competition. - -The American has a knack of turning out an article which is -mechanically correct, has the wearing qualities, but is simpler in -detail, and hence can be sold at a lower cost. Simplicity is the -American manufacturer’s keynote. - -Back of this is business organization system, standardization of -parts used in the automobile, and that high order of constructive and -executive talent that gives the American business man the distinctive -reputation he enjoys and enables him successfully to compete in -price and quality with the rest of the world. There has been a rare -combination of inventive and business abilities in American automobile -manufacturers. - -American mechanical genius has been given great credit, but wherein -is it any greater than that of the German, French or English? In one -particular—its simplicity. The Europeans are elaborate—the Americans -plain and simple. - -It is possible that no European manufacturer would have conceived an -automobile embodying the essentials of small size, simplicity and -speed represented by a Ford car. His tradition and training would have -impelled him to elaboration in size and finish. In this, he is, of -course, moulded by European needs and tastes which differ, in many -respects, from those of the people of this country. - -He does not possess the American’s practical vision in successful -salesmanship. Ford made his car with an eye to quantity. He was not -only an inventor, but a salesman. As he worked on his motor, he worked -on the problems of sales—producing a car that would sell to the largest -number. The larger the number sold, the smaller the price could be made. - -“Large sales and small profits” has been a principle which has made -many American fortunes. Note how this same idea of Ford has been -followed by Willys in the Overland, Olds in the Reo, the makers of the -Maxwell, and half a score of other manufacturers in varying degrees, -causing the gamut of prices of the most popular cars to run from $360 -to $1,200 each. - -This is one reason why the American car could invade England and her -dominions beyond the seas, why Ford has factories in the British Isles -and Canada, and why our yearly exports of automobiles have increased in -the last five years over $100,000,000 in value. - -Other reasons that make us an exporting country of automobiles through -their low prices are our natural resources of iron, steel, lumber, coal -and alloys, enabling us, by their plentifulness and accessibility, to -manufacture at cheap cost, thus offsetting the higher price we pay for -labor in this country than the European manufacturers pay. - -But the biggest factor in the lead which the United States has taken -in the production of automobiles, both for export and consumption -within her own borders, is the universal method of standardizing in -manufacture, adopted by the automobile producers of the nation. - -The manufacturers of this country shine in the field of cost -production, in the economies of purchase of raw materials, in the -method of manufacture, and in marketing their product. - - -ADVERTISING’S HELP IN MAKING THE AUTOMOBILE. - -The extent to which economic methods of purchase of raw -materials—getting the price down—economic standardization of -manufacture, inventing short cuts as it were—affects production cost, -is shown in the fact that the automobile industry ranks almost at the -top in the manufactures of the United States in the per cent of value -added by manufacture to the cost of material. - -The per cent of value added by manufacture to cost of material in -automobile production is 71 per cent, against 66 per cent in cotton -goods, 55 per cent in iron and steel products, 51 per cent in boots -and shoes, 16 per cent in flour and grist mill products, and 12 per -cent in slaughtering and meat packing. - -Strange as it may sound when first stated, advertising is primarily the -base of this result. We know that the first principle of lowered cost -is buying in quantities; that if we buy for 100, the cost for each is -lower than the cost for one; if for 1,000 it is lower than the cost for -each of 100, and so on. - -So, when Ford buys the materials for 533,921 cars, which was the -number he sold in 1916, he gets the price of the cost of each of these -more than a half million cars down to a less price than if he bought -material for 1,708 cars, the number he made in 1904, or even 168,220, -the number he made in 1913. - -This is patent to any one who ever heard of wholesale and retail prices. - -But how did Ford find a sale for 533,921 cars in 1916? - -By advertising. - -The first thing a manufacturer must do to lower the cost of production -of the single unit is to make in quantities. - -How to insure the disposal of that quantity has been the big problem -that American automobile manufacturers have had to solve. The solution -was at hand. It was advertising. The commercializing of automobiles -with the speed and to the extent to which it was done between 1900 and -1917 could not have been successfully accomplished before this period, -because the recognition of the value of advertising had not become -widespread up to that time. - -Advertising had gone through a process of development that was as slow -as that of the automobile business. Both arts emerged from darkness -into light at about the same time. Here is evidence that a very bright -and smart set of men engaged in automobile production at the very -outset. - -They were mechanical, they were versed in business methods, and they -were conscious of the value of advertising. - -This combination of knowledge by the men engaged in it has made the -automobile industry a record breaker in point of the time consumed -in its development. It has made it stand out as unparalleled by any -other industry in this country in the speed with which it progressed -from final experimentation to an established recognized enterprise, -involving mammoth investment of capital and huge profits. - -That the automobile business has been the most extensively advertised -business of any in which we are engaged, almost anyone will concede -from knowledge gained from his own observation. - -Advertising is like the rainbow—many hued. It may be one form, or -it may be another. It may whisper, or it may shout. We must concede -that the advertising the automobile promoters have done was more -largely of the shouting than the whispering kind. That is not to their -discredit—rather otherwise. The distinct injunction to advertise is -contained in the Bible. It was: “To so let your good work shine that,” -etc., and the people of scriptural days were admonished not to hide -their light under a bushel. - -Newspapers are said, somewhat carelessly, to have made the automobile -business. It is not exactly fair to make this statement so sweepingly. -They did for it a good deal more than they did for any other line of -industry, and are still doing it. - -They never devoted the space that they gave to the automobile to -railroads, steamboats, the telephone, street railways, oil, lumber, -mining, meat packing, or any other commercial industry. It was not, -necessarily, that the automobile manufacturers, in all cases, asked for -this liberal treatment by the newspapers. - -It was that newspapers volunteered it. One started it, and others -followed. The spell which the idea contained in the automobile weaves -over men and women was cast equally over the editors and publishers in -the United States. In recognition of the novelty of the automobile, -they laid liberal offerings of free space on the altar of motordom. Its -peculiar exhilaration penetrated the editorial sanctum, and in this -distinctive exhilaration the automobile has had no parallel except in -golf. - -It has been quite generally accepted as an axiom that if you give, you -receive. We see this statement proved in a hundred ways. A pleasant -smile begets a smile. A good deed is matched in kind. No better reason -for this exists, probably, than that it is ingrained in us to hate to -be under obligations to anybody. So when we get a smile we promptly pay -it back and are square, just as we invite to lunch a man who invited us -to lunch. We are very particular about this. - -The automobile manufacturers were not lacking in this trait, common -to human nature. When publishers put their stamp of approval on the -motor car and unreservedly threw open their columns to the progress -made in its improvements and production, manufacturers appreciated and -reciprocated. - -The result has been that more money has been spent in advertising in -the automobile business in the United States than has been spent in -any other single line of enterprise. Possibly the nearest approach to -it has been patent medicine, or the promotion of various enterprises. - -And it has paid—every automobile maker, and every salesman will admit -this as a matter of course. They will admit it because they know it to -be so—a knowledge derived in their own experience. - -The psychology of advertising shows that there are two principal things -involved in making advertising profitably productive. One is that it -informs, the other that it persuades. If the mind is informed of what -an automobile is, what it does, and all the advantages and benefits it -confers, it has a basis to work on, and from this working basis it will -evolve conclusions. - -The state of the mind in the conclusive stage is fallow field for -persuasive effort. - -In the advertising given in this country to the automobile which has -placed millions of motor cars in the ownership of people in the United -States, not counting those exported, the publishers of our journals -have supplied the information, and the manufacturer the persuasion. - -It is this double teamwork which, supplementing the business ability -of our manufacturers, has put us in the front rank as automobile -producers. But baldly to say that the newspapers made the automobile -is not giving full credit to the other causes which contribute to our -success in this line of enterprise. It has been a combination of causes -working together which has made the automobile. - - -UNITED STATES A FERTILE FIELD. - -There have been other forms of advertising used in automobile selling, -besides space in publications, and they are forms the value of which -cannot be discounted. “A satisfied customer is the best advertisement” -is one of the oldest slogans of advertising. And it is true. The -automobile manufacturers of the United States know it is true, and have -been guided by it. - -Road races, speed and endurance contests, employment of racing drivers -with records, automobile shows, outdoor displays—all have been forms -of advertising employed in the industry, and all have played their -part and exerted their influence to one common end—that of putting the -industry in the United States on the highest pinnacle it has attained -anywhere in the world in seventeen years. - -And while full credit must be given the vision and capabilities of the -manufacturers, and the productive value of advertising in all forms, -meed for the results can not be withheld from that element, which, in -the final analysis, makes all things possible—the people, the base and -groundwork on which all successful industrial structures are erected. - -All the business ability of all the automobile makers, however great, -and all the advertising, however convincing, that could be written, -could not have made the automobile business of today if the people had -not taken hold of the automobile and put their stamp of approval on it. - -“Power of the Press”—what is it but the “Power of the People” expressed -on paper? Power of the People—the force that revolves the world, -revolved the wheels of millions of automobiles, and will go on turning -the wheels of millions more. - -The people of the United States supplied the fertile field in which the -American automobile grew and blossomed. - -The reason France, although it took the lead in the commercialization -of the motor car, could not hold it in the race with this country is to -be found in the difference between the peoples of the two countries. - -France had good roads—has had them as has Europe for hundreds of years. -The French had money—they are the greatest savers in the world. - -But if you put your money in rentes or savings banks, you do not spend -it for automobiles or anything else. The reason the French have money -is the reason they do not buy automobiles. - -No people in the world have learned, as have Americans, to spend money -to make money. No people in the world take the chances Americans do, -and no people win as the Americans do. In this is found one of many -causes for the commercial success of the automobile in America. - -The American is good to himself as is the man of no other nationality. -He is further advanced in general knowledge, mostly gained by -experience through intercommunication with his fellows. His bon -camaraderie is effervescent, giving him opportunities to learn things -denied to the self-restrained European. His school is the broad school -of the world. He doesn’t have to travel to see the world; the world is -in America and comes to him. - -So, with the opportunities natural to a new country, with the standards -of living and the mode of thought that they are in the United States, -the 103,000,000 people of continental United States are a market for -automobiles that dwarf the 464,000,000 people of Europe. - -What such a market has been during the last decade and a half may be -gathered from the fact that in the last sixteen years the population of -the United States increased at a greater rate than ever in its history. -The increase of the people of the United States in the sixteen years -the automobile industry has been commercialized, was 25,887,904. In the -previous twenty years the increase was 25,838,792. - -People without money can not buy automobiles, so what has been the -increase in wealth in the United States in this same period? - -In the last twelve years it has been $99,221,764,315. - -Staggering, you say? Rather, when you know that the increase in wealth -in the United States in the last twelve years was nearly double the -increase in the twenty years which preceded the last twelve years. - -No epoch in the world’s history, therefore, was so favorable as -the period of 1900-1917 for commercializing the automobile. It was -timed just to the moment for quick and dramatic success. The period -was coincident with the high water marks reached in the increase of -population and in the nation’s money-making. Advertising had reached a -stage of development it had not attained before. - - -STARS IN THEIR COURSES FOUGHT FOR THE AUTOMOBILE. - -We must credit enthusiasm for some of the influence in the success of -the industry. We will have to admit that it is present in the factory -and in the selling mart, in the shows and on the road. A satisfied -customer, the best advertisement, finds expression in the loyal -recommendation an owner gives his own make of car; enthusiasm of maker, -of salesman, of owner—it runs along the line, and if advertising is the -gasoline which makes the car go, enthusiasm is the oil which keeps the -bearings of the industry lubricated. - -The year 1898 saw the first real attempts of manufacturers in the -United States, either of gasoline, electric or steam cars, to make them -in any quantity. - -The gasoline cars that were pioneers were the Duryea, the Ford and the -Haynes, but until 1898 these were distinctly still in the field of -experimentation. Ford personally built a car run by a gasoline motor of -the two-cylinder, four-cycle type of his own construction, and this car -ran 25 miles an hour. Ford was second only to Duryea who constructed -the first gasoline car built in the United States. - -Duryea persisted in producing a buggy type of car, and failed to -get any sale for it. Ford and Haynes had no better luck in finding -purchasers for their cars. - -Alexander Winton entered the field after Duryea, Ford and Haynes, and -in 1898 sold the first gasoline car that was bought for use in the -United States. - -Ford built his first car in 1893. It was not a perfect car, but better -than any which had preceded it. He built his second car in 1895, with -a 4 × 4 two-cylinder, four-cycle motor. In this year he organized -the Detroit Automobile Company with a capital of $50,000. Ford owned -one-sixth interest, and drew $100 a month salary as chief engineer. - -In the six years Ford remained with the Detroit Automobile Company it -put out only two or three cars. In 1901 Ford severed his connection -with the company, which shortly became the Cadillac Automobile Company, -and is now the Cadillac Motor Car Company. The Cadillac has had a -successful career, and is one of the cars of which a particularly large -number has been sold. - -Leaving the Detroit Automobile Company, Ford started a machine shop -of his own, and in 1902 produced a car with a 90-inch wheel base, and -which is now regarded as standard gauge, using the two cylinders, 4 × -4, and a double opposed engine. - -After much difficulty he got money from half a dozen persons and -organized the Ford Motor Company with a capital of $100,000. At first -he owned only 25-1/2 per cent of the stock, but later he borrowed -$175,000 and bought 25-1/2 per cent more, and still later by paying 700 -per cent of its face value, secured 7-1/2 per cent more, which makes -his holding in the company at this time 58-1/2 per cent of the stock. - -The first Ford car to be a commercial success was put out in 1903, and -the record of production of Ford cars to date is as follows: - - Year. No. Cars. - 1904 1,708 - 1905 1,695 - 1906 1,599 - 1907 8,423 - 1908 6,398 - 1909 10,607 - 1910 18,664 - 1911 34,528 - 1912 78,440 - 1913 168,220 - 1914 248,307 - 1915 308,213 - 1916 533,921 - -In 1916 the Ford production was over one-sixth of the 3,000,000 cars in -use in the United States. In that year he produced nearly one-third of -all the passenger cars made in that year. - -Ford’s car was a small, low priced car from the start. Haynes’ was a -larger and higher priced car. Winton’s was likewise a large and more -expensive car. - - -A RAIN OF AUTOMOBILE MAKERS. - -The year of the Spanish-American war—1898—saw the beginning of a -veritable rain of automobile manufacturers in the United States. In -that year the Stanley, Stearns, Thomas, Matheson, Winton, and the -Waverley Company entered the field. - -In 1899, there appeared the Locomobile Company, Olds, Baker-Electric -and Pierce-Racine (later absorbed by J. I. Case and now the Case car). - -In 1900, Packard, Peerless, Glide, National Electric, Lambert, Elmore, -Babcock, Jackson, Knox and Lane were entrants in the lists. - -In 1901, Acme, Gaeth, Pierce-Arrow, White, Royal Tourist, -Stevens-Duryea, Waltham-Orient, Pope-Toledo, Welch, Pullman and Rambler. - -In 1902, Cadillac, Franklin, Pope, Studebaker, Sultan, Okey, Walter and -Schacht. - -In 1903, Ford, Auburn, Overland, Moline, Premier, Corbin, Bergdall, -Holsman, Columbus and Chadwick. - -In 1904, Buick, Cleveland, American Napier, Stoddard-Dayton, Marmon, -Mitchell, Jewel, McIntyre, Pittsburgh Electric, Ranch & Lang and -Simplex. - -In 1905, Alco, American, Dorris, Johnson, Jonz, Kisselcar, Maxwell, -Monarch, Reo, Studebaker, Garford and American Mors. - -In 1906, Anderson, A. B. C., Cartercar, Brunn, Thomas-Detroit, Kearns, -Sterling, Mora, Moon, Pennsylvania, Palmer & Singer and Staver. - -In 1907, Albany, Atlas, Brush, Bertolet, Byrider, Carter, Chalmers, -Coppock, De Luxe, Oakland, Regal, Selden, Speedwell, Interstate, Lozier -and Great Western. - -In 1908, Sharp-Arrow, Pittsburgh 6, Crown Midland, Rider-Lewis, -Paige-Detroit, Velie, Cole, E. M. F. and Hupmobile. - -In 1909, Hudson, Advance, Cunningham, Coates-Goshen, Ohio and Abbott. - -Since 1909 to date new cars put on the market include: - -Stutz (1911), Chevrolet (1912), Grand, Chandler, Saxon and -Scripps-Booth (1913), Dodge and Dort (1914), Owen Magnetic (1915), -Drexel and Elgin (1916). Other automobiles in the field are the -Maibohm, Allen, Ben-Hur, Crow-Elkhart, Harroun, Lexington and Madison. - -A table giving a complete list of automobiles is printed elsewhere in -this volume. - -The earlier manufacturers of motor cars included many who had been -engaged in manufacturing bicycles, and following them was a group that -had successfully manufactured wagons and carriages. Still another set -of manufacturers were machinery men. - -In the list of names of automobile companies which have been organized -during the period of the industry’s development, there are some which -have gone out of business, but not many. - -The industry, generally speaking, has had comparatively few complete -failures. Mortality has been lower with it than with many other -business enterprises. - -This is chiefly due to the intelligence which the manufacturers brought -to the business, plus the demand which sprang up for the automobile -as soon as the people, instructed with great and liberal space by the -press, realized it was the vehicle that could give what they wanted. -Never was the value of a concerted campaign of education better -demonstrated. - -That unusually intelligent study of the subject of suiting the popular -desire was given by manufacturers is evidenced in many ways, but in -none that is so typical as was the standardization of motor cars. - -At one stage of the industry its very life was threatened by a lack of -uniformity in the mechanical construction of the various types of the -automobile. - -The big idea that has made Henry Ford’s millions was a combination -one. It was the building of a motor and car combined which could be -constructed at a cost that would command large quantity production. -This conception by Ford, alone, simple though it was, proclaims him the -genius he undoubtedly is. - -The purchase of cars between 1898, when sales first began to be made, -and 1903, when Ford put out his car, was practically confined to -people of wealth and leisure. It required both to own and operate -an automobile. Men bought them at a cost of $3,000 to $12,000 each. -Purchasers were exhilarated by auto-intoxication—with little thought of -the practical uses the invention could be put to. Snobbishness, social -impression and display of superior wealth were back of many purchases. - -But for the manufacturers’ quick recognition that the future of the -automobile did not rest with the rich, that to be a great money-making -industry, they must make automobiles for the mass and not for the -class, the business would probably today be no further advanced than it -was fifteen years ago. A parallel of what might have been may be found -in yachting or motor boating—two methods of deriving pleasure and speed -which are confined to the rich, largely because prohibitive in cost to -the mass. - -Popularization of the automobile demanded standardization. -Automobilization of the nation would never be accomplished if the -hundreds of manufacturers that sprang up produced hundreds of -different cars with different sizes of parts, and different standards, -requiring owners of cars with which something had gone wrong, to wait -indefinitely for a particular device used by a certain company. - -Early owners of cars learned by bitter experience what it meant to have -a screw loose or a tire put out of business in a town where the supply -stores did not sell that particular screw or that particular tire. -The spread of distance, annihilated by the auto, was threatened by -difficulties such as these. - -High maintenance and repair costs ate up many an automobile buyer in -the early days of the craze. It wasn’t the original cost, although that -was high enough; it was the upkeep. - -Men of real ability—competent business men and expert engineers—got -into the business, fortunately, largely for the rewards it promised, -and by standardization and systematization brought the cost production -down. - - -GETTING THE PRICE OF AUTOMOBILES DOWN. - -The engineers banded together and studied standards of hard steel, -screw threads and wheel rims. The manufacturers, preserving open -minds, co-operated, and today automobiles are the most interchangeable -of all assembled mechanisms. - -But for this the farmer, the moderate salaried city man, the mechanic -and the small tradesman would not today be consumers of motor cars. -But for this the average price for passenger cars, originally in 1900 -around $3,000 and by 1911 reduced to $1,000, would never have been -gotten down in 1916 to $605. - -The average price of all motor vehicles, combining pleasure cars and -trucks, was, in 1916, $636. The preponderance of passenger cars at the -lower prices brought the average down, since the average price of motor -trucks alone was about $1,800. For every motor truck sold, eighteen -passenger cars were disposed of in 1916. - -With standardization and the consequent lowering of cost, the -automobile industry acquired a momentum that has carried production -forward on a constantly ascending scale, as witness these figures of -passenger cars alone: - - Year No. of - cars made - 1909 80,000 - 1910 185,000 - 1911 200,000 - 1912 250,000 - 1915 842,249 - 1916 1,617,708 - -The manufacture of motor trucks almost doubled in one year. The number -produced in 1915 was 50,366. In 1916 the number made was 92,130. - -The above table, showing the rate of increase in passenger cars made in -seven years, makes it clear that the greatest growth in the passenger -car business has been since and including the year 1911. - -That was the year in which the largest number of medium and low priced -standardized cars with refinement of detail and added equipments, -selling from $1,500 down to $500, was first put on the market. Ford -almost doubled his output in that year. The next years, 1912 and 1913, -also he more than doubled each year his output of the previous year. -And in 1916 he made nearly one-third of all the passenger cars produced -in the entire United States in that year. - -Could anything demonstrate more conclusively than these facts, that -if you have an article within the price of the mass of the people, it -will sell, if the people want it? The one idea of Henry Ford—quantity -sales—saved to the United States the premiership in automobile making. -For other manufacturers adopted it, some radically, others in a -modified form. Its influence was unquestioned in putting the price of -motor cars at a figure at which a person happening to have less than -the income of a millionaire could afford to buy one, so that when every -one of the many values and benefits of the existence of the modern -automobile is scheduled, let us, in giving credit for them, place the -name of Ford at the head of the list. - -When we have arrived at our destination, or have attained an object -much desired, our satisfaction is such that we are in a forgiving mind -and prone to forget the sacrifices we had to make, the difficulties we -had to overcome, the strenuous work we had to do. The end justified the -means, and we don’t think long about the hardships in the means. - -Preëminence of the United States in the motor field has not been gained -without hardships, sacrifices and disappointments by those engaged in -it, nor was it reached by the immediate and uninterrupted success of -all companies organized to commercialize the invention. - -While, as we have stated before, the number of final failures of -companies was small compared with those in some other avenues of -enterprise in the development stage, the number of individuals and -corporations in the automobile business that started on the wrong -road and found it impassable, was not small. But here again it was -fortunate for humanity, reckoning the automobile as one of the greatest -boons vouchsafed the human race, that the mechanical perfection of -the automobile was reached at a date coincident with more enlightened -thought, a liberalism of view and a clearer vision of the possibilities -of the future by our men of business. - -For automobile enterprises that took the wrong road and got mired -in the mud of mechanical and management difficulties and financial -complications were, most of them, lifted out of the slough by men -who knew the right road and were better drivers. Had the automobile -developed mechanically to near-perfection a score of years before it -did, not only would the people as a mass not have been ready for it, -but it is doubtful if business at that period had developed to the -point of efficiency where it could recognize the possibilities latent -in the motor car as a money-making machine. Where money is, the best -brains go. Capital is timid. But brains and capital want only to be -shown. - -Some of the most successful motor cars and motor car companies of today -were deeply mired in financial difficulties a decade ago, but were -pried and towed out and made great successes by new brains and new -capital administered by a new set of men. - -Nor was the industry immune from the bane of all invention -industries—the patent right. The man who gave it the most trouble was -the man whose name is far up toward the head of the list of men who -were responsible for the inventive ideas involved in the motive feature -of the automobile—Selden. - -He kept the industry in a ferment for ten years or more, whether -designedly or not, through his patent, the mere existence of which -tended toward restraining its development by discouraging inventive -expansion, and ceasing to exercise the depressing effects of a wet -blanket on automobile growth only when the influence of his patent was -neutralized by an adverse court decision. - -The earlier commercialism of the automobile was characterized by many -extravagances in expansive plans, high financing and even recklessness, -not only on the part of manufacturers, but buyers of automobiles as -well. - -In getting the price down to a figure which is not excessive, -the manufacturers removed the cause which militated most against -popularization of the invention and provided one of the reasons for -opposition to it by many people. To pay the prices which originally -prevailed, men mortgaged their homes and women sold their diamonds -and went bankrupt on the upkeep of the car. Manufacturers expanded -too lavishly, overcapitalized, and attempted great stockjobbing -consolidations, while incompetent officers were paid excessive -salaries, until conservative financiers entered a protest and the banks -called a halt. - -The abuses which were co-existent with one of the eras of the -automobile’s development caused the industry to be regarded by a class -of the people as a luxurious outlaw and a menace to the well-being of -the country. - -Vice-President Fairbanks raised his voice to protest against the new -manifestation of human nature’s appetite for joy and comfort. - -James A. Patten declared a Kansas City bank held fifty-two mortgages -on as many automobiles, and that that sort of loaning was going to be -stopped. - -Certain banks blocked, as far as possible, loans for purchases of -automobiles. A prominent banker as late as 1910 declared that the -initial cost of automobiles to American users, being $250,000,000 -a year, with as much more for upkeep and incidental expense, was -equivalent in actual economic waste each year to twice the value of -property destroyed in the San Francisco earthquake. - -A year after this statement was made, 1911, saw the dawn of the epoch -of low priced cars, and the low priced car has reversed the condition -from an economic waste, if such it was, to an economic gain, which it -undoubtedly is. - -Through all the storms of protest and criticisms, manufacturers went -on their way, just as the automobile inventors had done under similar -circumstances when men laughed and scoffed at them and called them -crazy. - -The depression of 1893 came too early to affect the automobile -industry, but that of 1907 hit it at the time when it was by no means -as strong as it was later; and yet, while in that year dozens of -companies were bankrupted, and in 1910, fifty-two went out of business, -it should be said that the great majority of them were not actually -starters in the race. They were entrants that never toed the scratch. -Their failure to make a start was due to lack of capital or inefficient -organizers. A very large proportion of automobile companies that -actually started in business have survived and are successful. - -Names of automobile manufacturers who are prominent today were familiar -names in the earlier stages of the industry, and more of the original -automobile makers have survived than have fallen by the wayside. - - -REMOVING OBSTACLES TO AUTOMOBILE PRODUCTION. - -One objection the old philosopher has to the automobile is an objection -that is strengthened by the fact that he does not own one. It is that -the automobile contributes toward making the age one in which a really -short time appears to be and is generally regarded as a long time. It -destroys proportions as it annihilates space. - -Seventeen years is a shorter time in the view of the philosopher of -60, accustomed to reviewing events in his past life half a century -back, than it appears to a man of 34. It is just half the length of -this young man’s years. Time, as to duration, is thus comparative to -different views. - -Seventeen years is not long for a commercial industry to take the place -which the automobile business now occupies in a country as great as -this. It is a short time in which to build up a business representing -the figures of two billion on the mark of the American dollar. - -But this business, which has not been a business for even a score of -years, did not arrive at its present estate without vicissitudes, and -without strenuous work in removing obstacles in the way of its progress. - -The seventeen years in which the industry made its record, saw the rise -and the fall of the steamer type of car, the wresting of an Old Man of -the Sea, in the form of a discouraging patent holder from the shoulders -of the manufacturers, the electric car largely depopularized and the -gasoline car established in wellnigh universal favor. - -The procession of the more important earlier pioneers in the -commercialization of the automobile started with the Pope Manufacturing -Company at its head. In 1897 this company, which had successfully made -bicycles, manufactured electric cars at Hartford, but was unable to -find a market for them in the United States. An effort was made to get -the Newport set to take them up, but the wealthy owners of Newport -villas could not be induced to be even mildly interested. - -So the Pope company decided to send them abroad, and shipped them on -the steamer La Bourgogne. But this ship sank at sea and the cars were -lost. The Pope company then made electric cabs, many of which appeared -on the streets of New York in 1898 and 1899, and finally sold its -electric vehicle business to the Columbia Automobile Company of New -Jersey. - -This corporation was formed by a party of capitalists headed by -William C. Whitney of New York, and included P. A. B. Widener of -Philadelphia, A. F. Brady of Albany, and Thomas F. Ryan of New York. -All were interested and actively engaged in street electric traction -development in the East. Whitney, who was in public life as Secretary -of the Navy under Cleveland, was a man of far vision in industrial -possibilities, and recognized early in its development stage that -the automobile had a future. He was as quick to see, also, that the -gasoline motor drive was the coming means of propulsion, and he caused -the Columbia Automobile Company, whose name was changed to the Electric -Vehicle Company, to negotiate for and finally secure complete rights to -the Selden patents for gasoline motors. - -Having a sweeping license agreement with Selden, the Electric Vehicle -Company undertook to enforce its rights, and one of the first concerns -sued for infringement was the Winton Company, whose gasoline car, sold -in 1898, was the first gasoline car disposed of by a manufacturer in -this country. The United States court upheld the patent, and nine -of the then leading automobile manufacturers, finding they must pay -royalties, formed an association under the title of the Association of -Licensed Automobile Manufacturers. - -For thirteen years thereafter, until 1911, gasoline automobile -manufacture in the United States was under tribute to a royalty of -from four-fifths of one per cent to 1-1/4 per cent of the retail -price of all cars sold. The beneficiary of this license fee was the -Electric Vehicle Company, which “split” the fees with Selden, and the -Association of Licensed Automobile Manufacturers itself. The fees -amounted to very large sums, and the licensees wriggled and squirmed; -but the United States District Court having upheld the Selden patent, -there was no way out, unless a deliverer appeared. - -And such a deliverer did appear. - -It was none other than Henry Ford. - -For a pacifist, Henry Ford is about the greatest fighter the American -industrial ranks have ever produced. His history has been a succession -of fights—fights to make a motor that would go inside a hat box, fights -to get anybody to believe in him and invest money with him, fights -to convince people that nearly everybody would buy an automobile if -the price was low enough, and finally the fiercest and most prolonged -fight of all—the fight to break the Selden patent monopoly and free the -industry from serfdom, give it free rein and relieve it of the incubus -of tribute. - -Ford had refused to join the Association of Licensed Automobile -Manufacturers and had gone on making his engine and adapting it to a -car which he put out, as has before been said, in 1903. The Electric -Vehicle Company, which held the reins and was driving all the gasoline -car makers except Ford, cracked its whip in Henry’s direction and -brought him up standing, and bristling as well. - -In the suit for infringement against Ford the Electric Vehicle Company -won in the lower United States court, but it reckoned without its -Ford. That product of a strain of Irish-English fighting blood didn’t -consider he was whipped because one court decided against him, as all -the other manufacturers, who submitted their necks meekly to the Selden -patent yoke, had done. - -He promptly appealed and fought the case like a wildcat up to the -United States Circuit Court of Appeals, and through that tribunal, and -with such success that, in 1911 this court reversed the finding of the -lower court and gave the decision to Henry Ford. - -The original suit in the lower court was begun against Ford in 1903, -so that his fight against the first and only automobile “trust” was an -eight year war. - -But during it all, he never faltered in his activities in perfecting -his car and making his elaborate preparations to build and market it. -His confidence in his final victory was not affected in the slightest -degree. He went on, pursuing his object with unruffled mien. - -It must have been a trying brand of chagrin that the gasoline car -manufacturers, who had tamely submitted to their first setback in -the effort to slip the fetters of patent rights, had to wear around -with them. They had looked askance at Ford. They feared he was likely -to kill the automobile “game” by putting out a car that would make -automobiling common, and put a damper on the purchase of the cars -they made, by people who could afford to buy them. At best, he was -calculated to be a disturbing element in the business—probably driving -down prices to a point where there would be no profit in them. - -And here he had been the savior of the automobile business. - -Many men have written letters that have been their undoing. Selden had -made an entry in a personal notebook or diary that brought about his -downfall and the loosening of his grip on automobile manufacturing. - -The ground on which the United States Circuit Court of Appeals decided -for Ford and against the Selden patent was that the intent of the -inventor had been to patent a motor designed after the type of a motor -invented by Brayton of which the Ford motor was not an infringement, -and not after the type of the gas engine of Otto the German, of which -the Ford motor would have been an infringement, and that Selden had -clearly disclosed this intent, as evidenced by a slurring entry in -his diary regarding the four-cycle Otto engine, characterizing it as -“another of those d—d Dutch engines.” - -The Otto engine for stationary purposes was in use before Selden filed -his application for the patent, and if he did not intend the patent to -cover an engine of that type he had no hold on the manufacturers who, -with scarcely a single exception, were making automobiles, with motors -patterned after the Otto type. These manufacturers could have done what -Ford did—taken the case up and got the same decision, but they didn’t -do it, thereby making Henry Ford the emancipator of the automobile -industry. - -This delivery by Ford of automobile manufacturing from patent restraint -and his quantity production idea, without any other of the many things -he has done, would have made Henry Ford what he is—the most commanding -figure in the automobile industry today. - -There can be no doubt that the very existence of the Selden patent with -the rights it conferred to tax every single automobile, was a deterrent -to the growth of the business, because with the wiping out, through -Ford’s court victory, of the right of William C. Whitney’s Electric -Vehicle Company to take toll of all gasoline autocars produced, -encouragement was given to capital to invest more largely in the -business. - -If, in the springtime, the season when the grass begins to sprout, you -remove an old door that has lain flat on the grass all winter, the -grass in the space covered by that door will literally spring up. - -So when the lid—the Selden patent—was lifted from the automobile -industry, it sprang to the front. The year 1911 was the epochal year -in volume of production in the business. From that year dates the -present era of automobile high production. It wasn’t that many new -companies entered the field. It was that those already in it expanded -and increased their output. There was no longer an Old Man of the -Sea, in the form of a tax on production, clinging to their necks and -shoulders. The age of standardization had come, and the soundness of -Ford’s quantity production idea had been demonstrated. Thence on, -the automobile industry had a clear course, if not in all cases easy -sailing, and it has traversed it on a straight line, with a current of -popular demand running strong in the direction it has been headed. - - -GASOLINE CAR IN POPULAR DEMAND. - -Pioneers in manufacturing gasoline cars during the period beginning -at the time—1898—when the first gasoline car, a Winton, was sold, -were Clarke Bros., makers of the Auto-car, E. R. Thomas whose name -the Thomas Flier took, Stearns, Chalmers, Jeffery, Wilkinson, who -designed the Franklin car, Olds who changed from steam to gasoline, -Brush, Ford, Leland who produced the Cadillac, Haynes and Apperson. -Many familiar cars came into the field later, or were developed and -advertised by men who became identified with them at a later date. -Although its manufacture was started in 1903, the Overland car, which -ranks second to Ford in quantity production, did not become the factor -in the industry it is today until John North Willys, a salesman, -became identified with it and gave it its remarkable vogue through his -personality and spectacular salesmanship. - -The gasoline car was struggling to perfection when the electric and -steam types of cars were reasonably well established on the market. - -In 1896, New England saw its first motor race of electric cars. The -names of make or makers of electric cars familiar from that date -on include those of Riker, Pope, Waverley, Baker, Woods, Barrows, -Studebaker, whose first cars were electric, Columbus Buggy, Rauch & -Lang, Detroit, Ohio and Anderson. - -But the electric car industry never has reached the proportions of the -gasoline car industry. It has never advertised in the lavish manner -adopted by gasoline car makers. It has not entered races to the extent -its gasoline competitors have. It adopted conservative methods which -have given it a slow growth. It is only within the last five years that -shaft drives have been perfected in electric car construction, while -producing controllers that would not arc, whatever the provocation, -have been matters of slow evolution. - -But that the electric car is a perfectly balanced piece of mechanism -and the one type of the automobile with the least fits and starts, is -conceded, and this superiority will doubtless enable the electric type -to make up in the future in the motor truck field what it has lost to -the gasoline type in the passenger field. - -If the passenger automobile has not reached the length of its use and -consumption, and it unquestionably has not, what shall be said of the -freight automobile, the industry in which is yet in embryo? - -The greatest future field for the automobile is without doubt in this -direction, as is evidenced by numberless indications. - -The increase in motor trucks made in 1916 over 1915 was within less -than 8,000 of being double the number of the previous year. The number -produced in 1916 was 92,130, against 50,369 in 1915, with an increase -in retail value of $40,000,000. A business that nearly doubles in -product while showing an increase in total sales of only 33-1/3 per -cent, as the automobile truck business does, is seen by analysis to be -getting the price of its units down, and that is the surest means in -commercial production to insure increased consumption. - -Perfected devices are operating in the motor truck field as they did in -the passenger car field to lower cost, and the lower the cost of motor -trucks is gotten down, the more people will buy them. - -The field of the motor truck’s usefulness is ever widening. The -European war has demonstrated many directions in which it can be -utilized, while its adaptation to the country is as feasible and -economical as its adoption by the city. Its use by national, state and -city governmental departments is growing rapidly, and the best evidence -exists of its superior economy to the horse for many purposes. And when -the high wave of motor truck use rolls in, the electric type will be -found riding on its crest. Already there are upwards of 50,000 electric -trucks alone in use. - -The electric passenger car, while far behind the gasoline car in the -race of automobiles, is distinctly in the lead of the steam type. -Never was the biblical saying, “and the first shall be last,” truer -than of the steam automobile. First to arrive at the starting line, -it was distanced early in the quarter stretch. The first steam car in -the United States was sold in 1889, the first electric in 1892 and the -first gasoline in 1898. And though it had a start over the gasoline car -of nine years, it was never able seriously to compete with it, and 1905 -saw only one large manufacturer left in the steam car industry. - -At one time, about 1900, it looked as though steam and gasoline cars -were running neck and neck in popular favor, and the names of Riker, -White, C. E. Whitney and Stanley were as well known almost as those of -Ford, Chalmers and a score of gasoline car makers are known today, but -the contest was a short one. - -The gasoline car forged ahead. Its success discouraged the steam -car makers, most of whom changed from steam car to gasoline car -manufacturing, and the business of steam car making narrowed down to -two manufacturers—Stanley and White. Finally, in 1911, White gave up -making steam cars and devoted his facilities to gasoline cars only, -leaving Stanley to share only with Doble in the steam field. - -The reason why the car buying public gave enthusiastic patronage to -gasoline cars and scant encouragement to steam cars was that the use -of the steam car requires more mechanical knowledge than does that of -the gasoline car, and the work of making repairs is more complicated. -The man of today wants to do a thing in the easiest way. His education, -through the conveniences supplied in modern life, is all along the line -of short cuts to anywhere and anything. “Why work when you don’t have -to,” is his motto, and he has never been able to see why he should take -the time to become a proficient mechanic to give himself pleasure, when -he can buy a gasoline car and escape doing so—and much work in running -his car and repairing it, as well. - -The steam automobile reached the zenith of its vogue prior to 1905. -Beginning with that year, its use declined and that of gasoline cars -increased. The gasoline type is now almost universal in passenger -automobiles, and the fact that the power units in the operation of the -gasoline motor are more economical than either electricity or steam, -has its bearing on their general popularity. - - -AUTOMOBILE DEMAND MADE ACCESSORIES NECESSARY. - -A history of the commercializing of the automobile which does not make -mention of the manner in which the development of the industry called -into being an almost endless list of incidental and accessory products, -is not complete. - -The production of the finished automobile involves a multiplicity -of units, and as no automobile manufacturer makes all of these, but -depends on independent factories for certain of them, there has been -a multiplication of enterprises supplying products entering in the -construction of automobiles, whose development and financial success -have kept pace with those of the automobile itself. - -Foremost in the list of accessories for the automobile are tires, and -the industry in this product is of vast proportions. The production of -automobiles—passenger and freight—having been 1,617,708 in 1916, and -the manufacturers having delivered each of these vehicles complete with -a set of four tires, the number of tires required for 1916 sales of -automobiles alone was 6,470,832. - -But the tires put out with new automobiles form only a slight -proportion of the total tires sold by tire companies. It is stated -that each of the over three million cars in use in the United States -consumes an average of eight tires a year, so that automobile buyers -are purchasers of probably 20,000,000 tires a year. - -The pneumatic tire was one of the greatest factors in giving the -automobile business its impetus. Charles Goodyear, in a broad sense, -laid the foundation for popularizing the automobile, when, by -accidentally dropping rubber on a stove, he discovered the principle of -vulcanization. - -The development of the automobile was retarded for years, because, -while iron shod horses, it would not successfully shoe automobile -wheels. The greatest obstacle to the mechanical perfection, as well as -to the development of the automobile by general adoption, were road -shock to the automobile and mutilation by the automobile of the roads. - -The pneumatic tire removed both obstacles simultaneously. - -The pneumatic tire was invented by an Englishman named Thompson, who -patented it in 1845. Dunlop, an Irishman, was the pioneer manufacturer -in 1888, and Michelin of France first applied it to the automobile. - -The manufacture of body parts is obviously a tremendous industry, and -while the body is a prime essential to the automobile, it was a part -that existed in horse drawn vehicles, and, therefore, did not play the -part that the pneumatic tire did in accelerating auto development. - -Comparable in importance to the tire was the nonskid chain, the -invention of Parsons, an English engineer, who patented it in 1903. As -the pneumatic tire enabled the automobile to be used more successfully -and in larger numbers in good weather, so the nonskid chain enabled -it to be used in bad weather. Prior to its adoption automobiles were -used to only a limited extent in wet or slippery weather. Its adoption -is credited with having added one month a year to the possible use of -every automobile, a result which would naturally increase the number of -automobiles used, through making them more efficient, and by decreasing -the life of a car through added use. - -Next in importance in extending the field of purchasers of automobiles -was the self-starter, the invention of Coleman, who, though little -known to the public, is the inventor of so many things in electrical -use as to be comparable to Edison. - -The electric self-starter is credited with creating a million -automobile buyers, a large proportion of whom are women, and with -having added nearly 15 per cent to the service of the motor car. - -Other aids to the successful commercialization of the automobile are -solid tires, invented by Grant in 1896; the demountable rim, invented -by Perlman in 1906; sliding transmission, the invention of Dyer; the -nonskid tread, and chambered spark plugs, the latter invented by -Canfield in 1898. Of minor improvements, of which there have been -scores, the most notable were those of side doors, introduced by Marmon -in 1902; tops to bodies, introduced in 1903; speedometer, gasoline -pressure system, carburetor, shock absorber, electric lighting and oil -gauge. - -The evolution of the automobile has been facilitated by every -improvement which makes it easier of operation, and the sale of motor -cars has been increased by them. - -The more one reviews the advance made by the automobile during the -seventeen years of its commercialization, the more one can appreciate -the feverishness characterizing its production, which can be seen and -felt by anyone who visits the automobile manufacturing sections of -Detroit, Cleveland, Indianapolis or Toledo. The demand is so great -for automobiles, and they are being bought in such numbers, that the -factories producing them work at a speed and under a pressure such as -are paralleled in our industrialism only in munitions of war plants. -Busy are the cities where automobile manufacturing forms an important -industry, and busy they are likely to continue for years to come, for -as a commercial industry the business of making and selling automobiles -has not yet even approached high water mark, in the opinion of those -best qualified to judge. - -The country districts have yet to be heard from in louder tones. The -possibilities of the automobile in the country, from a commercial -standpoint, constitute a fascinating subject for speculation. Although -there are over 6,000,000 farm families, only 300,000 automobiles were -bought by them in 1916, indicating that the rural element so far has -not really begun to take hold of the automobile, because the normal -yearly sales of horse drawn vehicles, most of which were sold in the -country, prior to the automobile’s adoption, were over 1,000,000. - -By far the greatest proportion of motor driven vehicles bought in the -country are now passenger vehicles. When the farmer wakes up to the -economic superiority of the motor truck and motor tractor over the -horse, the sales of other forms than passenger cars in the country will -scarcely have any bounds. The best grounds for this belief lie in the -fact that at present there are 5,000,000 horse drawn vehicles in use, -against less than 300,000 motor trucks. - -In this development of the motor freight vehicle in the rural -districts, the matter of education will play its part, as it does in -all evolution, but slowly, as it always does. - -Just as the creation of farm products as a whole is being increased by -educational means, so will the use of the motor wagon in place of the -horse be increased by the farmers’ information and knowledge of its -advantages and saving. - -When the farmers all learn and realize the full extent to which -the use of the work automobile pays dividends on their labor, the -commercializing of this vehicle will be in quantities probably -exceeding those of the passenger car. - - -CO-OPERATION’S PART IN THE AUTOMOBILE’S COMMERCIALIZATION. - -If there is any one idea more than another that is productive of -results in development of large proportions, it would seem to be that -represented by co-operation. - -Individuals may make successes, but they are successes that are limited -in their proportions. - -The era of greatest material development in this country has been that -in the period represented by the last quarter century. This is shown in -the fact that our national wealth during that period has increased in a -ratio unparalleled in any previous period of time. - -Only a little reflection will show that same period to be that period -in which the value and benefits of co-operation in business as a whole -were realized and taken advantage of. - -The principle of co-operation has been known since man learned to -reason. It was applied in the building of the tower of Babel and -of the Pyramids. The foundation of it was a fact that man early in -his evolution from the cave stage discovered—a simple fact plainly -demonstrated, when primitive human beings found that one man could -not lift a battering-ram, but that twenty men could make of it an -instrument with terrifying powers of destruction. - -An aspect of co-operation that was slow in imposing itself on the -understanding of the business world was that if a man conceived a -new idea, and he concealed it from others, he was not only depriving -others of its benefits, but himself as well. In locking the door on his -idea, he locked himself in. He did not reflect that the world rests -on a foundation of co-operation; that nature is co-operative; that -without co-ordination between the planets in space, the cosmic void -would not continue to be occupied; that co-operation is the invisible -chain linking together the world, sun, moon and stars, and without the -binding twine of co-operation they would fall apart like the stalks -from the sheaf when unbound. - -Almost every valuable lesson might be learned from nature if we knew -and fully understood her laws, and co-operation is one of the most -potent of these laws. But it took man a long time to learn even the -rudiments of this law of co-operation—that it supplied a force of a -hundred horsepower where one horsepower was used before; that its moral -influence was tremendous, and that it was to business what the steam -radiator, internal combustion, or the electric storage battery was -to the horseless carriage—a means of propulsion, a driving force, an -agency of high power to produce progression. - -There can be no question that the automobile industry had, in the era -in which fate decreed it should make its debut, favorable conditions. -Not only did this era happen to be the era of a better understanding -of the science and value of advertising, but also the era in which a -better understanding has been gained of the principle and value of -co-operation. - -Standardization in the automobile industry, as has been said herein, -was an important factor in popularizing the motor car. But how could -standardization have been brought about without co-operation? - -Producers of automobiles, even, did not immediately adopt the real -spirit and practice the true principle of co-operation. They formed -an association with that purpose, but in the first meetings they -approached the matter of genuine co-operation like a man walking in his -bare feet on ground strewn with broken glass. - -They kept up the practice of secretiveness; each man was afraid to “put -the other man wise,” still clinging to the ancient practice of hiding -his light under a bushel—an impulse founded on that same semi-savage -selfishness of primitive man which impelled him to hug to his hairy -breast the shin bone of his “kill,” while eyeing his fellow man with -fear, hatred and distrust. - -Gradually, through the influence of minds more original, independent -and far seeing, the glacial reserve was thawed out, and automobile -producers began practicing co-operation in its unrestricted, -untrammelled form. - -With the genial, warming rays of co-operation turned on the industry, -problems of vast quantity production at remarkably low cost, easy and -rapid assembling, inexpensive maintenance, and the vexatious problems -of freight movements to bring in raw material and take out the finished -product for distribution, became no longer work, but fascinating -play. Thus does co-operation make an elysium of the workshop, turn -the darkness of gloom into the light of day, and give grounds for the -belief that if the millennium ever comes, co-operation will be the -vehicle it will be transported in. - -At one stage of the American automobile industry, the European cars -displayed a strength and sturdiness so superior to ours that our -manufacturers nearly despaired. This was another crisis of many in -the industry. But co-operation enabled the cause to be found and the -crisis to be met. The European manufacturers knew why their cars stood -up better than ours, but they wouldn’t tell. This was the same old -dog-in-the-manger that has helped to make the world’s progress slow. -So our manufacturers, co-operating, went to work and found out for -themselves. Tungsten, vanadium and chromium spelled the reason. The -Europeans had been using these and other alloys, and with scientific -heat treatment had been producing a special steel, and keeping it -strictly to themselves. - -Trust the peeking, inquisitorial, persistent “Yankee” to find out when -he once gets well started on the scent. And when there are a lot of -them, all peering and peeking about, what chance has the poor European? -But it is to be doubted if one “Yankee” could have “tumbled” to chrome -steel. It took a combination of them to do it. They didn’t discover the -secret until they were banded together by co-operation. - -Co-operation contributed to the general adoption by the motor industry -of the automatic machining of parts. What that meant in economic -production was the saving of millions in cost of construction, which in -turn got the automobile down to the level of the common people’s price. - -In the adoption of the system which substituted the “machining” of -automobile parts for hand production, the industry instituted savings -of time and labor and therefore cost, one instance of which illustrates -the almost incredible potentialities in scientific economy. - -A block of cylinders, which takes eleven hours to bore by hand, is -bored in two hours by automatic machinery. - - -WORLD YET TO LEARN THE LESSON OF ECONOMY. - -Will the world as a whole ever learn thoroughly the lesson of what the -saving of time means in its equivalent of money? Full realization -of this is practically confined in this day and generation to some -manufacturers, and to most efficiency experts. But the great mass does -not acutely see it. - -The farmer knows that if he takes four hours to go to town when it is -not necessary, he has lost the money represented by four hours’ work. -That is plain to him, but it does not strike him that taking four hours -to haul a load of grain to town by horses when it would take only one -hour to do it by motor truck is throwing money away, and is an economic -waste only in another form. Nor does he quickly see that a motor truck -will perform service more economically than the horse, including -cheaper cost of maintenance. - -He also appears unable to get the same viewpoint on the economic loss -by bad roads, that he does of wasting four hours to go needlessly to -town. - -The farmer has long had demonstration of the economic superiority of -the mechanical reaper over the hand cradle, that of the mechanical -thresher over the flail, and that of the drill over sowing by hand. But -he is slow to see that the motor truck is superior to the horse and a -factor in greater economy as the reaper, the thresher and the drill -were superior to man, while at the same time his liberator from the -hardest types of labor, and an economic saving to boot. - -When all farmers learn the full facts of the superiority of motor -mechanism over horses, only one instance of which is that their cost -per mile haulage is 16-2/3 cents, against 30-7/10 cents for the horse, -a wider use will result. It is only the highly developed efficiency -expert who yet can count a minute of time in its equivalent of cents, -and an hour in its equivalent of dollars. The automobile industry has -had the benefit of the highest quality of efficiency generalship. - -Chalmers was making $70,000 a year with the National Cash Register -Company when an automobile company secured him by promising more. -Flanders was offered by Ford, in addition to his salary, a bonus of -$20,000 if, in the first year of his administration, he would turn out -10,000 cars. By installing the first automatic machine tool system, -which itself was mechanical co-operation, Flanders collected the bonus. - -No industry, except perhaps oil or steel, has paid men such salaries, -bonuses and commissions as has that of the automobile. - -Co-operation by the automobile industry has been pursued in its public -shows for seventeen years—the period of the industry’s greatest -strides—beginning with the first one in 1900 in Madison Square Garden, -New York. The Seventeenth annual auto show was that in New York and -Chicago in January, 1917. - -There are many lines of industrial production in which to this day the -factors have not gotten together in co-operation, lines in which each -producer is working alone, and it is noticeable in many of them that -development is slow and advancement tardy. - -The automobile makers early applied the principle of co-operation -by formal association. They organized the National Association of -Automobile Manufacturers to advertise automobiles at the first auto -show in New York, and to “encourage general practices of mutual -benefit,” a statement of principles that is brief but sweeping. - -Stimulating influences in the formation of this, one of the earliest, -and one of the most comprehensive and sincere co-operative industrial -associations, were the necessity for presenting a united front, which -legislation adverse to the automobile created, and of popularizing and -inspiring confidence in an innovation. Co-operation was further made -imperative by the necessity for better roads. Had the roads of the -United States been better than they were when the automobile first -came into being, the industry might by now be able to write its annual -production in larger figures than 1,600,000 cars made in 1916. - -That the automobile associations have the true principle of -co-operation and not the semi-true or false variety, is evidenced by -the fact that their co-operative efforts have been from the start for -the benefit of the industry as a whole and not for the benefit of -members of the associations alone. They have always admitted to their -councils all manufacturers, whether association members or not, and -co-operated on a free and full basis. - -Broad liberalism has been practiced. The many young men engaged in the -industry have been credited with this. Coming into the business arena -at a late date, they were not handicapped by prejudices and hardening -of the arteries of open-minded thought. They believed in the principle -of “one for all, and all for one,” which is the keynote of co-operation. - -As the world has these men to thank for the constantly enlarging -pleasures and comforts of the automobile, so it has them to thank for -such good roads as there are, for it is as certain that automobiles -have improved roads as it is that automobiles exist. - -The organization of the National Association of Automobile -Manufacturers was followed by that of the co-operative Association of -Licensed Automobile Owners, organized to resist the tightening of the -clasp of the licensor of the Selden patent rights, and by the Society -of Automobile Engineers, and still later by the American Motor Car -Manufacturers Association. The Automobile Board of Trade followed, -and today the trade association is the National Automobile Chamber of -Commerce. Fostering trade, reforming abuses and promoting harmony, were -steadily the aims of all the organizations, and how well they have done -it is attested by the fact that no association of producers has better -demonstrated and more completely justified the valuable principle of -true co-operation. - -Standardization in the automobile business has never discouraged -individuality of the manufacturers in the essentials of form or speed. -It was confined to those directions where appearance was not important. -It never extended to bodies, stream lines or designs that would deprive -a manufacturer of distinctions and selling points. - -It is standardization of detail—uniformity of screws, locks, washers, -spring and bearing parts, water connections, etc. Co-operation -has been practiced intelligently, and the result has been that -standardization favored economical manufacturing by creating a large -demand, calling for quantities that fostered specialization in parts by -manufacturers, with resulting low cost to the automobile maker. It also -left him free to center his efforts, energy and capital on production -in quantity, and himself get down the price of the finished automobile. - -To the thinker, one of the most interesting features of the automobile -industry is this example it has given to the world of efficiency and -co-operation. We are not surprised at efficiency in the steel business -or the oil business, because they are industries conducted practically -by one man power; and if autocratic rule is not efficient, its last -excuse for being might appear to have ceased to exist; but to find -several hundred different manufacturers with divergent ambitions, -ideals and interests benevolently engaged in co-operative competition, -justifies, it would seem, that optimism which sees the world as growing -better. - -Certainly if “by their works ye shall know them,” the progress made -by the automobile industry in the short space of time it has played -the star part on the industrial stage, has been the most splendid -demonstration of the value in commercial industrialism of the -tolerant, broad minded type of co-operation, coupled with efficiency. -It is an example of the value of harmonious co-ordination of the -differing efforts of man in advancing the material progress of the -world, and in the case of the automobile industry, the best assurance -of its continued advance as the moving force in the production of one -of the greatest and most beneficial forms, not alone of transportation, -but of mind culture, of healthful relaxation and of sane recreation. - - - - -CHAPTER IV. - -AUTOMOBILE INDUSTRY AS AN INVESTMENT. - - -A dozen years ago dictionary publishers vied with one another to be the -first to announce that new editions of their wordbooks contained the -word “automobile.” - -Today the automobile industry is the fourth in magnitude—only three -others that are larger. - -Is your imagination equal to the task of forming a vivid picture of the -tremendous activity that has been maintained to produce such results in -so short a time? - -Do you know of any other industry in which money could have been at -work in as great a creative capacity? We will not say in a capacity to -produce immediate profits, because so far the automobile industry has -been largely in the building, in the creative state. - -In 1899 we produced 3,700 automobiles, in this country. In 1915 -we produced 842,249 cars, and in 1916 the production reached the -unexpected number of 1,617,708 cars. - -The value of the production in 1899 was $4,750,000, or about $1,283 a -car. In 1916 the value was $972,336,400, an average of a little over -$601 a car. - -In 1916, also, we produced 92,130 commercial vehicles, valued at -$157,000,000. - -And this is not all. A comprehensive survey of the automobile industry -will include the industries that the automobile has created, as -manufacturing tires and accessories, and not to forget the enlarged -market for gasoline and oil. As the jokesmiths have it, “It isn’t the -original cost, but the upkeep that counts.” - -For illustration, in the matter of tires, C. H. Williams, of the -Goodyear Tire and Rubber Company, who is in a position to know, said -that in 1916 the motorists of the United States took from their wheels -and replaced some 9,000,000 tires, representing an expenditure in that -year of about $300,000,000 for tires. - -Any motorist can draw from his experience and compare the expense for -tires with that for gasoline, and from these tire expense figures -arrive at a reasonably accurate estimate of the tremendous amount of -money that was used in 1916 in paying for gasoline to run automobiles. - -By way of an interpolation, it may here be remarked that these tire -figures show that there is one problem in the automobile industry that -the engineers still have to solve, and that is to produce a wheel that -will give satisfactory service without requiring a pneumatic rubber -tire. - - -LITTLE ORIGINAL CAPITAL INVESTED. - -The remarkable thing about the automobile industry is that, in -comparison with its present magnitude, there has been but little -original capital invested in it. Today the industry represents a large -investment, to be sure, but the bulk of it is made up of profits on -the original small investment. Companies started with small original -capitals, made money, and used some of it to enlarge plants and -increase outputs, until today we have the gigantic institutions that -some of these companies are. - -The automobile industry has been and is one of the most convincing of -modern proofs of the efficacy of the science of investment in operation. - -During the first few years of experimenting, before the engineers -produced a car that would run in a reasonably satisfactory manner, -the industry offered investors only what might have been called the -inventor’s chance. These years were followed by a short period devoted -to determining whether there was a market for the automobile. - -During the time of experimenting and determining the market the -average person could not be expected to become very enthusiastic -over an investment in the industry. The average person has not clear -vision in matters of this kind, and, lacking vision, he can not bring -imagination to his aid. - -And in those early days it required clear vision, good imagination -and exceptional ability to reason from probability to fact to see the -coming greatness of the automobile industry. - -A few courageous men had this vision and this ability, and to them is -due all credit for the establishing of the industry. In time others -might have done it, but these men did it. - -The making and marketing of automobiles that would run had but fairly -begun when their popularity became so manifest that even an average -person could see that the automobile industry was bound to become great -and profitable. - -Here, then, was an opportunity for scientific investment that was -prodigious in possibilities. - -Those who were intelligent enough to see it and progressive and -courageous enough to avail themselves of it, and did so, today form -another set of rich men. - - -DIFFICULTY IN GETTING CAPITAL. - -The industry had great difficulty in getting capital. It was a new -line, a new venture. Bankers and other “conservatives” could see -nothing in it. They used their pet weapon of crying “speculation”, -“hazard”, “risk”, and so on, to keep people from investing in it, and, -of course, did not invest in it themselves, or aid it in any way to get -started. - -But since the beginning of this century, when the automobile industry -began growing, many of our people have, among many other things, built -the great automobile industry into what it is, and made money. Not only -this, but they will build it still greater, and make still more money. - -Before we get through with this little analysis we will see that the -automobile industry has not been more than half built thus far, and -that the really big profits in it are yet to come, because so far much -of the profits have been used in building the industry. - -This industry is, therefore, a fertile field for scientific investment. -Many companies that are quite well established need more capital to -enlarge their activities, and there are comparatively new companies, -and there will be more, having very good propositions in which the -prudent investor can find excellent openings for putting a little money -at work under advantageous conditions. - - -DEALERS PUT UP THEIR OWN MONEY. - -In speaking of the early financiering of the automobile industry, it -would be unjust not to mention the aid that automobile dealers gave -it. It is a fact that if dealers had not supported it in the way they -did, it would not be where it is today. - -Bankers who could have furnished the money and should have done so, did -nothing. They were too “conservative” to recognize a new industry. - -And so dealers stepped into the breach and became bankers to the -industry. - -In the days when the automobile manufacturer was confronted with the -problem of getting money to pay for making cars for which he had or -could get orders, some financiering genius devised the plan of giving -the dealer exclusive territory for the sale of a car. In return the -dealer placed an order for a certain number of cars to be delivered in -small lots from month to month throughout the period of the agency. - -Another consideration for this exclusive agency was that the dealer -made a cash deposit on each car at the time of entering into the -contract. The monthly shipments were then made C.O.D. for the balance -due on the cars in each shipment. - -The advance deposit enabled the manufacturer to make cars for the first -shipment, and the collection on the shipment enabled him to make cars -for the second shipment, and so on. - -To manufacture and sell 1,617,708 cars in a year, as we did last year, -appears like an impossible task, especially when we consider that only -a negligible number was sold abroad. - -The fact is that nearly all the manufacturers, especially those of -popular cars, could have sold many more, had they had the facilities to -make them. - -In the midst of this condition some persons of narrow vision were -wondering if there was a further market for cars, and were talking -learnedly, as they thought, about the point of “saturation” having been -reached. - -In the meantime the big men in the industry were saying nothing. -Instead of talking, they were laying their plans to make and sell twice -as many cars in 1917 as in 1916. - - -PRODUCTION NOT YET AT ITS HEIGHT. - -There will come a time when the automobile industry will reach its -height in production, but that time has not yet arrived, nor is it -within calculable distance. - -Statisticians show us that there are over 5,000,000 rich people in this -country. Many of these have, and more of them will want, each several -cars, each of a different type and for a different purpose. - -We have about 8,000,000 farms. Many farmers already have cars, but only -a few compared with the many who will have them as soon as they have -become convinced of their utilitarian value aside from pleasure. The -farmer is a practical person and “must be shown.” Give it time, and the -automobile will prove itself to him. - -Then we have several million persons who can not be classed among the -rich, but who are in such reasonably comfortable circumstances that -gradually they will become owners of popular priced cars. - -And we must not forget the element that is “keeping up with Lizzie.” -Those of this class will also pay toll to the automobile industry. - -And so far only between three and four million cars, including pleasure -and commercial cars, are registered in this country. - -Talk about the point of saturation. As yet it hasn’t begun “casting its -shadow before”, much less having arrived. - -Nor does it require prophetic vision to say at this time that the -commercial car is destined in due time to surpass the pleasure car in -number. - -So far the commercial car has but fairly been tested. In 1915 we -produced 50,369 commercial cars. In 1916 the number reached 92,130. -From now on this branch of the industry is likely to increase more -rapidly than did that of the pleasure car. - -It has already been proved that the commercial car has a possible -larger field than has the pleasure car. - -A man may not feel that he can afford a pleasure car, but his business -is such that a commercial car is profitable in it. - -Then again a man may have two or three pleasure cars, but in his -business he may have use for two or three hundred commercial cars. - -The business world is just beginning to realize the value of the -commercial car. Not only does it cost less by the ton or trip to haul -in a motor car than with horses, but more can be accomplished in the -same time. The teamster may require six hours to make a trip that the -motor car driver can make in less than an hour. Business men, great and -small, will soon learn this, and the commercial car industry will grow -accordingly. In fact, the demand is already ahead of the supply. - - -TRACTOR AS A PROMISING INVESTMENT. - -The tractor, a motor vehicle used to haul other vehicles or machinery, -is a product that must also be classed as a branch of the automobile -industry. - -It has already been demonstrated that a good tractor is the lowest -priced power that can be applied in the work of hauling tools or -machinery that must move forward to do their work. Also that it is the -only form of power with which a man can perform a prodigious amount of -work in a day. - -The tractor industry is, comparatively, in its infancy, but it has -already assumed substantial proportions. It seems destined, in one form -and another, to surpass the commercial car industry. - -Recently one of the Ford Motor Company’s leading engineers secured a -patent on a device to convert an automobile into a tractor. This is -done by substituting tractor wheels in place of the rear wheels of the -automobile, and by reducing the power transmission gear so that the -power of the motor will be used in pulling a load instead of giving -speed. In other words, the car in the form of a tractor will be run -very slow and the power saved in this way will be applied to pulling -the load. - -The wheels may be changed in a few minutes from pleasure to tractor, -and from tractor to pleasure. With this device the farmer can have his -car for pleasure and business trips, and when he gets ready to do farm -work he can convert it into a tractor to do the work of half a dozen -horses or more, and at very much less expense. - -A valuable feature of this invention is that when a car becomes worn -out for pleasure use it will still be as good as a new one to form a -tractor with this device. - -The device was thoroughly tested in all kinds of farm work throughout -the season of 1916, and found to work perfectly and highly -satisfactorily in every way. - -The progress of the automobile industry has surprised some of our -ablest economists, and it has given the long-faced, wiseacre, -conservative financier a clean knock-out blow. - -Having no precedent to guide them but human nature, the economists were -unable to arrive at satisfactory conclusions in regard to the future of -the industry and it ran away from their estimates. - -Mr. J. George Frederick, of the New York Business Bourse, is perhaps -in possession of more business facts, figures and data of all kinds -than anyone else in this country, and is regarded as one of the highest -authorities on business economics. - -“Writing on this phase of the automobile industry in the October, 1915, -number of the American Review of Reviews, Mr. Frederick said: - -“With 2,000,000 automobile owners today, and every indication that -the annual production will be more than the 703,000 produced this -year, we face in plain facts a probable annual sale of over 1,000,000 -automobiles every year, on an average, for the next five years at -least. Until the automobile became popular there were about 1,000,000 -carriages sold each year, and as these were undoubtedly sold mainly to -rural and suburban population there is sound reason to believe that -2,000,000 automobiles per year is not an extravagant future prediction -in the slightly more distant future.” - - -PRODUCTION RAN AWAY FROM ESTIMATES. - -Note that this was written at least three months before the close of -the year 1915. The production of automobiles for that year, as we have -seen, was 139,249 greater than that given by Mr. Frederick at the time -he wrote. - -The interesting thing in Mr. Frederick’s prediction for the future -is that the industry ran away from his estimate the first year after -he made his prediction. He prophesied a production of 1,000,000 -automobiles a year for the next five years. The following year, 1916, -the production reached 1,617,708 cars. This is not against him, because -the automobile industry is going forward by such leaps and bounds as -to smash all conservatism. His estimate but indicates that his further -prediction of a probable production later of 2,000,000 automobiles a -year is likely to be more than fulfilled. - -In this connection we must take into consideration that the earlier -made cars are beginning to wear out and are being replaced by new ones. - -Also that many persons who bought so-called cheap cars at first are -discarding them and buying higher priced new ones. - -The time will come, of course, when the sale of automobiles to new -users will begin to decrease, but as these sales decrease the sales of -cars to take the place of old ones will increase. When we reach the -time when the decrease of the one will equal the increase of the other -we will arrive, approximately, at the point of saturation that is now -worrying timid and unimaginative persons, and not until then. Every -feature of the industry indicates that we have not travelled more than -half the distance to reach that point. A more rational estimate is that -we have not travelled much more than a fourth of the distance. - -Until we reach that point the automobile industry will be in the -formative period, in the creative state. It will be growing larger -and larger, and will be earning more and more from year to year. But -some of the earnings will have to be kept in the business to acquire -additional equipment and as a greater working capital. But earnings -used in this way will become additional assets back of automobile -securities to enhance their values—to create accretive values. - -When the saturation point is finally reached the industry will settle -down to be one of our most stable and profitable manufacturing lines. -Not until then can the tremendous profit possibilities in it be -definitely reckoned. - - -EARLIER THE INVESTMENT, GREATER THE PROFITS. - -These conditions being true, it should be clear that the earlier an -investment is made in the industry, the greater will be the profits. -Spectacular profits will be made before the saturation point is -reached, and to get all the tremendous accretive values that accrue -in this industry the investment must be made at the beginning. The -further removed from the beginning the investment is made, the more the -investment will cost and the lesser will be the accretive value as well -as the income on the investment. - -This is a fundamental principle in the science of investment. - -When the saturation point is reached manufacturing automobiles will -settle into an industry to supply a daily necessity. There will be -keener competition, the price of cars will be lowered, and the profit -on each will be correspondingly less. The industry will be similar to -those of making hats, plows and shoes. It will carry a substantial -profit, but not a spectacular one as now and for many years to come. - -It seems, then, that, large as it already is, the automobile industry -is still in its comparative infancy—that it has before it a reasonable -possibility of more than doubling its present proportions. - -While there are several large companies that will continue to produce -large numbers of cars each year, it is not reasonable to expect that -these companies will grow from this time forward as they have in the -past. - -The expansion of the industry may rather be looked for in younger and -smaller companies that will put out cars to meet some particular demand. - -The investor in the industry could scarcely be said to be using good -judgment if he undertook to help to build a company to put out a car -to compete with the Ford car, for illustration; that is, to put out a -car at the same price and that he would expect the public to buy in -preference to the Ford. It may be possible that the thing can be done, -but off hand it would seem like taking an undue chance. - -Nor is a Ford proposition necessary to make money in the automobile -industry. This has been demonstrated sufficiently. - -The Ford car fills a particular want of many people, but in the main it -is a builder of the industry as applied to more elaborate and higher -priced cars. It prepares a market for others. - -The investor should seek to get into the business of supplying the -demand in that market. - - - - -CHAPTER V. - -BENEFITS CONFERRED BY THE AUTOMOBILE. - - -That the automobile is one of the greatest boons to mankind will -probably be admitted if all its benefits are fully understood. - -The best teacher, it has been demonstrated, is one’s own experience. In -learning anything, the mind can never grasp the lesson it is told, with -the same understanding it receives when the lesson is visualized by the -eye. - -Travel is acknowledged to be a good educator and to broaden the mind. -This is because the eye sees and takes its own impressions, and does -not depend on the impressions of others. Reading books of travel never -instruct as does travelling itself. - -The automobile is a healthful, exhilarating method of conveying people -to persons, places and scenes that, before the automobile, they knew of -only by hearsay, or by reading of them. - -To estimate the extent to which this informs and instructs, we need -only go back in memory to the isolated farm of a quarter of a century -ago, and vision the limited horizon of the general knowledge at first -hand of the farmer’s family. Practically all the current knowledge they -had was from reading, occasionally going to town or through visitors -whose appearance was rare and made at long intervals. Seeing a new face -in those days was a rarity. - -The situation with a majority of the people in the country, before the -automobile, was very much like the isolated farm family. It was like -that of the entire country before the advent of the railroad. - -No greater agencies for instruction in first hand knowledge than the -railroad, the steamboat and the telephone had been introduced into -civilization up to the time of the automobile. Now the motor car -penetrates into places where the railroad, the steamboat, or even the -telephone does not go. - - -MEDIUM OF DISTRIBUTION OF KNOWLEDGE. - -Exchange of ideas between people is the life of wider knowledge, as the -exchange of commodities is the life of world trade, and the automobile -is the medium of exchanging information as money is a medium of -exchange of commodities. - -From time immemorial the greatest advancement of the human race has -been made in groups; and the larger the groups, the higher the thought, -and the more progressive the accomplishments have been. Big cities have -surpassed small towns; small towns have been in advance of the country. - -The reason for this is the greater opportunity afforded by numbers -for the exchange of ideas and knowledge. The citizen of Rome or of -Venice had the advantage of personal contact with numbers of citizens -which the isolated rural Latin was denied, as the citizen of London, -Paris, New York or Chicago has, before his own eyes, the thought and -achievements of millions which the citizens of the country only hear of -or read about. - -The railroad first enabled the resident of the country to go to the -small town, and the resident of the small town to go to the big city, -and by personal contact gather the fruits of himself seeing the results -of community or group work, which, before, had been monopolized by his -city brother. - -The automobile supplements this work of the railroad, and is even -more widespread as it enables more frequent visits to be made, and -penetrates regions the railroad does not reach. What was a frontier is -now a suburb, while the suburb has become the downtown. The motor car -has opened up the far reaches as nothing else has done. - -Bigotry and prejudice are the fruits of ignorance. Where knowledge is -they will not abide. In enabling people to acquire knowledge in their -own way—the way that most impresses knowledge on them—the automobile -is changing the thought and the habits of the denizens of the entire -country. It is broadening the human mind, by giving it a solid -foundation to work on. - -In the courts of law, among judges, lawyers and court attendants, it -is notorious that no two witnesses ever testify exactly to the same -set of facts. There is a variation of detail, and many times there has -been such a difference in the statement of material facts that the -dispensing of exact justice has been defeated. - -This condition is ascribed to the fact that few people are trained -observers. The automobile is correcting this popular defect more than -any other one agency—by education. It is educating people to exact -observation and precise knowledge. - - -LIBERALIZING THE PEOPLE. - -The automobile is a factor in creating open minds. When one travels -extensively, notions and prejudices, based on false conceptions, are -amended and revised by observance of the facts. In this respect the -automobile is conferring on the masses a benefit which, before its -advent, was confined to the classes. Time was when broad and liberal -views were generally the possession of the rich, who alone could afford -to indulge in contact with their fellows many miles distant. Now the -automobile has aided in making broader views the possession of anybody -able to own a motor car. - -The degree in which the social life of the world has been benefited -by the automobile is the favorite theme of the enthusiast on the -automobile’s advantage to mankind. This phase of the automobile’s value -is of less importance than is its benefit in informing and enlarging -the horizon of the mind, but the social advantages which the use of -the motor car confers are not to be underrated in an age when the most -favorable mental conditions are recognized as of equal importance to a -desirable physical state. - -The happiness of the human race is added to by social enjoyment, and -the automobile is a most important link between isolation and human -intercourse. It has rendered the means of communication between -people so easy and pleasant that it has encouraged and increased -their association. Everybody is brought into greater accessibility -to everybody else. The farmer with his family can visit his neighbor -farmer and his family, many times now to once formerly. - -What was formerly a long, arduous journey taken at the expense of -pleasure as well as of time, is now an exhilarating spin. The farmer’s -wife and daughters can now go to town more frequently, and multiply the -number of their visits to friends. The automobile is the emancipator of -the farm woman, bringing the scope of her activities out of the narrow -circle of routine drudgery and monotony into the larger circle of -inspiring activities. - -Farm women’s clubs have been given an impetus, through the fact that a -woman may attend one in the afternoon with the assurance that by the -use of the automobile she can return home in sufficient time to get -dinner, which she could not do by the use of the horse. - - -FACTOR IN PROMOTING SOCIABILITY. - -The city man’s wife in the suburbs can visit her friends oftener -and more quickly, and the facility of speedy movement has given to -suburbanites the benefit of the last acts at the theatre and the opera, -whereas, before the automobile, they missed them in order to catch the -last train. - -The benefit of clergy has been immeasurably enhanced by the automobile, -which, also, in addition to being itself an educational agent, has -employed its speed and facilities in economizing time to increase the -attendance in the schools. There are districts in the United States -where children can not reach school in time without the use of the -automobile. - -What the automobile does for the city dweller, in enabling him to see -the last act at the theatre or hear the last act of the opera, it does -for the people of the farm in enabling them to spare the time to attend -dances, sociables, entertainments and motion picture shows. Where -formerly the time required to drive a horse made it impossible to spare -the time, now time is scarcely a factor. The change must inevitably -react to the advantage and benefit of humanity, if all work and no play -makes Jack a dull boy. - -The health advantage of the automobile is a subject on which there is -a difference of opinion among medics. The ordinary layman, however, is -disposed to cast his verdict in its favor in this respect also. Some -physicians have expressed the opinion that the only respect in which -the automobile is noticeably not a benefit is in the matter of health. -Some of them think it does not give people enough exercise, and that at -the rate its use is increasing it will not be long before man loses his -ability to use his legs! - -It would be a catastrophe indeed if the human race, through the -automobile, reverted to the condition when primitive man, according to -the Darwinian theory, swung by his hairy arms from tree limb to tree -limb, using his feet only as a stabilizer. But nobody, unless a writer -for a newspaper Sunday magazine section, is likely to maintain this -seriously, and he only pretends to be serious. - -Whatever man loses in disuse of his legs by riding, as compared with -walking, may be said to be made up for by his use of them on levers of -automobiles and in the other exercise or operation of a car. The fresh -air and the sunlight—the great outdoors—are the big health factors in -motoring, and man will go on taking a chance to experience these and -other delights the automobile has to give. - - -AS AN ELEMENT IN EUGENICS. - -And as still further offsetting the possibilities of decay of the human -legs, which certain physicians predict, more constructive medical men -have discovered that automobiling is becoming a factor in one phase of -eugenics. It may not receive endorsement as a benefit in all eugenics -as long as the charge can be made that since the use of the motor -car the birthrate in Kansas has decreased, the discoverer accounting -for this alleged fact on the theory that the expense of keeping an -automobile discourages Kansans from assuming the expense of large -families, but in one direction it is attempted to prove that the breed -of certain Americans is being improved by the automobile, and in this -way: - -In certain parts of the country, particularly the Southeastern states -close intermarriage is said to have been, in part, due to the inferior -facilities for transportation, before the automobile came into use. -Young men, it is said, courted and married their sweethearts, in the -days when the buggy was king of local communication, within an average -radius of five to ten miles, which accounted for people in those -sections being cousins or otherwise related to one another. - -Now that the automobile makes a thirty-mile or fifty-mile radius the -equivalent of the five-mile or ten-mile buggy radius, the swains are -seeking mates further afield, thus getting away from alliances with -relatives, and there is a consequent decrease in the mixing of blood -strains. - -If this is true, tally one more in the score of benefits for the -automobile, for it is the verdict of science that intermarriage between -those of the same blood does not produce the best types, any more than -does the interbreeding of other animals. - -But in enumerating the benefits of the automobile its economic value -easily comes next in importance to its service in imparting knowledge. -Its health value may be a matter of difference of opinion, and its -social benefits are comparative, but there can be no dispute about its -educational value, and still less about its economic worth. - -The factor time has taken on a new meaning and significance with the -automobile’s accomplishments in speed. Time is a vital element in -the affairs of life. If the automobile’s educational value can be -expressed by the adage, “Seeing is believing”, its economic value can -be similarly expressed by the adage, “Time is money”. - - -PART PLAYED IN ECONOMICS. - -Time is likewise life under some circumstances, and because of this -fact, the professional men who were first to make practical use of the -automobile were physicians, commandeering it in behalf of life itself. -How many lives have been saved by the automobile, which would have -been lost through the slow going gig or phaeton, it is not possible to -say, because there is, of course, no exact record, but the number is -large. The mortality of today among people is greatly reduced from that -of twenty years ago. The advance of science has, of course, brought -this about, but the automobile is an important instrument of medical -science, just as are the X-ray, the stethoscope and the pulmotor. - -And the same cause—the element of time—which operated in the adoption -of the automobile by the physician to the human body, has forced the -veterinarian to use the automobile. This is irony—for the horse—and -another nail in the equine coffin, but it is at the same time another -demonstration of the automobile’s superiority in efficiency over that -animal. - -The farmer demands that the veterinarian shall come in an auto to -attend his sick horses or cattle, because he will not take the chance -of death through delay. And this is scarcely gratitude—by the farmer to -the horse—but it is economic pressure. - -At every turn in the road of the automobile’s advance, we see its -economic value. We see in cities that the big department store is able -to cut down its delivery expense from $990 to $350 a day by using a -fleet of motor trucks instead of horse drawn wagons; that coal, ice, -groceries, feed—practically all commodities in cities—can be delivered -by motor trucks at a large saving of cost. Contractors, plumbers, -plasterers, tinners, and craftsmen in substantially all lines, -have figured it out and concluded that with the facilities of the -automobile available, the horse is a distinct economic waste in their -businesses. - -The possibilities of similar economy by the farmer in the substitution -of motor power for horse power have been indicated by many progressive -farmers who have by experiments demonstrated that the cost of hauling -and cultivating with motor wagons and machinery is less than by using -horses, but the general economic saving by the use of the motor vehicle -in hauling cannot get its fullest and conclusive demonstration until -better roads are more numerous. Where roads are nearly perfect, results -have shown the cost of horse hauling to be 30 cents a ton, against 14 -cents a ton by motor truck, by the mile, figuring everything. - - -INFLUENCE IN GETTING BETTER ROADS. - -By far the direction in which the automobile has forced on conviction -most strongly its economic potentialities, is in the matter of better -roads. No greater tribute to the educational value of the automobile -could have been paid than was paid to it by President Wilson when he -signed the Federal Good Roads bill which puts $85,000,000 of national -money against an equal amount by the states, into making better -highways. It was the popular demand for better roads, following the -general use of the automobile, that gave the country the improvements -made in roads in the last fifteen years, and it was the demand from the -same source for more of these improvements that resulted in the Federal -Good Roads law. - -Until the coming of the motor car the good roads issue possessed little -vitality. For seventy-five years the Federal government exercised a -passive policy toward building permanent highways. Railroads pushed -into virgin territory, cities sprang up along the right of way, but the -rural arteries of travel remained in the same hopeless condition as -when the pioneers waded through them afoot or on horseback. - -With the first motor car came the first feeble impulse to the good -roads movement. The first cars were sold to city men, who very quickly -found out that where city pavements ended, there ended all hopes of -further travel. Pneumatic tires availed nothing against trackless -stretches of gumbo mud or corduroy roads. With the mechanical -improvements in motor cars, the owners chafed at their limitations and -demanded better state roads. - -As a result of the agitation, many states have become active in -promoting their own road systems, and quite a little has been -accomplished in some localities; but the sum total of improved roads -in the United States today is only 250,000 miles out of a total of -2,275,000 miles of roads. The Federal roads bill will give an impetus -to state work on roads, and as its appropriation covers the next five -years, 1922 should see a large increase in the miles of improved roads -in the country. - -The results in benefit to the agriculture of the country in a general -system of good roads, will be most felt through the facility it -will give the farmer in marketing his products. With the aid of the -motor truck, the farmer may be able to meet, in many cases, the -congestion-of-freight-by-railroad problem. - -Adding to its other benefits, the automobile promises to be an element -in the reduction of the high cost of living, and if it does aid in this -it will be in two directions, first, as a freight carrier, and, second, -by displacing the horse. - - -FACILITATING THE PASSING OF THE HORSE. - -A horse, it is estimated, consumes each year the production of five -acres of land. There are 21,000,000 horses in the United States, and -therefore the fertility of 100,000,000 acres is enlisted annually in -behalf of this animal. If this area, which is as great as Ohio, Indiana -and Illinois combined, were released from this burden, and the products -were human food, a very large addition would be made to the food -stuffs of which the world is in such sore need. - -The elimination of the horse is progressing at a very rapid rate -in cities, and the prediction is made that it will come to an end -ultimately in the country, and that a horse in future will be only a -pet or an element in sport. Thomas A. Edison has decreed the horse’s -life for practical, general use, to be only ten years. Those who -foresee his passing on the farm say that automobile engineers are -working on small tractors which will be practicable in the cultivation -of farms as small as 60 acres, and that they will ultimately be gotten -down to a price which will not exceed the original cost and upkeep of a -horse, and will do more and better work in the field. - -The list of benefits conferred by the automobile is incomplete, if its -use in war is omitted. It has been said that it saved France twice -during its latest war. When the onrush of Germans in 1914 brought them -almost within sight of Paris, General Gallieni, then Governor of Paris, -rushed troops by the thousands in motor vehicles to the aid of General -Foch. They turned the tide and made possible the victory of the Marne. - -Motor trucks saved Verdun. The German advance had cut the French -railway connections. Horse drawn wagons never could have brought the -supplies. Motor trucks did. Had there been no such things as motor -trucks, nothing, it is claimed, could have saved Verdun. - -In war or peace, then, the automobile is a factor. As an agent in the -advance of civilization it occupies a secure place. It has doubled the -population of at least one city, and has given new life to others. - -In forcing good roads it has enhanced the value of agricultural land. -It is a well settled fact that the increase in selling price of farm -lands through good main market roads is from one to three times the -cost of the road improvements. - -The likelihood is that with the increased use of the automobile, -benefits from it will multiply. These benefits are, naturally, not as -great with only three and a half million automobiles in use as we can -well imagine they would be with the use of the motor car practically -universal for passenger, hauling and farm cultivation purposes. - -Much bigger things for the automobile than it has yet accomplished can -be safely predicted. - - - - -CHAPTER VI. - -REPORT ON AUTOMOBILES, AUTOMOBILE ACCESSORIES AND TIRE MANUFACTURERS’ -SECURITIES FROM A FINANCIAL AND INVESTMENT STANDPOINT. - -Compiled specially for use in this book by THE BUSINESS BOURSE -INTERNATIONAL, INC. New York City. - -(1) Economic history and its relation to stock trading in the -automobile industry. - -(2) Securities of companies traded in on New York Stock Exchange. - -(a) Names of companies. - -(b) Amount of stocks and bonds outstanding. - -(c) Par value traded in during 1906-1909-1912-1916. - -(d) High and low prices—range of each class by chart. - -(e) Dividends or interest paid. - -(3) Securities of companies traded in on New York Curb Market -1906-1909-1912-1916. - - (a) Names of companies 1906-1909-1912-1916. - - (b) Amount of stocks and bonds outstanding 1906-1909-1912-1916. - - (c) Number of shares traded in during 1906-1909-1912-1916. - - (d) High and low prices—range of each class by chart. - -(4) Securities on various exchanges in other cities and data for 1916. - -(5) Principal companies whose securities are not generally traded in. - -(6) Some leading examples of prices and terms and promotion plans upon -which securities were put out. - -(7) Newer entrants into the security market. - -(8) Security issues of tire companies. - -(9) Some leading examples of appreciation or depreciation in value of -such stocks since they were put out. - -(10) General comparison with - - (a) Railroad securities. - (b) Steel and iron. - (c) General industrials. - (d) Mining. - (e) Chart illustrating above. - -(11) Present trend of values of - - (a) Automobile securities. - (b) Automobile accessory securities. - (c) Tire securities. - -(12) Possible future trend in automobile industry as a basis for the -future outlook for 1917 on its securities. - - -ECONOMIC HISTORY AND ITS RELATION TO STOCK TRADING IN THE AUTOMOBILE -INDUSTRY. - -That it may be possible to comprehend the tendencies and probable -trend of activity in the motor stock market, it will be necessary to -look back at economic conditions which prevailed at the time of the -automobile’s infancy, and at the conditions during various periods -since then. - -No industry in our times has shown such phenomenal growth and in no -country has its development been so marked or reached such proportions -as in our own. - -In the earliest stage of the industry, the automobile was accepted as a -fad, and it has been stated that the American people took hold of the -fad as an intoxicant, paying as high as from $6,000 to $12,000 for a -car, and reveled in all the natural resultant vices of extravagance, -snobbishness, excess and carelessness. Houses were mortgaged and ruin -was accomplished for many who paid high prices and then could not stand -maintenance and repair cost. - -The relative effect on business then became apparent. Bankers protested -and entered complaint against the automobile as a degenerating factor -in life. Automobile manufacturers expanded lavishly, over-capitalized, -undertook to effect great stock-jobbing consolidations, until -conservative financiers took steps to stop the harmful waste and -inflation and many bubbles burst. - -During this period, therefore, stocks of the automobile group were -looked upon skeptically, and were scarcely known in the legitimate -market before 1912, with the exception of a few scattered stocks, some -of which are now altogether out of existence or merged in new companies. - -While stock trading did not come into general prominence until within -the last five years, it is agreed that economic conditions have had a -big influence in bringing about this recognition. - -In further considering the outlook in this industry, it is necessary to -analyze the buying power of the population. This will have a decided -effect upon stock activity, which the remarkable history of this -industry has placed in a class almost by itself. - -The people of the country never before enjoyed the money earning -possibilities now in order, but to offset this is the high cost of -all articles going to make up the necessities and luxuries of our -increasingly complex modern existence. - -In 1906 there were registered (mostly by buyers of an earning capacity -of $3,000 or more) 48,000 automobiles. Since then registration has -increased 5,000 per cent, due to the changes in the average price -of automobiles. Investigation shows that the average price of an -automobile in 1907 was $2,123, while in 1916 it dropped to $820. - -_The following chart shows the changes in the average price of -automobiles since 1904:_ - -[Illustration: Chart] - -In very few years this infant industry has grown to rank as one of the -most important in this country, and it is plain to see how conclusively -the industry’s influence has produced an economic effect upon our -national life. The farmer’s life has been made more attractive. Cities -have expanded into suburbs, thus affecting and influencing values on -both urban and suburban real estate. Good highways are demanded. Thus -it can be recognized the strong hold this industry has upon the nation -at large, nor do present signs indicate that it will cease to grow. - - -SECURITIES OF COMPANIES TRADED IN ON NEW YORK STOCK EXCHANGE. - -In making an analysis of this subject an expose along the following -lines will disclose a definite basis upon which to make a survey of -the history of past activity in the securities of a given industry, -comparisons with other parallel industries, the present condition of -markets for securities of these industries, and a forecast of what the -general tendencies are likely to be. - -The securities of the companies manufacturing automobiles, automobile -accessories, and tires which have been traded in on the New York Stock -Exchange for the years 1906, 1909, 1912 and 1916 are shown in the -following tabulation, which gives an interesting exhibit from which it -is readily seen how this young giant of modern industry is the product -of comparatively recent growth: - - 1916 1912 - Name High Low High Low - Ajax Rubber Co. 89-1/8 63 ..... ..... - Chandler Motor Co. 131 88 ..... ..... - General Motors Co. (C) 850 405 42-7/8 30 - (P) 128-1/2 108 82-3/4 70-1/4 - B. F. Goodrich Co. (C) 80 57-1/8 81 60-1/4 - (P) 116-3/4 110 109-1/2 105 - Kelly-Springfield Tire Co. (C) 85-1/4 56 ..... ..... - (P) 101 95-3/8 ..... ..... - Lee Tire & Rubber Co. 56-1/2 25-1/8 ..... ..... - Maxwell Motors (C) 99 44 ..... ..... - (1-P) 93 65 ..... ..... - (2-P) 60-7/8 32 ..... ..... - Saxon Motors Co. 84-3/4 63-7/8 ..... ..... - Stutz Motor Co. 79-1/2 48-1/2 ..... ..... - Studebaker Motor Co. (C) 167 100-1/8 49-1/2 30 - (P) 114 108-1/4 98-1/8 90-1/2 - U. S. Rubber Co. (C) 70-3/4 47-3/4 67-7/8 45-1/4 - (P) 115-1/4 106-1/8 116 105-5/8 - ..... ..... 85-1/2 75 - White Motor Co. 59-3/8 45 ..... ..... - Willys-Overland Co. (C) 81-1/4 34 ..... ..... - (P) 117 94 ..... ..... - Rubber Goods Mfg. Co. ..... ..... 107 105 - ..... ..... ..... - - 1909 1906 - High Low High Low - Ajax Rubber Co. ..... ..... ..... ..... - Chandler Motor Co. ..... ..... ..... ..... - General Motors Co. (C) ..... ..... ..... ..... - (P) ..... ..... ..... ..... - B. F. Goodrich Co. (C) ..... ..... ..... ..... - (P) ..... ..... ..... ..... - Kelly-Springfield Tire Co. (C) ..... ..... ..... ..... - (P) ..... ..... ..... ..... - Lee Tire & Rubber Co. ..... ..... ..... ..... - Maxwell Motors (C) ..... ..... ..... ..... - (1-P) ..... ..... ..... ..... - (2-P) ..... ..... ..... ..... - Saxon Motors Co. ..... ..... ..... ..... - Stutz Motor Co. ..... ..... ..... ..... - Studebaker Motor Co. (C) ..... ..... ..... ..... - (P) ..... ..... ..... ..... - U. S. Rubber Co. (C) 57-5/8 27 59-1/2 38 - (P) 123-1/2 98 115 104-3/4 - 89-1/2 67-1/2 87-1/2 75 - White Motor Co. ..... ..... ..... ..... - Willys-Overland Co. (C) ..... ..... ..... ..... - (P) ..... ..... ..... ..... - Rubber Goods Mfg. Co. 105 105 43 42 - ..... ..... 108-1/2 100 - - - Sales in - Dividends Bonds 1,000 High Low - Name Paid Outstanding 1916 1916 1916 - - Ajax Rubber Co. 1916—10 % None ..... ..... - Chandler Motor Co. 1916— 7 % None ..... ..... - General Motors Co. (C) 1915—50 % - 1916—25 % - 1909—150 % Stk. Div. - (P) 1911 to 1916 (inc.)—7% None - B. P. Goodrich Co. (C) 1912—2 % - 1916—4 % - (P) 1912—3-1/2% - 1913 to 1916 (inc.)—7% None - Kelly-Springfield - Tire Co. (C) 1915— 6 % - 1916—16 % $270,000 - (1-P) 1914—3% - 1915-6 6 % - Lee Tire & Rubber Co. 1916—$2.25 per share None - Maxwell Motors (C) 1916—2-1/2 % - (1-P) 1915—5 % - 1916—7 % - (2-P) 1916—1-1/2% None - - Sales in - Dividends Bonds 1,000 High Low - Name Paid Outstanding 1916 1916 1916 - - Saxon Motors Co. 1916— 3-1/4% - Stutz Motor Co. 1916— $1.25 per share None - Studebaker Motor Co. (C) 1915— 5% - 1916— 10% - (P) 1912 to 1916 (inc.)— 7% None - U. S. Rubber Co. (C) 1911— 1% - 1912— 4% - 1913— 5-1/2% - 1914— 6% - 1915— 3% $69,000,000—5% ..... ..... ..... - (1-P) 1906-16 (inc.)— 8% 16,500,000—6% 1782 103-1/2 101¾ - (2-P) 1906-16 (inc.)— 6% - White Motor Co. 1916— 5-1/4% None - Willys-Overland Co. (C) 1913— 11% - 1914— 6% - 1915— 11% - 1916— 14% - (P) 1913 to 1916 (inc.)— 7% None - Rubber Goods Mfg. Co. None - - Stocks Shares Shares - Traded in Traded in - Name Outstanding 1916 1912 1909 1906 - - Chalmers Motor Co. $ 464,000 36,566 ..... ..... ..... - Chevrolet Motor Co. 23,909,000 660,550 ..... ..... ..... - Emerson Motor Co. 7,000,000 116,990 ..... ..... ..... - Falls Motor Co. 24,850 ..... ..... ..... - Grant Motor Co. 2,000,000 93,240 ..... ..... ..... - Preferred 1,000,000 ........ ..... ..... ..... - Hupp Motor Co. 5,000,000 130,130 ..... ..... ..... - Preferred 1,500,000 ........ ..... ..... ..... - Imperial Carbon Chaser Co. 1,000,000 637,850 ..... ..... ..... - Keystone Tire & Rubber Co. 1,000,000 137,200 ..... ..... ..... - Preferred 500,000 33,800 ..... ..... ..... - Mitchell Motor Co. 125,000 80,495 ..... ..... ..... - National Auto Corporation 61,865 ..... ..... ..... - Peerless Motor Co. 10,000,000 135,263 ..... ..... ..... - Pierce Arrow Motor Co. 250,000 52,300 ..... ..... ..... - Preferred 10,000,000 1,600 ..... ..... ..... - Republic Motor Truck Co. 62,500 20,870 ..... ..... ..... - Scripps Booth Co. 70,000 27,725 ..... ..... ..... - Smith Motor Truck Co. 10,000,000 39,500 ..... ..... ..... - Springfield Body Co. 1,750,000 26,481 ..... ..... ..... - Preferred 750,000 11,461 ..... ..... ..... - Standard Motor Co. 1,800,000 47,490 ..... ..... ..... - Stromberg Carburetor Co. 50,000 72,050 ..... ..... ..... - United Motors 1,195,000 1,297,355 ..... ..... ..... - Studebaker Co. ......... ......... 16,973 ..... ..... - Preferred ......... ......... 4,717 ..... ..... - U. S. Motors Co. ......... ......... 53,393 ..... ..... - Preferred ......... ......... 54,433 ..... ..... - Willys-Overland Co. ......... 2,570 13,045 ..... ..... - Preferred ......... 4,350 11,045 ..... ..... - Goodrich B. F. Co. ......... ......... 40,846 ..... ..... - Preferred ......... ......... 32,211 ..... ..... - General Motors Co. ......... ......... ..... 1,406 ..... - Consolidated - Rubber Tire Co. ......... ......... ..... ..... 2,843 - Preferred ......... ......... ..... ..... 410 - Ajax Rubber Tire Co. ......... 102,065 ..... ..... ..... - Alliance Rubber Tire Co. ......... 14,400 ..... ..... ..... - Preferred ......... 3,200 ..... ..... ..... - Electric Vehicle Co. ......... ......... ..... ..... 1,000 - Preferred ......... ......... ..... ..... 3,705 - American Motor Co. ......... 24,500 ..... ..... ..... - Pope Mfg. Co. ......... ......... ..... ..... 1,250 - 1st preferred ......... ......... ..... ..... 3,790 - 2nd preferred ......... ......... ..... ..... 5,450 - Chandler Motor Co. ......... 40,985 ..... ..... ..... - Enger Motor Car Co. ......... 7,456 ..... ..... ..... - Essex Motor Co. ......... 9,950 ..... ..... ..... - Fisk Tire Co. 8,000,000 1,695 ..... ..... ..... - Fisher Body Corporation 200,000 20,130 ..... ..... ..... - Preferred 5,000,000 3,900 ..... ..... ..... - General Motor Co. ......... 89,250 ..... ..... ..... - Preferred ......... 13,416 ..... ..... ..... - Intereon Rubber Co. ......... 76,848 ..... ..... ..... - International Motors Co. ......... 8,441 ..... ..... ..... - Preferred ......... 3,626 ..... ..... ..... - Kelly-Springfield ......... 435 ..... ..... ..... - Kelsey Wheel ......... 4,500 ..... ..... ..... - Lee Tire ......... 41,175 ..... ..... ..... - Met. Motors Co. ......... 2,825 ..... ..... ..... - Motor Products Co. 100,000 17,370 ..... ..... ..... - Perlman Rim 100,000 119,780 ..... ..... ..... - Princess Motor Co. ......... 6,362 ..... ..... ..... - Republic Motor - Truck Co. preferred ......... 300 ..... ..... ..... - Saxon Motor Car Co. ......... 102,226 ..... ..... ..... - Stutz Motor Co. ......... 200,245 ..... ..... ..... - Times Sq. Auto Sup. ......... 13,750 ..... ..... ..... - Universal Motor Co. ......... 68,450 ..... ..... ..... - White Motor Co. ......... 626,220 ..... ..... ..... - - -NEW YORK STOCK EXCHANGE. - -The rise in average price of the automobile securities traded in on the -New York Stock Exchange, as shown on the chart, is due to the general -expansion and increase of the automobile industry which was naturally -reflected in the securities. - -_The following chart shows average price of all automobile and -automobile tire stocks traded in on the New York Stock Exchange for -years 1906-9-12-16:_ - -[Illustration: Chart] - - -SECURITIES OF COMPANIES TRADED IN ON NEW YORK CURB MARKET. - -The securities of companies manufacturing automobiles, automobile -accessories and tires, which were traded in on the New York Curb -during the years 1906, 1909, 1912 and 1916 are shown in the following -tabulation. Some of these curb stocks have graduated to the big -exchange. - - 1916 1912 - Name High Low High Low - Chalmers Motor Co. 39-1/2 33 ..... ..... - Chevrolet Motor Co. 278 114 ..... ..... - Emerson Motors Co. 4-1/2 1-1/4 ..... ..... - Falls Motor Co. 13 6-1/2 ..... ..... - Grant Motor Co. 14 7 ..... ..... - Hupp Motor Co. 11-3/4 5-1/8 ..... ..... - Imperial Carbon Chaser Co. 53 12-1/2 ..... ..... - Keystone Tire & Rubber Co. 19-5/8 11 ..... ..... - Preferred 18-1/4 12 ..... ..... - Mitchell Motor Co. 73-1/2 51-1/2 ..... ..... - National Auto Corporation 44-1/2 33 ..... ..... - Peerless Motor Co. 31-1/2 18 ..... ..... - Pierce Arrow Motor Co. 65 42 ..... ..... - Preferred 109 101 ..... ..... - Republic Motor Truck Co. 74 54 ..... ..... - Scripps Booth Co. 62 35 ..... ..... - Smith Motor Truck Co. 6-1/8 4-1/2 ..... ..... - Springfield Body Co. 55-1/2 51 ..... ..... - Preferred 139 101 ..... ..... - Standard Motor Co. 10-1/2 5-7/8 ..... ..... - Stromberg Carburetor Co. 45-1/4 38 ..... ..... - United Motors Co. 94 42-3/4 ..... ..... - - 1909 1906 - High Low High Low - Chalmers Motor Co. ..... ..... ..... ..... - Chevrolet Motor Co. ..... ..... ..... ..... - Emerson Motors Co. ..... ..... ..... ..... - Falls Motor Co. ..... ..... ..... ..... - Grant Motor Co. ..... ..... ..... ..... - Hupp Motor Co. ..... ..... ..... ..... - Imperial Carbon Chaser Co. ..... ..... ..... ..... - Keystone Tire & Rubber Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - Mitchell Motor Co. ..... ..... ..... ..... - National Auto Corporation ..... ..... ..... ..... - Peerless Motor Co. ..... ..... ..... ..... - Pierce Arrow Motor Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - Republic Motor Truck Co. ..... ..... ..... ..... - Scripps Booth Co. ..... ..... ..... ..... - Smith Motor Truck Co. ..... ..... ..... ..... - Springfield Body Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - Standard Motor Co. ..... ..... ..... ..... - Stromberg Carburetor Co. ..... ..... ..... ..... - United Motors Co. ..... ..... ..... ..... - - 1916 1912 - High Low High Low - Studebaker ..... ..... 59-1/4 34 - Preferred ..... ..... 104 94 - U. S. Motors Co. ..... ..... 9 1/16 - Preferred ..... ..... 30-1/2 3/4 - Willys-Overland Co. 47-1/4 41 72 67-1/2 - Preferred 106-3/8 104-1/2 101-1/2 99 - Goodrich, B. F. Co. ..... ..... 86-1/2 70-1/2 - Preferred ..... ..... 109-1/2 106-3/4 - General Motors Co. ..... ..... ..... ..... - Rubber Tire Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - Ajax Rubber Tire Co. 73-1/4 63 ..... ..... - Alliance Rubber Tire Co. 5-3/4 5 ..... ..... - Preferred 8-3/4 8-1/4 ..... ..... - Electric Vehicle Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - American Motor Co. 65-1/2 60 ..... ..... - Pope Mfg. Co. ..... ..... ..... ..... - 1st preferred ..... ..... ..... ..... - 2nd preferred ..... ..... ..... ..... - Chandler Motors 94 79 ..... ..... - Enger Motor Car Co. 8 7-3/8 ..... ..... - - 1909 1906 - High Low High Low - Studebaker ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - U. S. Motors Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - Willys-Overland Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - Goodrich, B. F. Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - General Motors Co. 162-1/4 155 ..... ..... - Rubber Tire Co. 4-1/2 3 5-5/8 2-1/8 - Preferred 23 18 16 12 - Ajax Rubber Tire Co. ..... ..... ..... ..... - Alliance Rubber Tire Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - Electric Vehicle Co. ..... 18 13 ..... - Preferred ..... 23 15 ..... - American Motor Co. ..... ..... ..... ..... - Pope Mfg. Co. ..... 6 4 ..... - 1st preferred ..... 74 69 ..... - 2nd preferred ..... 21 14-3/4..... - Chandler Motors ..... ..... ..... ..... - Enger Motor Car Co. ..... ..... ..... ..... - - - 1916 1912 - High Low High Low - Essex Motor Co. 5-1/8 3-7/8 ..... ..... - Fisk Tire Co. 168 115 ..... ..... - Fisher Body Corporation 42-1/2 35 ..... ..... - Preferred 95-1/2 93 ..... ..... - General Motors Co. 175 117 ..... ..... - Preferred 100 88 ..... ..... - Intereon Rubber Co. 19 10 ..... ..... - Inter. Motors Co. 25 3 ..... ..... - Preferred 45 17 ..... ..... - Kelly-Springfield 299 280 ..... ..... - Kelsey Wheel 61 53 ..... ..... - Lee Tire 66 44 ..... ..... - Met. Motors 3-3/4 2-3/4 ..... ..... - Motor Products 87 56 ..... ..... - Perlman Rim 162-1/2 111 ..... ..... - Princess Motor Co. 1-1/8 1 ..... ..... - Republic Motor Truck Co. pfd. 98 98 ..... ..... - Saxon Motor Oar Co. 87 60 ..... ..... - Stutz Motor Co. 78 53-3/8 ..... ..... - Times Sq. Auto Sup. 41 28-1/2 ..... ..... - Universal Motor 9-1/8 4 ..... ..... - White Motor Co. 60 46 ..... ..... - - 1909 1906 - High Low High Low - Essex Motor Co. ..... ..... ..... ..... - Fisk Tire Co. ..... ..... ..... ..... - Fisher Body Corporation ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - General Motors Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - Intereon Rubber Co. ..... ..... ..... ..... - Inter. Motors Co. ..... ..... ..... ..... - Preferred ..... ..... ..... ..... - Kelly-Springfield ..... ..... ..... ..... - Kelsey Wheel ..... ..... ..... ..... - Lee Tire ..... ..... ..... ..... - Met. Motors ..... ..... ..... ..... - Motor Products ..... ..... ..... ..... - Perlman Rim ..... ..... ..... ..... - Princess Motor Co. ..... ..... ..... ..... - Republic Motor Truck Co. pfd...... ..... ..... ..... - Saxon Motor Oar Co. ..... ..... ..... ..... - Stutz Motor Co. ..... ..... ..... ..... - Times Sq. Auto Sup. ..... ..... ..... ..... - Universal Motor ..... ..... ..... ..... - White Motor Co. ..... ..... ..... ..... - - Par Stock —Number of Shares Traded in— - Name Value Outstanding 1916 1912 1909 1906 - Ajax Rubber Co. $ 50 $10,000,000 107,950 ....... ....... ....... - Chandler Motor Co. 100 7,000,000 291,640 ....... ....... ....... - General Motors Co. 100 (C) 14,985,200 43,215 55,436 ....... ....... - (P) 16,506,783 129,933 48,869 ....... ....... - B. F. Goodrich Co. 100 (C) 60,000,000 604,055 65,169 ....... ....... - (P) 27,300,000 25,444 15,525 ....... ....... - Kelly-Springfield - Tire Co. 25 (C) 4,360,100 524,329 ....... ....... ....... - (P) 3,593,000 5,335 ....... ....... ....... - 100 (2-P) 547,100 ....... ....... ....... ....... - (shares) - Lee Tire - & Rubber Co. ... 100,000 477,025 - Maxwell Motors 100 (C) 12,778,058 2,009,100 - 100 (P) 13,764,121 20,585 - 100 (2-P) 10,127,468 300,935 - Saxon Motors Co. 100 6,000,000 17,920 - (shares) - Stutz Motor Co. ... 73,301 116,900 ....... ....... ....... - Studebaker Motor Co. 100 (C) 30,000,000 3,045,440 50,652 ....... ....... - (P) 10,965,000 11,411 109,020 ....... ....... - U. S. Rubber Co. 100 (C) 36,000,000 1,165,881 661,765 517,411 598,628 - 100 (P) 59,692,100 69,147 78,734 199,512 123,611 - 100 (2-P) 458,400 ....... 35,695 61,790 59,875 - White Motor Co. 50 16,000,000 89,300 ....... ....... ....... - Willys-Overland Co. 25 (C) 38,655,710 1,852,745 ....... ....... ....... - (P) 15,000,000 9,530 ....... ....... ....... - Rubber Goods - Mfg. Co. 100 .......... (C) 253 150 500 - 100 .......... (P) ....... ....... 625 - - -CURB MARKET. - -Some of the big fluctuations shown in the charts are accounted for by -the abnormal irregularities of one or two giants of the industry, whose -volume of trading produced a marked effect upon the totals traded in, -and their average prices. Instances like United States Motors Company -and B. F. Goodrich Company may be cited as examples. The accessory -shares have seen a general rise since first traded in, in 1912. - -_The following chart shows average price of automobile, automobile tire -and automobile accessory manufacturing stocks traded in on the New York -Curb for 1906-9-12-16:_ - -[Illustration: Chart] - -SECURITIES ON VARIOUS EXCHANGES IN OTHER CITIES AND DATA FOR 1916. - -Securities traded in on various stock exchanges of other cities show -very little activity or regularity. - -Below is shown the trading in the great automobile center of the world. - - DETROIT. 1916 - High Low - Auto Body Co. 48-1/2 32 - Chalmers Motor 255 90 - Chevrolet 277 171-1/8 - Continental Motors 42-1/8 7-1/2 - Ford Motor Co. of Canada 415 275 - General Motors 800 418 - Preferred 127 112-1/2 - Maxwell Motors 95-1/8 57-5/8 - Packard Motor 260 160 - Preferred 104-1/2 100-1/4 - Paige-Detroit 57-1/8 32 - Reo Motor 47-1/2 32-1/4 - Reo Truck 45-1/4 23-3/8 - Studebaker 161-1/8 120-7/8 - -Cleveland shows greatest activity in the tire stock on account of its -proximity to the great rubber center of Akron, Ohio. - - 1916 - High Low - Firestone Tire & Rubber Co. 1,700 740 - Goodrich Co. 78-1/2 60-3/8 - Goodyear Tire & Rubber Co. 402 198 - Portage Rubber Co. 183-1/2 62-1/2 - Republic Rubber Co. 145 128-1/2 - Swinehart Tire & Rubber Co. 110 79 - White Motor Co. 60 47-1/4 - - -PRINCIPAL COMPANIES WHOSE SECURITIES ARE NOT GENERALLY TRADED IN. - -Until the past two or three years, motor and motor accessory stocks -were traded in but little on the open market. Even today, when these -securities are traded in much more generally, there is a large number -of companies whose stocks are very closely held and it requires some -unusual occurrence to loosen them for trading on the open market. - -A notable example of this is the Ford Motor Company. The Ford car -is widely distributed, yet the two million dollar capital stock is -almost entirely held by seven men. Another case is the H. H. Franklin -Manufacturing Company, of Syracuse. This company has $1,800,000 -outstanding capital stock which is held largely by Mr. H. H. Franklin. - -Further, out of a total of 81 companies reported upon (including the -two above mentioned) at least 16, or practically 20 per cent, fall into -the “closely held” class. Among these companies are the following: - - Apperson Brothers - Consolidated Car Co. - Dodge Brothers - Federal Motor Truck - Ford Motor Co. - Ford Motor Co. of Canada - H. H. Franklin Manufacturing Co. - Gramm Motor Truck Co. - Haynes Auto Co. - Kissel Motor Car Co. - Mitchell Lewis Motor Co. - Mutual Motors Co. - Pierce-Arrow Motor Car Co. - Republic Motor Truck Co. - Stearns Co. - Winton Co. - - -SOME LEADING EXAMPLES OF PRICES AND TERMS AND PROMOTION PLANS UPON -WHICH SECURITIES WERE PUT OUT. - -Perhaps one of the most notable examples of plans for flotation of -securities was the 8 per cent cumulative convertible preferred stock -of the Pierce-Arrow Motor Car Company, offered by prominent brokers in -1916. This stock must be redeemed at 125 up to the amount of cash paid -on common stock in excess of $5.00 a share in any year. The preferred -is convertible into common stock, share for share, at the holder’s -option (preferred stock $10,000,000) earnings five times preferred -dividends; the common shares are without par value (common 250,000 -shares). - -Among other issues by banking houses of New York and other cities may -be mentioned in 1912, General Motors Company’s 6 per cent first lien -sinking fund gold notes dated 1910, due 1915, $200,000,000 (since paid -off); 1913 Chalmers Motor Company of Michigan, 7 per cent cumulative -preferred stock (no bonds) $1,500,000, redeemable at $115 a share, -earnings over 9-1/2 times preferred interest; company taken over by new -company in 1916. January, 1916, Willys-Overland Company convertible 7 -per cent cumulative preferred stock, redeemable at $110, interest 6-1/2 -times earnings; November, 1916, Chalmers Motor Corporation of New York, -shares at no par value, at $35 a share (264,000 shares), book value $29 -a share, earnings, $5.40 a share; National Motor Car & Vehicle Company -common shares at no par value (80,000 shares), no bonds, no preferred -stock. Offered at $42.50 a share, earnings old company equal to 12-1/2 -per cent on new stock. - -Most motor companies started with a small capitalization and business, -and to provide additional working capital, as their business expanded, -issued preferred or common stock. - -Most of the better grade issues were for preferred stock, usually -carrying with it a proviso that it could be retired at will at a -stated price, some as high as $125. - -Very few companies in the motor field have any bonded debt. Some -companies which incurred such indebtedness in the past have paid it -off; for example, the General Motors Company, and the Pierce-Arrow -Motor Car Company. - -The issues of securities by established motor companies have, as a -rule, shown large liquid assets, and earning capacity record, and have -been of the same general class. - -In the automobile accessory line many flotations were put out in 1916 -and a few in 1917, among which were: - - (a) Edmunds & Jones Corporation. - (b) Perlman Rim Corporation. - (c) Motor Products Corporation. - (d) Fischer Body Corporation. - (e) United Alloy Steel Corporation. - (f) Transue & Williams Steel Forging Co. - -(a) Edmunds & Jones Corporation (manufacturers of automobile lamps). -This corporation issued $1,000,000 worth of preferred 7 per cent -cumulative stock (no bonds), redeemable at $120, earning over six times -preferred dividends. - -(b) A somewhat unusual plan was the Perlman Rim Corporation -(manufacturers of demountable automobile rims) which issued 100,000 -shares of stock of no par value, divided into two classes as follows: - - Class “A,” having voting power.... 3,000 shares - Common, no par value or voting power 97,000 shares - -The estimated earnings of this company for 1917 are $3,000,000. -In addition the company has been allowed claims for infringements -sustained by the courts, amounting to $2,000,000. - -(c) The Motor Products Corporation issued 100,000 shares, divided as -follows: - - Class “A,” no par value, non voting .. 95,000 shares - Class “B,” no par value, voting ....... 5,000 shares - -This corporation has taken over five companies manufacturing -miscellaneous products, such as automobile radiators, windshields, etc. -Their earnings for 1916 were $788,000. - -(d) A more usual form is the $5,000,000 issue of 7 per cent cumulative -preferred stock and 200,000 shares common stock, of the Fischer Body -Corporation. It is not contemplated to pay a dividend on the common -until the company has $1,000,000 surplus earnings. Its net profits for -the year 1916 were $1,000,000 on a total volume of business amounting -to $20,000,000. The preferred stock is redeemable at $120. - -(e) The United Alloy Steel Corporation issued 525,000 shares without -par value, of which 500,000 were used to acquire United Steel Company, -manufacturing alloy steel parts for the automobile trade. - -For expansion purposes to provide more adequate equipment to supply the -increasing demand for its product, $4,000,000 additional cash capital -was to be provided. The estimated net earnings for 1916 were about $7 a -share on 500,000 shares. - -(f) Transue & Williams Steel Forging Company issued 110,000 shares -without par value. One hundred thousand shares and $750,000 cash was to -be paid for company subscriptions at $45.50 a share. The net earnings -for 7 months of 1916 were $648,026 or $12 a share. - - -SECURITY ISSUES OF TIRE COMPANIES. - -Among the tire company stock issues a few leading examples may be cited. - -The Firestone Tire & Rubber Company issued $5,000,000 of 6 per cent -cumulative preferred stock. A sinking fund is provided to redeem this -stock at $110, beginning 1921. There are no bonds, and the company is -required to maintain at all times total net assets equal to 250 per -cent and net quick assets equal to 150 per cent of the aggregate par -value of this stock outstanding. - -The earnings for 1916 were $4,482,554.52, or over seven times the -dividend requirements on the total issue of preferred stock. This -stock was sold at $107. - -Another representative issue was that of the Fisk Rubber Company, -which consisted of $5,000,000 of cumulative 7 per cent first preferred -convertible stock. This is redeemable at $110 upon 60 days’ notice. - -The earnings for the year ending August 31, 1916, were $1,992,043, or -three times the dividend requirements. There are no bonds or other form -of funded debt. - -One of the few instances of an issue of bonds by a tire company is the -issue of $60,000,000 of 5 per cent gold bonds by the United States -Rubber Company. Of course, tires are only a part of this company’s -output. The proceeds of the sale of these bonds are to be used to -retire certain obligations of subsidiaries, to provide additional -working capital, etc. - - -NEWER ENTRANTS INTO THE SECURITY MARKET. - -While in the foregoing chapter are noted some of the securities of -representative manufacturers attracting the most pronounced attention, -there are several others on the border line, or that have not as yet -“arrived,” and possibly may never do so. - -There has, therefore, been so little activity in these securities, -that examples of their flotations are negligible in this report. - -Those most in the public eye are perhaps: - - The Harroun Motors Corporation - The Emerson Motors Company, Inc. - The Ford Tractor Company, Inc., etc. etc. - - -SOME LEADING EXAMPLES OF APPRECIATION OR DEPRECIATION IN VALUE OF SUCH -STOCKS SINCE THEY WERE PUT OUT. - -An example of depreciation in automobile stocks of an exaggerated -type was that of the United States Motor Company, a combination of -the Maxwell-Briscoe, Columbia, Stoddard-Dayton, Brush, and Sampson -Companies. With an issue of about $35,000,000 stock, New York Curb -prices in 1912 for the common ranged from 9 down to 1/16 and for the -preferred from 30-1/2 down to 3/4. - -The properties of this company have since been taken over by the -Maxwell Motors Companys, which issued the following securities: - - $13,000,000 1st preferred - 11,000,000 2nd preferred - 13,000,000 common - -The prices of these stocks have ranged as follows: - - 1914 1917 - Common 3 47-1/2 - 1st preferred 22 64 - 2nd preferred 7 32 - -This instance gives an extreme example of the fluctuations possible in -motor stocks in one year, in 1912 the market values reaching as high as -7,200 per cent of the value indicated at low. The re-organized company -in less than five years showed a market value of possibly 38,000 per -cent of the market value of the old company at its low, and 500 per -cent of its value at its high. - -These great increases in volume and values are what have made so -many motor millionaires, and, conversely, have swept away some large -fortunes. - -Another instance is the stock of the Studebaker Corporation, which -sold as low as 20 in 1914 and which now brings 102. Also the -Kelly-Springfield Tire Company’s stock rose from 50 to 299, due to -their great increase in business and consequent large earnings. - - -GENERAL COMPARISON. - -The attached chart, showing the average high and low prices of -representative groups of securities during 1916, may be used as a -comparison of the average selling price of the motor group with that of -railroads, industrials, and mining. - -It will be seen that the greatest fluctuations occur in the mining, -steel and iron stocks of the standard list, and that a similar -fluctuation occurs in the tire and automobile stocks of the motor group. - -This comparison would tend to show that the tire and motor stocks are -still in the class which fluctuates considerably and therefore, except -in special cases, are more or less speculative. In this light these -figures and comparisons are very interesting and may be carefully -considered from the investment standpoint. - -_The following chart compares the average high and low prices of -representative groups of stocks during 1916 with similar groups in the -automobile field:_ - -[Illustration: Chart] - - -PRESENT TREND OF VALUES. - -After the great rise in prices, the trend of values of the securities -of motor accessory and tire companies, during the first quarter of -1917, was generally downward. During the past two years a large number -of such stocks have been put on the market (see table 1 and 3) and a -great deal of speculation has taken place, with the result that the -market seems overloaded at the high prices at which the public has -bought these stocks. At the time of the market reaction at the end of -1916, under various influences, motor stocks suffered considerable -losses. - -A few prominent instances may be cited. Studebaker, which sold as high -as 67 in 1916, sold down to 102. Chevrolet Motor, whose high mark in -1916 was 278, sold down to 120. United Motors, which sold at 95 in -1916, sold down to 42-3/4. Similar conditions obtain through most of -the list. - -Among tire companies a few instances will show the same general -downward tendency. - -Lee Tire & Rubber Company’s stock, which sold for 50-1/4 in 1915, is -now selling around 23. Goodrich stock, which brought around 80 in 1915 -and 1916, ranges between 51 and 58. The Kelly-Springfield Tire Company, -which sold as high as 85-1/4 in 1916, now sells around 60. - -During the year 1916, the range of high and of low of 25 leading -railroad stocks traded in on the New York Exchange was between 76 and -85. Twenty-five leading industrials for the same period ranged between -90 and 113. The range of all the motor stocks traded in during this -time was from 119 to 231; while that of the tire companies was from 45 -to 76. - -On the Curb, motor stocks in 1916 ranged from 39-3/4 to 57-3/4; tire -stocks from 67 to 79; and accessories from 58 to 73, all of these -figures representing average high and low of each class. - - -POSSIBLE FUTURE TREND IN AUTOMOBILE INDUSTRY AS A BASIS FOR THE FUTURE -OUTLOOK FOR 1917 ON ITS SECURITIES. - -As was stated in the opening introduction, economic conditions are -perhaps the greatest factor to be considered in constructing any -forecast for the operation of such an industry as that of the motor, -motor accessory and tire group. - -These economic conditions have mainly to do with: - - (a) The increase of population, its effect reflected in increased - registration, and automobile production. - - (b) The uneven distribution of automobiles in the United States. - -(a) Following is a chart which shows graphically the comparison between -the growth of population, increased registration, and increased -automobile production since 1911. - -_The following chart shows the rate of growth of automobile production -and registration compared with increase in population:_ - -[Illustration: Chart] - -This would indicate that, while the population is gaining slowly and -consistently, the production of automobiles has taken a decided jump, -and a natural inference is that, even with so remarkable an industry -as the motor group, it is beginning to prove food for speculation -as to whether or not manufacturers, at the present increasing ratio -of production and distribution, will bring a more or less complete -saturation of the public, able to buy and support pleasure automobiles. - -Many conservative judges have figured that this may not come for some -years, possible five or more. It may be that new conditions will arise -to put that period further ahead, or indefinitely postpone it. - -(b) In this connection, the following chart is of interest. This shows -the ratio of voting men to each registered automobile in the United -States by states. - -_The following chart shows the ratio by states of men over 21 to each -registered automobile:_ - -[Illustration: Chart] - -Attention is invited to the diverging range of distribution. -Territorial and community economics account for this very largely. For -example, an analysis of three sections will show a decided variation, -say for New York (with one automobile for 15 voting men); Arkansas -(with one automobile for every 54 voters); and Alabama (with one -automobile for every 43 voters). - -The state of New York is very largely industrial, and one might -commonly infer that, due to the great wealth represented in this state, -the ratio should be much smaller. States like Arkansas, Kansas and -Iowa are distinctively rural sections—where the population is not so -clustered as in cities like New York, and automobile transportation -is more utilitarian than a luxury or pastime. For this reason it is -estimated that practically every voter, almost, in Kansas and Iowa is a -possible prospect in figuring future consumption. - -Still another diversion notably exists in the ratio shown for the -Southern states, and this is readily explained by reason of a paucity -of buying power, since the majority population is negro. - -To indicate how the various types of automobiles have been distributed -in three different states, the following chart is included in this -report. - -_The following chart shows the distribution of leading motor cars in -different states:_ - -[Illustration: Chart] - -The following factors may be instrumental in the automobile industry in -preventing the reaching of an absolute saturation point: - - (1) Increase in earning or buying power of those now unable to support - an automobile; - - (2) A very low average price; - - (3) Production finally being held at the point where it keeps pace - with the increase in population; - - (4) Increase in the utilitarian need of the automobile. - -In making up a quota for the possible consumption in the automobile -industry, the following chart may be considered as a conservative basis -to work on. - -_The following chart shows the estimated automobile market for 1917:_ - -[Illustration: Chart] - -There being, therefore so many elements entering into the question of -influence upon this group of securities, it is rather venturesome to -presume any prediction for their future, for fear such prediction may -prove unfounded, as have many former guesses on their probable rise and -fall. - -The immediate outlook for 1917 is at present somewhat baffling, aside -from the economic tendencies, charted in this chapter, but there may -be a change for improvement at any time in the motor car industry, -especially if our government should place large orders for cars and -supplies in the event of war, or the foreign trade should take on large -quantities for the remainder of the year. - -It must be remembered that the supply of parts for cars is now, and -will be more and more, an extensive business of the motor car industry. - -One prominent New York newspaper which censors very carefully its -advertising is very cautious in handling offerings on motor stocks. - -It might be safe to assume that motor stocks in well managed companies -making popular cars will be as secure an investment for reasonable -earnings on products as other industrials for some years to come and -possibly indefinitely. - -The future of automobile accessories is possibly not subject to -fluctuations in the same degree, nor as apt to reach the saturation -point as might be the development in the automobile industry, for -the reason that with the increase in the number of cars in use, the -purchase of many accessories will be made by car owners, even though -the manufacturers should not continue to buy an increasing, or even -equal, volume. - -It is natural to expect that the earnings on and the price of -automobile accessory stocks should therefore remain firm, if conditions -of trade or competition do not unduly affect them. - -The future of the tire industry and stocks seems reasonably secure, as -unless some satisfactory substitutes for rubber tires are discovered, -apparently an increasing number of tires for replacements, if not new -cars, should be demanded each year. - -The present earnings of the tire companies are very large and should -continue favorable. It must be remembered that the cost of material and -labor are as important considerations to this class of manufacturers as -to all industrials, and that their undue rise in cost might affect the -industry more or less temporarily. But as they have come to be classed -as necessities, the prices would naturally adjust themselves to the -cost of manufacture. - -With all popular cars sold far in excess of their capacity, barring -the interference or lack of transportation, labor friction, or -other unexpected or disturbing elements, it is safe to assume that -1917 should be a record year in the motor, motor accessory and tire -industries, and that their earnings should be reflected in the -intrinsic and probably the market values of their securities. - - - - -CHAPTER VII. - -PASSENGER AUTOMOBILES MANUFACTURED IN THE UNITED STATES. - - -The following is, as near as possible, a complete list of the passenger -automobiles manufactured in the United States, with the number of -cylinders and the retail price of each. New cars are being put on the -market so rapidly that it is difficult to keep track of them. - -The prices quoted may not be exact in every case, as manufacturers are -putting up prices quite generally as this volume goes to press. They -are the prices at which the cars sold for a long time, and they are -given without the intention to be exact to the dollar, but merely as -relative figures of retail cost. - -An automobile quoted at $1,195 may have undergone a price raise to -$1,350, but the former price quotation fixes the car’s retail price -status as compared with a car that sells for $360 or $550. - -One hundred manufacturers are said to have raised their prices, -and forty made increases from $10 to $700 on each car, the average -advance being $146. Freight conditions and the uncertainties of the -international situation were advanced as reasons for the increase. - -Practically all the American manufacturers of tires also raised prices -a second time within a year, the range of the last increase being from -6-1/2 to 12 per cent. Where price is not given, it was not available. - - Cylinders Price - - “Abbott-Detroit” Abbott Corporation, - Cleveland, O. 6 $1,195 to $1,820 - “Allen” Allen Motor Car Co., - Fostoria, O. 4 850 to 1,195 - “Alter” Alter Motor Car Co., - Grand Haven, Mich. 4-6 675 to 850 - “American” American Motors - Corporation, New York, - N. Y. 6 1,285 and 845 - “Ams-Sterling” Sterling Automobile - Manufacturing Co., - New York, N. Y. 4 825 to 845 - “Anderson” Anderson Motor Co., - Rock Hill, S. C. 6 1,250 and 1,275 - “Apperson” Apperson Bros. Auto Co., - Kokomo, Ind. 6-8 1,690 to 2,000 - “Arbenz” Arbenz Motor Car Co., - Chillicothe, O. - “Auburn” Auburn Automobile Co., - Auburn, Ind. 6 1,145 to 1,785 - “Austin” Austin Automobile Co., - Grand Rapids, Mich. 6-12 3,400 to 5,250 - “Beardsley” Beardsley Electric Co., - Los Angeles, Cal. - (Electric) .... 1,285 to 3,000 - “Bell” Bell Motor Car Co., - York, Pa. 4 875 - “Ben-Hur” Ben Hur Motor Co., - Cleveland, O. 6 1,875 to 2,750 - “Biddle” Biddle Motor Car Co., - Philadelphia, Pa. 4 2,285 to 3,900 - “Bimel” Bimel Automobile Co., - Sidney, O. 4 550 to 995 - “Bour-Davis” Bour-Davis Motor Car Co., - Detroit, Mich. 6 1,250 to 1,500 - “Brewster” Brewster & Co., - New York, N. Y. 4 6,500 to 7,900 - “Briscoe” Briscoe Motor Corporation, - Jackson, Mich. 4-8 685 to 985 - “Brunswick” Brunswick Motor Car Co., - New York, N. Y. - “Buick” Buick Motor Co., - Flint, Mich. 4-6 660 to 1,835 - “Bush” Bush Motor Co., - Chicago, Ill. 4 725 - “Cadillac” Cadillac Motor Car Co., - Detroit, Mich. 8 2,240 to 3,910 - “Cameron” Cameron Car Co., - Norwalk, Conn. 6 1,250 - “Case” J. I. Case Threshing - Machine Co., - Racine, Wis. 4 1,190 - “C-B” Carter Brothers Co., - Hyattsville, Md. 6-8 700 to 1,000 - “Chalmers” Chalmers Motor Car Co., - Detroit, Mich. 6 1,090 to 2,550 - “Chandler” Chandler Motor Car Co., - Cleveland, O. 6 1,395 to 2,695 - “Chevrolet” Chevrolet Motor Co., - Flint, Mich. 4-8 490 to 1,285 - “Classic” Classic Motor Co., - Chicago, Ill. - “Coey Flyer” Coey Motor Co., - Chicago, Ill. 4 695 - “Cole 8” Cole Motor Car Co., - Indianapolis, Ind. 8 1,695 to 2,295 - “Columbia” Columbia Motor Co., - Detroit, Mich. 6 on application - “Crawford” Crawford Automobile Co., - Hagerstown, Md. 6 1,750 to 2,250 - “Crockett” The J. B. Co., - New York City - (exported only) - “Crow Elkhart” Crow Elkhart Motor Car Co., - Elkhart, Ind. 4 795 and 845 - “Crowther-Duryea” Crowther Motors - Corporation, - Rochester, N. Y. 4 650 - “Cunningham” James Cunningham Son & Co., - Rochester, N. Y. 8 3,750 to 7,500 - “Daniels” Daniels Motor Car Co., - Reading, Pa. 8 2,600 to 4,200 - “Davis” George W. Davis Motor - Car Co., Richmond, Ind. 6 1,195 to 1,795 - “Detroit” Anderson Electric Car Co., - Detroit, Mich. - (Electric) ... 1,875 to 2,475 - “Detroiter” Detroiter Motor Car Co., - Detroit, Mich. 6 1,195 to 1,495 - “Dey” Dey Electric Corporation, - New York, N. Y. - (Electric) - “Dispatch” Dispatch Motor Car Co., - Minneapolis, Minn. 4 1,135 to 1,400 - “Dixie” Dixie Manufacturing Co., - Vincennes, Ind. - “Dixie Flyer” Dixie Motor Car Co., - Louisville, Ky. 4 840 to 1,275 - “Doble” General Engineering Co., - Detroit, Mich. - (Steam) 4-7 1,800 - “Dodge” Dodge Bros., - Detroit, Mich. 4 785 to 1,185 - “Dorris” Dorris Motor Car Co., - St. Louis, Mo. 6 2,475 - “Dort” Dort Motor Car Co., - Flint, Mich. 4 695 to 1,065 - “Downing” Downing Motor Car Co., - Detroit, Mich. - “Drexel” Drexel Motor Car - Corporation, - Chicago, Ill. 4 985 to 1,650 - “Drummond” Drummond Motor Co., - Omaha, Neb. 8 1,600 - “Dunn” Dunn Motor Works, - Ogdensburg, N. Y. 4 295 - “Duryea Gem” Duryea Motors, Inc., - Philadelphia, Pa. - (3 wheels) 2 250 - “Eagle Rotary” Eagle-Macomber Motor - Car Co., Sandusky, O. 5 700 - “Economy” Economy Motor Co., - Tiffin, O. 4-8 985 to 1,350 - “Elcar” Elkhart Carriage & - Motor Car Co., - Elkhart, Ind. 4 845 - “Elgin” Elgin Motor Car Co., - Chicago, Ill. 6 985 - “Emerson” Emerson Motors Co., - New York, N. Y. 4 470 - “Empire” Empire Automobile Co., - Indianapolis, Ind. 4-6 985 to 1,095 - “Enger” Enger Motor Car Co., - Cincinnati, O. 12 1,295 - “Erie” Erie Motor Car Co., - Painesville, O. 4 795 - “Fageol” Fageol Motors Co., - Oakland, Cal. - (Aviation motor) 6 9,500 to 12,500 - “F. I. A. T.” Fiat, - Poughkeepsie, N. Y. 5-7 4,850 to 6,300 - “Ford” Ford Motor Co., - Detroit, Mich. 4 345 to 645 - “Ford” Ford Motor Co. - of Canada, Ltd., - Ford, Ont. 4 345 to 645 - “Franklin” Franklin Automobile Co., - Syracuse, N. Y. 6 1,800 to 3,000 - “Fritchie” Fritchie Electric Co., - Denver, Colo. - (Electric) .... 2,400 to 3,200 - “Frontenac” Frontenac Motor Co., - Detroit, Mich. (Racing) 4 8,000 to 10,000 - “F. B. P.” Porter, Finley - Robertson Co., - Port Jefferson, N. Y. 4 6,000 - “Glide” Bartholomew Company, - Peoria, Ill. 6 1,195 to 1,395 - “Grant” Grant Motor Car Corporation, - Cleveland, O. 6 875 to 1,100 - “Hackett” Hackett Motor Car Co., - Jackson, Mich. 4 888 - “Hal Twelve” Hal Motor Car Co., - Cleveland, O. 12 2,600 to 5,000 - “Halladay” Barley Motor Car Co., - Streator, Ill. 6 1,185 to 1,650 - “Harroun” Harroun Motors Corporation, - Detroit, Mich. 4 595 - “Harvard” Harvard Pioneer Motor Car - Corporation, - Troy, N. Y. 4 750 - “Hatfield” Cortland Cart & - Carriage Co., - Sidney, N. Y. 4 875 - “Haynes” Haynes Automobile Co., - Kokomo, Ind. 6-12 1,485 to 2,750 - “Hewitt” Hewitt Motor Co., - New York, N. Y. - “Hollier” Lewis Spring & Axle Co., - Jackson, Mich. 6-8 895 to 1,185 - “Homer- - Laughlin” Homer-Laughlin Engineers’ - Corporation, - Los Angeles, Cal. 8 1,050 - “Howard” The A. Howard Co., - Galion, O. - “Hudson” Hudson Motor Car Co., - Detroit, Mich. 6 1,650 to 3,025 - “Hupmobile” Hupp Motor Car Corporation, - Detroit, Mich. 4 1,185 to 1,735 - “Hupp-Yeats” Hupp-Yeats - Electric Car Co., - Detroit, Mich. - (Electric) .... 1,500 to 1,750 - “Interstate” Interstate Motor Co., - Muncie, Ind. 4 850 to 1,250 - “Jackson” Jackson Automobile Co., - Jackson, Mich. 8 1,295 to 1,395 - “Jeffery” Nash Motors Co., - Kenosha, Wis. 4-6 1,095 to 1,630 - “Jones” Jones Motor Car Co., - Wichita, Kas. 6 1,475 - “Jordan” Jordan Motor Car Co., - Cleveland, O. 6 1,650 to 3,000 - “Kent” Kent Motors Corporation, - Newark, N. J. 4 985 - “King” King Motor Car Co., - Detroit, Mich. 8 1,350 to 1,900 - “Kissel Kar” Kissel Motor Car Co., - Hartford, Wis. 6 1,195 to 2,100 - “Kline Kar” Kline Car Corporation, - Richmond, Va. 6 1,175 to 1,195 - “Lambert” Buckeye Manufacturing Co., - Anderson, Ind. 4-6 685 to 985 - “Laurel” Laurel Motor Car Co., - Richmond, Ind. 4 850 to 895 - “Lenox” Lenox Motor Car Co., - Boston, Mass. 6 on application - “Leslie” Leslie Motor Car Co., - Detroit, Mich. (Kerosene) - “Lexington” Lexington-Howard Co., - Connersville, Ind. 6 1,185 to 2,875 - “Liberty” Liberty Motor Car Co., - Detroit, Mich. 6 1,095 to 2,350 - “Locomobile” Locomobile Co. of America, - Bridgeport, Conn. 6 4,600 to 6,800 - “Lozier” Lozier Motor Co., - Detroit, Mich. 4-6 1,695 to 4,650 - “Luverne” Luverne Automobile Co., - Luverne, Minn. 6 1,500 - “Lyons-Knight” Lyons-Atlas Co., - Indianapolis, Ind. - “Macon” All Steel Motor Car Co., - Macon, Mo. 4 875 to 975 - “Madison” Madison Motors Co., - Anderson, Ind. 6 1,050 to 1,150 - “Maibohm” Maibohm Motors Co., - Racine, Wis. 4 795 - “Majestic” Majestic Motor Co., - New York, N. Y. .... on application - “Marion Handley” Mutual Motors Co., - Jackson, Mich. 6 1,275 to 1,575 - “Marmon” Nordyke & Marmon Co., - Indianapolis, Ind. 6 3,050 to 5,800 - “Maxwell” Maxwell Motor Co., - Detroit, Mich. 4 620 to 985 - “McFarlan” McFarlan Motor Co., - Connersville, Ind. 6 3,500 to 5,300 - “Mercer” Mercer Automobile Co., - Trenton, N. J. 4 3,250 to 5,000 - “Metz” Metz Company, - Waltham, Mass. 4 600 - “Milburn” Milburn Wagon Co., - Toledo, O. (Electric) .... 1,285 to 1,995 - “Mitchell” Mitchell Motors Co., - Racine, Wis. 6 1,150 to 2,785 - “Mohawk” Mohawk Motor Corporation, - New Orleans, La. 4-6 985 to 1,150 - “Moline-Knight” Moline Automobile Co., - East Moline, Ill. 4 1,450 to 2,400 - “Monarch” Monarch Motor Car Co., - Detroit, Mich. 8 1,500 - “Monitor” Monitor Motor Car Co., - Columbus, O. 4-6 895 to 1,095 - “Monroe” Monroe Motor Co., - Pontiac, Mich. 4 565 and 985 - “Moon” Moon Motor Car Co., - St. Louis, Mo. 6 1,295 to 2,350 - “Moore” Moore Motor Co., - Minneapolis, Minn. 4 550 - “Morse” Morse Cyclecar Co., - Pittsburgh, Pa. 2 300 and 350 - “Murray” Murray Motor Car Co., - Pittsburgh, Pa. 8 2,000 to 2,500 - “Napoleon” Napoleon Auto - Manufacturing Co., - Napoleon, Ohio 4 735 to 845 - “National” National Motor Car - & Vehicle Corporation 6-12 1,750 to 2,800 - “New Era” New Era Engineering Co., - Joliet, Ill. 4 685 - “Norwalk” Norwalk Motor Car Co., - Martinsburg, W. Va. - “Ogren Six” Ogren Motor Works, Inc., - Chicago, Ill. 6 2,500 - “Oakland” Oakland Motor Car Co., - Pontiac, Mich. 6-8 875 to 1,585 - “Ohio” Ohio Electric Car Co., - Toledo, O. (Electric) .... 2,400 to 3,250 - “Oldsmobile” Olds Motor Works, - Lansing, Mich. 8 1,295 to 1,850 - “Olympian” Olympian Motors Co., - Pontiac, Mich. 4 845 - “Overland” Willys-Overland Co., - Toledo, O. 4-6 665 to 1,585 - “Owen Magnetic” Baker B. & L. Co., - Cleveland, O. 6 3,300 to 5,200 - “Packard” Packard Motor Car Co., - Detroit, Mich. 12 3,050 to 5,150 - “Paige” Paige-Detroit Motor - Car Co., - Detroit, Mich. 6 1,175 to 2,750 - “Partin-Palmer” Commonwealth Motors Co., - Chicago, Ill. 4 495 to 695 - “Paterson” W. A. Paterson Co., - Flint, Mich. 6 1,095 to 1,125 - “Path-finder” Pathfinder Co., - Indianapolis, Ind. 12 3,250 - “Peerless” Peerless Motor Car Co., - Cleveland, O. 8 1,890 to 3,260 - “Pennsy” Pennsy Motors Co., - Pittsburgh, Pa. 4 855 - “Phianna” Phianna Motors Co., - Newark, N. J. 4 5,000 to 6,000 - “Pierce-Arrow” Pierce-Arrow Motor Car Co., - Buffalo, N. Y. 6 4,600 to 7,600 - “Pilliod” Pilliod Motor Co., - Toledo, O. 4 1,485 - “Pilot” Pilot Motor Car Co., - Richmond, Ind. 6 1,150 - “Premier” Premier Motor Corporation, - Indianapolis, Ind. 6 1,885 to 3,150 - “Princess” Princess Motor Car - Corporation, - Detroit, Mich. 4 775 - “Pullman” Pullman Motor Car Co., - York, Pa. 4 825 to 1,150 - “Rauch & Lang” Baker R. & L. Co., - Cleveland, O. - (Electric) .... 2,800 to 3,000 - “Regal” Regal Motor Car Co., - Detroit, Mich. 4 745 - “Reo” Reo Motor Car Co., - Lansing, Mich. 4-6 875 to 1,750 - “Richard” Richard Auto - Manufacturing Co., - Cleveland, O. 4 7,500 - “Richmond” The Wayne Works, - Richmond, Ind. 6 on application - “Roamer” Barley Motor Co., - Streator, Ill. 6 1,850 - “Rose” Rose Automobile Co., - Detroit, Mich. 8 1,550 - “Saurer” Saurer Motor Co., - New York, N. Y. - “Saxon” Saxon Motor Corporation, - Detroit, Mich. 4-6 495 to 1,250 - “Scripps-Booth” Scripps Booth - Corporation, - Detroit, Mich. 4-8 825 to 2,575 - “Seneca” Seneca Motor Car Co., - Fostoria, O. 4 735 - “Simplicity” Evansville Automobile Co., - Evansville, Ind. - “Simplex” Simplex Automobile Co., - New York, N. Y. - (Chassis only) 6 6,000 - “Singer” Singer Motor Car Co., - New York, N. Y. 6 3,800 to 5,300 - “Standard” Standard Steel Car Co., - Pittsburgh, Pa. 8 1,950 to 2,000 - “Stanley - Steam Car” Stanley Motor - Carriage Co., - Newton, Mass. - (Steam) .... 2,200 to 2,300 - “States” States Motor Car - Manufacturing Co., - Kalamazoo, Mich. 4 845 - “Stearns” F. B. Stearns Co., - Cleveland, O. 4-8 1,450 to 3,500 - “Stephens” Stephens Motor Branch, - Moline Plow Co., - Freeport, Ill. 6 1,150 - “Studebaker” Studebaker Corporation, - Detroit, Mich. 4-6 930 to 2,600 - “Stutz” Stutz Motor Car Co., - Indianapolis, Ind. 4 2,275 to 2,550 - “Sun” Sun Motor Car Co., - Elkhart, Ind. 6 1,095 to 1,295 - “Thomas” E. R. Thomas Motor - Car Co., - Buffalo, N. Y. 6 4,000 to 5,000 - “Velie” Velie Motors Corporation, - Moline, Ill. 6 1,115 to 2,200 - “Waco” Western Automobile Co., - Seattle, Wash. 4 950 - “Westcott” Westcott Motor Car Co., - Springfield, O. 6 1,500 to 2,190 - “White” White Motor Co., - Cleveland, O. 4 4,600 up - “Willys-Knight” Willys-Overland Co., - Toledo, O. 6 1,325 - “Willys-Knight” Willys-Overland Co., - Toledo, O. 4-8 1,285 to 1,950 - “Winton” Winton Co., - Cleveland, O. 6 2,685 to 4,750 - “Woods” Woods Mobilette Co., - Chicago, Ill. 4 380 - “Wood’s Dual - Power” Woods Motor Vehicle Co., - Chicago, Ill. - (Electric) .... 2,650 - “Yale Eight” Saginaw Motor Car Co., - Saginaw, Mich. 8 1,550 - - - - -CHAPTER VIII. - -GASOLINE TRUCKS AND DELIVERY CARS MANUFACTURED IN THE UNITED STATES. - - -This chapter is reprinted from _Everybody’s Magazine_ through the -courtesy of its publishers, who were kind enough to grant this -permission. This list was compiled so ably by the editorial staff of -_Everybody’s Magazine_ that it could not possibly have been improved -upon for publication in this volume. - -A part of the information in the preceding chapter is also from -_Everybody’s Magazine_, and is reprinted here through the courtesy of -the publishers. - -The cars and trucks listed have four cylinders, unless stated -otherwise. The prices are those that were in effect prior to April 1, -1917. - - Capacity Tons Prices - “Acason,” Acason Motor Truck Co., - Detroit, Mich., 2 models. Chassis - only. Hotchkiss drive 2 and 3-1/2 On application - “Acme,” Cadillac Auto Truck Co., - Cadillac, Mich., 3 models. Bodies - extra. Worm drive 1 to 3-1/2 $1575 and $3000 - “Armleder,” The O. Armleder Co., - Cincinnati, Ohio, 2 models. Bodies - extra. Worm drive 2 and 3-1/2 2800 and 3500 - “Atlas,” Martin Carriage Works, York, - Pa., 1 model. Bodies extra. Hotchkiss 1000 to - drive 1500 lbs. 750 - “Atterbury,” Atterbury Motor Car Co., - Buffalo, N. Y., 4 models. Chassis - only. Worm drive 1 to 3-1/2 1875 to 3375 - “Autocar,” The Autocar Co., Ardmore, - Pa., 1 model, 2 cylinders. Bodies - extra. Shaft drive 1-1/2 to 2 $1650 - “Available,” Available Truck Co., Chicago, - Ill., 4 models. Worm drive 1 to 5 1700 to $4400 - “Avery,” Avery Company, Peoria, Ill., - 3 models. Bodies extra. Chain drive 2 to 5 2700 to 4500 - “Beck,” Beck & Sons, Cedar Rapids, - Iowa, 4 models. Bodies extra. Internal - Gear drive 1 to 2-1/2 1080 to 2000 - “Beech Creek,” Beech Creek Truck - & Auto Co., Beech Creek, Pa., 1 - model. Chassis only. Gear drive 3 3850 - “Bessemer,” Bessemer Motor Truck - Co., Grove City, Pa., 4 models. Bodies - extra. Worm drive 1 to 5 1075 to 4000 - “Brinton,” Brinton Motor Truck Co., - Philadelphia, Pa., 2 models. Chassis, - including Cab 1 and 2-1/2 995 to 2250 - “Briscoe,” Briscoe Motor Corp., Jackson, - Mich., 2 models. Complete Shaft - drive 3/4 700 and 725 - “Brockway,” Brockway Motor Truck - Co., Cortland, N. Y., 6 models. - Complete. Worm drive 1 to 2-1/2 1500 to 2250 - “Burford,” Burford Motor Truck Co., - Fremont, Ohio, 2 models. Chassis - only. Worm and Internal Gear - drive 2 and 4 2250 to 3600 - “Chase,” Chase Motor Truck Co., Syracuse, - N. Y., 5 models. Complete. - Worm drive 3/4 to 3-1/2 1500 to 3200 - “Coey,” Coey Motor Co., Chicago, Ill., - 1 model. Express bodies extra. - Shaft drive 1/2 695 - “Collier,” Collier Motor Truck Co., - Sandusky, Ohio, 1 model. With or - without body. Direct bevel drive 3/4 900 and 995 - “Commerce,” Commerce Motor Car Co., - Detroit, Mich., 2 models, 6 bodies. - Internal and Bevel Gear drive 3/4 and 1 875 to 1140 - “Corbitt,” Corbitt Motor Truck Co., - Henderson, N. C., 6 models. Bodies - extra. Worm drive 1 to 5 1450 to 3850 - “Couple Gear,” Couple Gear Freight - Wheel Co., Grand Rapids, Mich., 3 - models. Four-wheel drive. Complete. - (Gas electric.) 3-1/2 to 7 5200 to 6000 - “Crane & Breed,” Crane & Breed Mfg. - Co., Cincinnati, Ohio, Funeral cars. - etc. 6 cylinders 3000 to 4200 - “Crowther-Duryea,” Crowther Motor - Co., Rochester, N. Y., 1 model. Complete. - Roller drive 1/2 600 - “Dart,” Dart Motor Truck Co., Waterloo, - Iowa, 3 models. Bodies extra. - Worm drive 1/2 to 2-1/2 1200 to 2470 - “Dayton,” Dayton Motor Truck Co., - Dayton, Ohio, 6 models. Chain and - Worm drive 2 to 7-1/2 2650 to 4950 - “D-E,” Day-Elder Motors Co., Newark, - N. J., 3 models. Bodies extra. - Worm drive 1/2 to 1-1/2 975 to 1800 - “De Kalb,” DeKalb Wagon Co., DeKalb, - Ill., 2 models. Bodies extra 2 to 2-1/2 2100 to 2450 - “Denby,” Denby Motor Truck Co., Detroit, - Mich., 4 models. 1-ton complete. - Other bodies extra. Internal - gear drive 1 to 2-1/2 1275 to 2150 - “Den Mo,” The Denneen Motor Co., - Cleveland, Ohio., 1 model. Chassis - only. Internal gear drive 1-1/4 to 1-7/8 1385 - “Diamond T,” Diamond T Motor Car - Co., Chicago, Ill., 5 models. Chassis - only 1 to 5 1485 to 4100 - “Dispatch,” Dispatch Motor Car Co., - Minneapolis, Minn., 2 models. Complete. - Internal chain drive 3/4 1100 to 1200 - “Dorris,” Dorris Motor Car Co., St. - Louis, Mo., 1 model. Chassis only. - Worm drive 2 2185 - “Downing,” Downing Motor Truck - Co., Detroit, Mich., 2 models 3/4 to 1-1/2 600 and 750 - “Duplex 4-Wheel Drive,” Duplex - Truck Co., Lansing, Mich., 1 model. 3-1/2 3600 - “Ellsworth,” Mills-Ellsworth Co., Keokuk, - Iowa, 1 model. Complete 1/2 695 and 720 - “Erie,” Erie Motor Truck Mfg. Co., - Erie, Pa., 3 models. Bodies extra. - Worm drive 1 to 3-1/2 1500 to 3000 - “Fargo,” Fargo Motor Car Co., Chicago, - Ill., 1 model. Bodies extra. - Internal Gear drive 2 1390 - “F. W. D.,” Four-Wheel Drive Auto - Co., Clintonville, Wis., 1 model. - Chassis only. Bevel Gear drive 3 4000 - “Federal,” Federal Motor Truck Co., - Detroit, Mich., 5 models. Bodies - extra. Worm drive 1 to 5 1650 to 4000 - “Gabriel,” Gabriel Auto Co., Cleveland, - Ohio, 3 models. Chassis only. - Worm drive 3/4 to 1-1/2 1600 to 2300 - “Garford,” The Garford Motor Truck - Co., Lima, Ohio, 10 models. Bodies - extra. Worm and Chain drive 1 to 10 1750 to 6000 - “Gary,” The Gary Motor Truck Co., - Gary, Ind., 5 models. Worm drive 3/4 to 3-1/2 On application - “Globe,” Globe Motor Truck Co., - Northville Mich., 2 models, 6 cylinders. - Chassis only. Worm and Internal - Gear drive 1 and 2 1375 and 1985 - “G. M. C.,” General Motors Truck Co., - Pontiac, Mich., 6 models. Bodies - extra. Chain and Worm drive 3/4 to 5 1150 to 4150 - “Gramm-Bernstein,” Gramm-Bernstein - Motor Truck Co., Lima, Ohio., 6 - models. Bodies extra. Worm drive 1 to 6 On application - “Hahn,” Hahn Motor Truck & Wagon - Co., Hamburg, Pa., 4 models. Worm - drive 3/4 to 3-1/2 1150 to 4150 - “Hall,” Lewis Hall Iron Works, Detroit, - Mich., 3 models. Worm and - Chain drive 2 to 5 2000 to 3600 - “Harley-Davidson,” Harley-Davidson - Motor Co., Milwaukee, Wis., 3 models. - Cycle delivery 300 lbs. 310 to 380 - “Harvey,” Harvey Motor Truck Company, - Harvey, Ill., 3 models. Bodies - extra. Worm drive 2-1/2 to 5 2500 to 4000 - “Hatfield,” Cortland Cart & Carriage - Co., Sidney, N. Y., 3 models. Complete. - Bevel Gear drive 1000 lbs. 765 to 820 - “Hawkeye,” Hawkeye Mfg. Co., Sioux - City, Iowa, 1 model. Chassis only. - Internal Gear drive 1-1/4 1300 - “Henderson Bros.” Henderson Bros., - North Cambridge, Mass., 2 models. 1200 lbs. - Chassis only. Worm drive and 1 ton 1225 and 1500 - “Hewitt-Ludlow,” Hewitt-Ludlow Auto - Co., San Francisco, Cal. 5 models. - Chassis only. Worm and Chain - drive. Also tractors 1 to 5 1800 to 4550 - “Hoover,” Hoover Wagon Co., York, - Pa., 1 model. Bodies to order. - Worm drive 3/4 1190 - “Horner,” Detroit-Wyandotte Motor - Truck Co., Wyandotte, Mich., 4 - models. Bodies extra. Worm drive 1 to 5 2350 to 4200 - “Houghton,” The Houghton Motor Car - Co., Marion, Ohio, hearses and ambulances. - Worm drive 3/4 1585 to 1650 - “Hurlburt,” Hurlburt Motor Co., New - York City, N. Y., 5 models. Worm - drive. Chassis only 1-1/2 to 7 2250 to 5000 - “Independent,” Independent Motors - Co., Port Huron, Mich., 2 models. - Worm drive 1 and 2 1385 and 1850 - “Indiana,” Indiana Truck Co., Marion, - Ind., 4 models. Bodies extra 1 to 5 1385 to 3500 - “International,” International Harvester - Co., Chicago, Ill., 2 models. - Bodies extra. Internal Gear drive. 3/4 and 1 1225 and 1500 - “Jeffery,” The Nash Motors Co., Kenosha, - Wis., 3 models. Bodies extra. - Bevel and Internal Gear drive 3/4 to 2 965 to 2850 - “Kearns,” Kearns Motor Truck Co., - Beavertown, Pa., 1 model. Complete. - Shaft drive 1000 lbs. 785 - “Kelly,” The Kelly-Springfield Motor - Truck Co., Springfield, Ohio, 8 models. - Chassis only. Worm and - Chain drive 1-1/2 to 6 2250 to 4600 - “King,” A. R. King Mfg. Co., Kingston, - N. Y., 1 model. Chassis only. Chain - drive 3-1/2 2600 - “Kissel,” The Kissel Motor Co., Hartford, - Wis., 7 models. Bodies extra. - Worm and bevel drive 3/4 to 5 950 to 2850 - “Kleiber,” Kleiber & Co., Inc., San - Francisco, Cal., 5 models. Bodies - extra. Worm drive 1-1/2 to 5 2250 to 4500 - “Knickerbocker,” Knickerbocker Motors, - Inc., N. Y. City, 3 models. - Bodies extra. Worm drive. Also - 3-ton tractor 3 to 5 3500 to 4500 - “Koehler,” H. J. Koehler Motors Corp., - Newark, N. J., 1 model. Bodies - extra. Internal Gear drive 1 895 - “Koenig & Luhrs,” Koenig & Luhrs - Wagon Co., Quincy, Ill., 1 model 3/4 900 - “Krebs,” Krebs Commercial Car Co., - Clyde, Ohio, 4 models. Bodies extra. - Worm drive 1-1/2 to 5 2050 to 4000 - “Lambert,” Buckeye Mfg. Co., Anderson, - Ind., 5 models. Also tractors. - Chain drive 1/2 to 2 900 to 2200 - “Lamson,” Zeitler & Lamson Truck - Co., Chicago, Ill., 4 models. Chassis - only. Worm drive. Also tractor - and dumping equipment 1 to 5 1550 to 4350 - “Lange,” Lange Motor Truck Co., - Pittsburgh, Pa., 2 models. Bodies - extra 1 to 3-1/2 1850 to 2450 - “Larrabee,” Larrabee-Deyo Motor - Truck Co., Binghamton, N. Y., 4 - models. Bodies extra. Worm drive 1 to 2-1/2 1600 to 3300 - “Lenox,” Lenox Motor Car Co., Boston, - Mass., 2 models, 4 and 6 cylinders. - 12 to 28 tons haulage Tractor On application - “Leslie,” Leslie Motor Car Co., Detroit, - Mich., 1 model. Kerosene fuel 3/4 On application - “Lippard-Stewart,” Lippard-Stewart - Motor Car Co., Buffalo, N. Y., 5 - models. Bodies extra. Worm drive 1/2 to 2 1000 to 2600 - “Little Giant,” Chicago Pneumatic - Tool Co., Chicago, Ill., 3 models. - Bodies extra. Chain and Worm - drive 1 to 5 1400 to 4250 - “Maccar,” Maccar Truck Co., Scranton, - Pa., 4 models. Chassis only. - Worm drive 1 to 5-1/2 2100 to 4150 - “Mack,” International Motor Co., N. - Y. City, 6 models. Chassis only. - Chain and Worm drive 1 to 7-1/2 2150 to 4600 - “Maxim,” Maxim Motor Co., Middleboro, - Mass., 2 models, 4 and 6 cylinders. - Bodies extra. Fire apparatus - special. Worm drive 2 2500 and 3500 - “M. H. C.,” Michigan Hearse & Motor - Co., Grand Rapids, Mich., funeral - cars, etc., 6 cylinders On application - “The Menominee,” Menominee Motor - Truck Co., Menominee, Mich., 5 - models. Bodies extra. Worm drive. 3/4 to 3-1/2 1295 to 2775 - “Mercury,” The Mercury Mfg. Co., - Chicago, Ill., tractor, 3 models 3400 - “Modern,” Bowling Green Motor Truck - Co., Bowling Green, Ohio, 2 models. - Chassis only. Worm drive 1 and 2 1500 and 2000 - “Moeller,” New Haven Truck & Auto - Works, New Haven, Conn., 3 models. - Bodies extra. Chain drive 1-1/2 to 5 2500 to 4500 - “Mogul,” Mogul Motor Truck Co., St. - Louis, Mo., 4 models. Bodies extra. - Worm and Chain drive 1-1/2 to 6 1600 to 4000 - “Monarch,” Monarch Light Truck Co., - Milwaukee, Wis., 2 models. Bodies - extra. Worm drive 1/2 and 1 750 and 950 - “Moon,” Jos. W. Moon Buggy Co., St. - Louis, Mo., 2 models. Bodies extra. - Chain and Shaft drive 3/4 to 1-1/2 950 and 1650 - “Moreland,” Moreland Motor Truck - Co., Los Angeles, Cal., 4 models. - Chassis only. Worm drive 3/4 to 5 1290 to 4250 - “Morton,” Morton Truck and Tractor - Co., Harrisburg, Pa., 1 model. - Chassis only. Worm drive 3 4250 - “Nelson Lemoon,” Nelson & LeMoon, - Chicago, Ill., 4 models. Worm drive. - Chassis only 1 to 5 1700 to 4200 - “Netco,” New England Truck Co., - Fitchburg, Mass., 3 models, 4 and 6 - cylinders. Bodies and fire apparatus - extra. Worm drive 1-1/2 to 2 2350 to 4250 - “Niles,” Niles Car & Mfg. Co., Niles, - Ohio, 2 models. Bodies to order. - Worm drive 1 and 2 1500 to 2400 - “Northwestern,” Star Carriage Co., - Seattle, Wash., 1 model. Bodies - extra. Worm drive 1-1/2 2150 - “Old Hickory,” Kentucky Wagon Mfg. - Co., Louisville, Ky., 1 model. Bodies - extra. Bevel Gear drive 1250 lbs. 825 - “Old Reliable,” Old Reliable Motor - Truck Co., Chicago, Ill., 12 models. - Bodies and trailers extra. Chain - and Worm drive 1-1/2 to 7 1950 to 5000 - “Packard,” Packard Motor Car Co., - Detroit, Mich., 7 models. Bodies - extra. Worm drive 1 to 6 2200 to 4550 - “Palmer-Moore,” Palmer-Moore Co., - Syracuse, N. Y., 2 models. Bodies - extra. Internal Gear drive 1 and 2 1075 and 1675 - “Paragan,” Paragan Motor Truck Co., - Auburn, Ind., 1 model, 4 bodies 1 975 - “Peerless,” Peerless Motor Car Co., - Cleveland, Ohio, 6 models. Bodies - and tractors extra. Chain and - Worm drive 2 to 6 3000 to 5000 - “Pierce-Arrow,” Pierce-Arrow Motor - Car Co., Buffalo, N. Y., 2 models. - Bodies extra. Worm drive 2 and 5 3000 to 4500 - “Piggins,” Piggins Motor Truck Co., - Racine, Wis., 4 models. Chassis - only. Enclosed Spur Gear drive 1 to 5 1750 to 3850 - “Rainer,” Rainer Motor Corp., N. Y. - City, 1 model. Bodies extra. Worm - drive 1/2 875 - “Reo,” Reo Motor Car Co., Lansing, - Mich., 2 models 3/4-ton with express - body. Other, chassis only. Shaft - and Chain drive 3/4 and 5 1000 and 1650 - “Republic,” Republic Motor Truck Co., - Alma, Mich., 4 models, 3/4-ton complete. - Other bodies extra. Internal - Gear drive 3/4 to 5 750 to 2550 - “Riker,” The Locomobile Co. of America, - Bridgeport, Conn., 2 models. - Bodies, tractor, etc., extra. Worm - drive 3 and 4 3600 to 3750 - “Rowe,” Rowe Motor Mfg. Co., Downington, - Pa., 5 models. Chassis only. - Fire apparatus special 1 to 5 2450 to 4500 - “Rush,” Rush Motor Truck Co., Philadelphia, - Pa., 1 model. Bodies extra. - Bevel Gear drive. 1/2 735 - “Sandow,” Sandow Motor Truck Co., - Chicago, Ill., 4 models. Bodies extra. - Worm drive 1 to 3-1/2 1150 to 3250 - “Sanford,” Sanford Motor Truck Co., - Syracuse, N. Y., 3 models. Chassis - only. Internal Gear drive 3/4 to 2 1290 to 2100 - “Saurer,” International Motor Co., N. - Y. City, 2 models. Chassis only. 5 and - Chain drive 6-1/2 4800 to 5800 - “Schacht,” The G. A. Schacht Motor - Truck Co., Cincinnati, Ohio, 3 models. 1-1/2 - Bodies extra. Worm drive to 3 2650 to 3200 - “Selden,” Selden Truck Sales Co., - Rochester, N. Y., 5 models. Bodies 3/4 - extra. Worm drive to 3-1/2 985 to 3150 - “Service,” Service Motor Truck Co., - Wabash, Ind., 5 models. Bodies - extra. Worm drive 1 to 5 1375 to 4000 - “Signal,” Signal Motor Truck Co., Detroit, - Mich., 5 models. Bodies extra. - Worm drive 1 to 5 1550 to 4000 - “Standard,” Standard Motor Truck - Co., Detroit, Mich., 3 models. Chain - and Worm drive 2 to 5 2300 to 3700 - “Stanley,” Stanley Motor Carriage - Co., Newton, Mass., 2 models, steam 3/4 - power. Bodies extra to 1-1/4 1775 to 2200 - “Stegeman,” Stegeman Motor Car Co., - Milwaukee, Wis., 5 models, 6 cylinders. - Bodies extra. Worm drive 2 to 7 2250 to 4600 - “Sterling,” Sterling Motor Truck Co., - Milwaukee, Wis., 4 models. Chassis - only. Worm and Chain drive 2-1/2 to 7 2800 to 5250 - “Stewart,” Stewart Motor Corp., Buffalo, - N. Y., 3 models. Bodies extra. 3/4 - Internal Gear drive to 1-1/2 795 to 1485 - “Studebaker,” Studebaker Corp. of - America, Detroit, Mich., 2 models. - With and without bodies. Shaft - drive 1/2 and 1 876 to 1250 - “Superior,” E. G. Willingham’s Sons, - Atlanta, Ga., 2 models. Bodies - extra. Internal Gear drive 1 and 2 1350 and 1800 - “Thomas,” Thomas Auto Truck Co., - Inc., New York City, 1 model. Bodies - extra. Worm drive 2 to 2-1/2 2700 - “Ton A Ford” (Extension Chassis), - Ton A Ford Truck Co., Racine, Wis. - Ford chassis and motor. Bodies - extra 1 685 - “Tower,” Tower Motor Truck Co., - Greenville, Mich., 5 models. Bodies - extra 3/4 to 3 1150 to 2500 - “Trabold,” Trabold Truck Mfg. Co., - Johnstown, Pa., 2 models. Chassis - only 1 and 2 975 and 1750 - “Trojan,” The Commercial Truck Co., - Cleveland, Ohio, 2 models. Bodies - extra. Worm drive 1 1500 and 1600 - “United,” United Motors Co., Grand - Rapids, Mich., 4 models. Bodies - extra. Worm drive 2 to 5 2250 to 3900 - “U. S.,” United States Motor Truck - Co., Cincinnati, Ohio, 5 models. - Bodies extra. Chain and Worm 2-1/2 - drive to 5 2500 to 4400 - “Universal,” Universal Service Co., - Detroit, Mich., 4 models. Bodies 1-1/2 - extra. Chain and Worm drive to 3 2000 to 3400 - “Veerac,” Veerac Company, Minneapolis, - Minn., 3 models, 2 cylinders. 3/4 - Complete. Chain drive and 1 950 to 1150 - “Velle,” Velle Motors Corp., Moline, - Ill., 2 models. Bodies extra. Worm - drive 2 and 3-1/2 2250 and 3350 - “Viall,” Viall Motor Car Co., Chicago, - Ill., 4 models. Chassis only. Chain - and Worm drive 1-1/2 to 5 1650 to 3250 - “Vim,” Vim Motor Truck Co., Philadelphia, - Pa., 12 delivery bodies. - Complete. Bevel Gear drive 695 to 1385 - “Voltz,” Voltz Brothers, Chicago, Ill., - 2 models. Bodies extra. Chain - drive 3 and 5 2750 and 3600 - “Walter,” Walter Motor Truck Co., N. - Y. City., 6 models. Also tractor. - Bodies extra. Internal Gear drive 3 to 7-1/2 4000 to 4500 - “Ware,” Twin City Four Wheel Drive - Co., St. Paul, Minn., 3 models. Complete. - Direct Shaft drive 2-1/2 and 5 2800 to 4800 - “Watson,” Watson Wagon Co., Canastota, - N. Y. Tractor and Trailer 5 On application - “White,” The White Co., Cleveland, - Ohio, 4 models. Bodies extra. Fire - apparatus, etc., special. Chain and 3/4 to - Shaft drive 5 2100 to 4500 - “Wichita,” Wichita Falls Motor Co., - Wichita Falls, Texas, 8 models. - Bodies extra. Worm and Chain - drive 1 to 5 1650 to 3850 - “Wilcox Trux,” Wilcox Motor Truck - Co., Minneapolis, Minn., 5 models. 3/4 to - Bodies extra. Worm drive 3-1/2 On application - “Wilson,” J. C. Wilson Co., Detroit, - Mich., 4 models, 5-ton haulage. - Body extra. Worm Gear drive 1 to 3 1375 to 2650 - “Wisconsin,” Myers Machine Co., Sheboygan, - Wis., 4 models. Bodies - extra. Worm drive 1-1/4 to 5 1650 to 4500 - “Wonder,” Wonder Motor Truck Co., - Chicago, Ill., 1 model, 3 bodies. - (Truck and Pleasure.) 1 800 to 850 - - - ELECTRIC COMMERCIAL VEHICLES - - “Atlantic,” Atlantic Electric Vehicle - Co., Newark, N. J., 4 models. With - or without bodies. Chain drive 1 to 5 On application - “Beardsley,” Beardsley Electric Vehicle - Co., Los Angeles, Cal., 2 models. 150 and - Shaft drive 2000 lbs. 1185 and 2000 - “C. T.” Commercial Truck Co. of - America, Phila., Pa., 5 models. - Chassis only. Gear drive 1/2 to 5 1500 to 3500 - “Couple Gear,” Couple Gear Freight - Wheel Co., Grand Rapids, Mich., 2 - models. Four-wheel drive. Complete 3-1/2 and 5 4400 and 5000 - “Fritchie,” Fritchie Electric Co., Denver, - Colo., 1 model. Complete 1/2 2000 - “G. V.,” General Vehicle Co., Inc., - Long Island City, N. Y., 6 models. - Bodies extra. Worm and Chain - drive 1/2 to 5 1700 to 3700 - “Lansden,” Lansden Co., Inc., Brooklyn, - N. Y., 6 models. Chassis only. - Chain and direct drive 1/2 to 6 1460 to 3500 - “Mercury,” The Mercury Mfg. Co., - Chicago, Ill., 3 models Tractor 1274 to 4435 - “Walker,” Walker Vehicle Co., Chicago, - Ill., 6 models. Chassis only. - Tractors up to 10 tons. Balance - drive 1/2 to 5 On application - “Ward,” Ward Motor Vehicle Co., - Mount Vernon, N. Y., 5 models. - Chassis only. Worm and Helical - Bevel drive 1/3 to 5 760 up - - - - -GENERAL INDEX - - - Page - Abbott Corporation, 96-221 - - Accessories; importance in the automobile industry, 120 - - Advertising; influence in popularizing automobiles, 83, 84, 85, 86, - 87, 88, 91, 97 - - Aid by dealers in promoting automobile industry, 143, 144 - - Ajax Rubber Tire Co., 178, 179, 182, 188, 190 - - Alliance Rubber Tire Co., 182, 188 - - Allison, Robert, purchaser of first American gasoline car, 76 - - Allen Motor Car Co., 96, 221 - - Aluminum, extent of use in automobiles, 44 - - American Automobile Association, 35, 133, 135 - - American Motors Corporation, 95, 182, 188, 221 - - America’s part in inventing fundamentals of the automobile, 77 - - America’s part in the first commercialization of the automobile, 78 - - Apperson Brothers, 115, 194, 221 - - Appreciation in value of automobile stocks, 201, 202 - - Association of Licensed Automobile Manufacturers, 37, 38, 39, 109, - 112, 135 - - Attitude of people toward the automobile in 1893-8, 75 - - Auburn Automobile Co., 95, 221 - - Auto Body Co., 193 - - Automobile, accessories and tire securities traded in on New York - Curb 1906, 1909, 1912 and 1916, 187-191 - - Automobile market for 1917, estimated, 215, 216, 217, 218 - - Automobiles, commercial—names, capacity, maker, price, 231-242 - - Automobile securities traded in on New York Stock Exchange, 1906, - 1909, 1912 and 1916, 178-183 - - Automobiles, passenger—names, cylinders, maker, price, 221-229 - - Average price all motor vehicles, 1916, 100, 139, 174, 175 - - Average price of automobile and tire stocks traded in on New York - Stock Exchange 1906, 1909, 1912 and 1916, 185 - - Average price of automobile tire and accessories stocks traded in on - New York Curb 1906, 1909, 1912 and 1916, 192 - - - Benefits of the automobile in affording first hand knowledge—social - and economic value, 155-166 - - Ben-Hur Motor Co., 96, 221 - - Benz, builder of first internal combustion road vehicle, 69, 74, 77 - - Blanchard, Thomas, early American auto builder, 62 - - Bollee, Frenchman who attained highest efficiency in early automobile - construction, 64, 65, 67 - - Bouton, French maker of gasoline cars, 72, 78 - - Brady, A. F., early automobile capitalist, 108 - - Brush Automobile Co., 201 - - Buick Motor Co., 95, 221 - - - Cadillac Motor Co., 93, 95, 115, 222 - - Capital invested in automobiles, 141 - - Case, J. I., T. M. Co., 95, 222 - - Chalmers Motor Car Co., 96, 115, 118, 181, 187, 193, 196, 222 - - Chandler Motor Co., 96, 178, 179, 182, 188, 190, 222 - - Character of American people largely responsible for automobile’s - commercial success, 89, 90 - - Chevrolet Motor Co., 96, 181, 187, 193, 205, 222 - - Chromium—value in automobile construction, 129 - - Cole Motor Car Co., 96, 222 - - Columbia Motor Co., 201, 222 - - Columbia Automobile Co. of New Jersey, 108 - - Companies whose securities are not generally traded in, 184, 185 - - Consolidated Car Co., 194 - - Continental Motors, 193 - - Consolidated Rubber Tire Co., 182, 188 - - Co-operation in automobile industry, 125, 126, 127, 128, 129, 130, - 132, 133, 134, 135, 136, 137 - - Crow-Elkhart Motor Car Co., 96, 221 - - Cugnot, Nicholas Joseph, inventor of first automobile, 50, 51, 52, - 53, 54, 57, 77, 78 - - Cunningham, Jas. Son & Co., 96, 222 - - - Daimler, Gottlieb, inventor of hot tube ignition, 69, 70, 77 - - Decrease in average price of automobiles, 28, 100, 175 - - De Dion, French maker of gasoline cars, 72, 78 - - Depreciation in automobile stocks, 201, 202 - - Detroit Automobile Co., 93 - - Difficulty in getting capital, 142 - - Distribution of leading motor cars by states, 213 - - Doble, builder of steam cars, 118, 223 - - Dodge Brothers, 96, 194, 223 - - Dorris Motor Car Co., 95, 223 - - Dort Motor Car Co., 96, 223 - - Drexel Motor Car Corporation, 96, 223 - - Duryea, Charles E., builder of first gasoline automobile in America - that ran (frontispiece), 72, 74, 76, 92, 93 - - - Economy of factory operation, 43, 130, 131, 132 - - Edmunds & Jones Corporation, 197 - - Electric automobiles; when first sold in commercial quantities in the - United States, 78 - - Electric Vehicle Co., 182, 188 - - Electric Vehicle Co. of New Jersey, 69, 114 - - Elgin Motor Car Co., 96, 223 - - Emerson Motors Co., 181, 187, 201, 223 - - Enger Motor Car Co., 182, 188, 223 - - Enthusiasm part in industry’s success, 92 - - Essex Motor Co., 183, 189 - - Evans, Oliver, first known American experimenter with steam - automobile, 57, 58, 59, 60, 72 - - - Falls Motor Co., 181, 187 - - Federal Motor Truck Co., 194, 234 - - Firestone Tire & Rubber Co., 193, 199 - - First automobile ever made, 50, 51, 52, 53 - - First auto race in America, 73 - - First auto race in the world, 73 - - First automobile run on a road with any success, 56 - - First chaise propelled by other than horse power, 50 - - First electric automobile built and first sold in the United States, - 71, 118 - - First automobile built in America that ran; first sold in the United - States, 72, 73, 74, 75, 76, 118 - - First modern steam car built in the United States; first sold in the - United States, 70, 118 - - First use of internal combustion to drive piston in cylinder, 50 - - Fisher Body Corporation, 183, 189, 197, 198 - - Fisk Tire Co., 183, 189, 200 - - Ford, Henry (frontispiece), 37, 38, 39, 74, 76, 81, 83, 92, 93, 94, - 98, 101, 102, 110, 111, 112, 113, 114, 115 - - Ford Motor Co., 94, 95, 194, 224 - - Ford Motor Company of Canada, 193, 195, 224 - - Ford Tractor Co., 201 - - Franklin, Benjamin Frontispiece, - - Franklin, H. H. Mfg. Co., 95, 115, 195, 224 - - Frederick, J. George, quotation, 148, 149 - - Future of automobile accessories, 216, 217 - - Future of automotive inventions in rural districts, 124, 125 - - Future of commercial automobiles, 116, 117 - - Future of electric automobile industry, 116 - - Future of automobile industry as an investment, 145, 146, 147, 149, - 150, 151, 152, 153, 154, 216, 217 - - Future of the tire industry and stocks, 217 - - Future trend of automobile securities, 206, 207, 209 - - - General Motors Co., 29, 178, 179, 182, 183, 188, 189, 190, 193, 196, - 197, 234 - - Glide automobile, 95, 224 - - Goodrich, B. F. Co., 178, 179, 182, 188, 190, 193 - - Good roads; aid to automobile increase, 46, 47, 133, 166 - - Goodyear Tire & Rubber Co., 193 - - Gramm Motor Truck Co., 195, 234 - - Grant Motor Car Corporation, 181, 187, 224 - - Growth, record for rapidity held by automobile industry, 173 - - Gurney, Goldsworthy, early English automobile builder, 63, 77 - - - Hancock, Walter, early English automobile builder, 63, 77 - - Harroun Motors Corporation 96, 201, 224 - - Haynes Automobile Co., 195, 224 - - Haynes, Elwood, builder of third successful gasoline car made in - America, 74, 76, 77, 92, 93, 94, 115 - - High and low prices during 1916 of representative mining, steel, - industrial and railroad groups of securities compared with - similar groups in automobile field, 204 - - Horses, what each consumes and number in United States, 168 - - Hudson Motor Car Co., 96, 225 - - Hupp Motor Car Corporation 96, 225, 181, 187 - - - Imperial Carbon Chaser Co., 181, 187 - - Increase in production of motor trucks, 100, 139, 140 - - Increase of population in United States in 16 years, 91 - - Increase of wealth in United States in 12 years, 91 - - Intercon. Rubber Co., 183, 189 - - Inter. Motors Co., 189 - - Interstate Motor Co., 96, 225 - - - James, W. H., English inventor and auto builder, 61, 62, 77 - - - Kelly Springfield Tire Co., 178, 179, 183, 189, 190, 202, 205 - - Kelsey Wheel, 183, 189 - - Keystone Tire & Rubber Co., 181, 187 - - Kissel Motor Car Co., 96, 195 - - Knight, inventor of motor, 77, 229 - - - Lee Tire & Rubber Co., 178, 179, 183, 189, 190, 205 - - Leland, of the Cadillac Co., 115 - - Levassor, who solved problem of road shock, 72, 77 - - Lexington motor car, 96, 225 - - Locomobile Company of America, 95, 225 - - - Madison Motors Co., 96, 226 - - Machining, part played by, 43, 44, 130 - - Maibohm Motors Co., 96, 226 - - Marmon automobile, 95, 226 - - Maxwell-Briscoe, 201 - - Maxwell Motor Co., 96, 178, 179, 190, 193, 201, 226 - - McDonald, J. B., purchaser first electric automobile built, 71 - - Mechanical imperfections of early automobiles, 61 - - Metropolitan Motors Co., 183, 189 - - Mitchell Motors Co., 95, 181, 187, 195, 226 - - Moline-Knight, 95, 226 - - Monarch Motor Car Co., 96, 226 - - Money-earning possibilities of automobile investments now the - greatest, 174 - - Moon Motor Car Co., 96, 226, 237 - - Morrison, William, builder first electric automobile, 71 - - Motor Products Co., 183, 189, 197, 198 - - Murdock, William, builder of model of second automobile, 54, 55, 56 - - Mutual Motors Co., 195 - - - National Automobile Chamber of Commerce, 28, 29, 30, 38, 135 - - National Auto Corporation, 181, 187 - - National Motor Car & Vehicle Corporation, 196, 227 - - Newer entrants into securities market, 200, 201 - - Non-Skid chain, 122 - - Non-Skid tread, 123 - - Number of automobile manufacturers who failed, 30, 97, 106 - - Number of automobiles produced in 1903, 30 - - Number of automobiles produced in 1907, 33 - - Number of automobiles produced in 1908, 34 - - Number of automobiles produced in 1909-10-11-12-13-14-15-16, 30, 34, - 100, 139, 150 - - Number of commercial vehicles produced in 1915, 146 - - Number of commercial vehicles produced in 1916, 28, 140, 147 - - Number of farms in United States, 146 - - Number of miles of roads improved and unimproved in United States, 168 - - Number of passenger automobiles produced in 1916, 28 - - Number of people in United States with incomes over $1,800, 41 - - Number of people in United States with incomes over $1,200, 41 - - Number of “rich” people in the United States, 145 - - - Oakland Motor Car Co., 96, 227 - - Ohio Electric Car Co., 96, 227 - - Olds, successful American auto builder, 81, 95, 115, 227 - - Opposition, early, to automobile “craze”, 104, 105 - - Otto, inventor of gas engine, 69, 113 - - Output of automobile makers, how planned, 41 - - - Packard Motor Car Co., 95, 193, 227, 238 - - Paige-Detroit Motor Car Co., 96, 193, 227 - - Panhard, French maker of gasoline cars, 72, 78 - - Pecqueur, discoverer of principle of “differential”, 62, 63, 77 - - Peerless Motor Car Co., 95, 181, 187, 227 - - Percentage gain automobile production 1915 over 1914, 28 - - Percentage gain automobile production 1916 over 1915, 28 - - Per cent of value added by manufacture to automobiles, 82 - - Period of automobile industry’s greatest development in the United - States, 76 - - Perlman Rim Corporation, 183, 189, 197, 198 - - Peugeot, French maker of gasoline cars, 72, 78 - - Pierce-Arrow Motor Car Co., 95, 181, 187, 195, 197, 227 - - Pope Manufacturing Co., 108, 182, 188 - - Portage Rubber Co., 193 - - Premier Motor Corporation, 95, 228 - - Present trend of automobile, accessories and tire securities, 205, - 206, 228 - - Princess Motor Car Corporation, 183, 189, 228 - - Prospects when war ends for automobile industry, 47, 48 - - Pullman Motor Car Co., 95, 228 - - - Quantity production of automobiles, 41, 43, 92, 98, 101 - - - Rate of growth of automobile production and registration compared - with population, 208 - - Ratio of voting men to each registered automobile in United States, - 210, 211 - - “Rauch & Lang” automobile, 95, 228 - - Regal Motor Car Co., 96, 228 - - Registration of automobiles; increase since 1906, 174 - - Reliability contests; value of, 34, 35, 36 - - Reo Motor Car Co., 96, 193, 228, 239 - - Republic Motor Truck Co., 181, 187, 189, 195, 239 - - Republic Rubber Co., 193 - - Retail sales of motor vehicles in 1916, 28 - - Riker, builder of steam cars, 78, 115, 118, 239 - - Rims, demountable, 123 - - Roper, S. H., builder of first modern steam car in United States, 70 - - Rubber Goods Manufacturing Co., 178, 180, 190 - - Ryan, Thomas F., early automobile capitalist, 108 - - - Sampson, 201 - - Saturation, point of, not imminent, 31, 145, 146, 151, 176, 209, 214 - - Saxon Motors Co., 96, 178, 180, 183, 189, 190, 228 - - Scripps-Booth Corporation, 96, 181, 187, 228 - - Securities, leading examples of prices, terms and promotion plans on - which they were put out, 195-200 - - Securities, trading in, Cleveland Stock Exchange, 193 - - Securities, trading in, Detroit Stock Exchange, 193 - - Selden, Geo. B., first patentor of gasoline motor, 65, 66, 67, 68, - 69, 77, 104, 114 - - Selden “patent”, 37, 104, 107, 108, 109, 110, 111, 112, 113, 114 - - Self-starter, the, 44, 45, 122 - - Serpollet, made use of dry steam possible, 73, 77 - - Sliding transmission, 123 - - Society of Automotive Engineers, 44, 135 - - Smith Motor Truck Co., 181, 187 - - Spark plug, chambered, 123 - - Springfield Body Co., 181, 187 - - Standardization of manufacture of automobiles, 82, 97, 99, 100, 135, - 136 - - Standard Motor Co., 181, 187, 239 - - Stanley, builder of steam cars, 78, 118, 119, 228, 240 - - Stearns, B. F. Co., 95, 115, 195, 229 - - Stocks of automobile companies; when they became known in the - legitimate market, 173 - - Stoddard-Dayton, 201 - - Stromberg Carburetor Co., 181, 187 - - Studebaker Corporation, 95, 178, 180, 182, 188, 190, 193, 202, 205, - 229, 240 - - Stutz Motor Car Co., 96, 178, 180, 183, 189, 190, 229 - - Supremacy of United States in automobile industry, 79, 80, 81, 82, 102 - - Swinehart Tire & Rubber Co., 193 - - - Thomas, E. R., Motor Car Co., 95, 115, 229, 240 - - Time payment plan in buying automobiles, 40, 41 - - Time required to develop automobile, 49 - - Times Square Auto Supply Co., 183, 189 - - Tires, rubber; history of, 74, 120, 121, 122, 140 - - Tires, solid, 123 - - Tractors, economical value and future, 147, 148, 149 - - Transue & Williams Steel Forging Co., 197, 199 - - Trevithick, Richard, early English automobile maker, 56, 57, 58, 77 - - Tungsten, value in automobile construction, 129 - - - United Alloy Steel Corporation, 197, 198, 199 - - United Motors Co., 182, 187, 205, 240 - - United States Motors Co., 182, 188, 201, 240 - - United States Rubber Co., 178, 180, 190, 200 - - Universal Motor Co., 183, 189 - - - Value of automobiles produced 1899 to 1916, 139 - - Value of automobiles produced 1907 to 1909, 34 - - Value of motor trucks produced in 1916, 28 - - Value of passenger cars produced in 1916, 28 - - Vanadium; value in automobile construction, 129 - - Velie Motors Corporation, 96, 229 - - - War orders for automobile trucks, 1913-14, 47 - - War orders for automobile trucks, 1914-15, 47 - - War use of trucks; value in warfare, 169-170 - - Watt, James, inventor of steam engine, 51 - - When early automobile had a “vogue” in England, 63 - - When French began selling automobiles in quantity, 78 - - White, inventor of generator for steam cars, 77, 78, 95, 118, 119 - - White Motor Co., 95, 178, 180, 183, 189, 190, 193, 229, 241 - - Whitney, William O., early automobile capitalist, 108 - - Why early English automobiles failed, 64 - - Why gasoline cars are preferred, 118 - - Widener, P. A. B., early automobile capitalist, 108 - - Willys-Overland Co., 42, 43, 81, 95, 115, 178, 180, 182, 188, 190, - 196, 227, 229 - - Winton, Alexander, sold first American gasoline car, 76, 78, 93, 94, - 95, 115 - - Winton Co., 195, 229 - - Women as auto owners and drivers, 45, 46, 123 - - - Year automobile industry entered “billion dollar class”, 27 - - Year of start of automobile business as a “real” industry, 33 - - -*** END OF THE PROJECT GUTENBERG EBOOK STORY OF THE AUTOMOBILE *** - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the -United States without permission and without paying copyright -royalties. 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