THE OMAHA SUNDAY BEE: SEPTEMBER 10. 1920.
3 C
Bankers to
Give Auto
Credit O.K.
'Condition of Industry Vastly
Changed Since Pioneering
Stage of a Few Years
Ago.
Business Is Stabilized
By JOHN W. PRENTISS.
(Reprinted from The Spur, July IS,
Five years ago one of the biggest
hanks in New York refused to ac
cept a well-known motor stock as
collateral in an ordinary call loan.
A tew weeks ago the greatest bank
ing house in the world "became as
sociated with the General Motors
company as its bankers. What has
caused this transformation in the at
titude of the banker toward the au
tomobile industry? Obviously, it
has been the realization on the nart
of the banker in the meantime of the
fact that ha had greatly underesti
mated the strength and the qualities
of permanency inherent in the motor
industry which make it today, for
instance, second only to the iron and
steel industry in size. But more sne
cifically it is due to such facts, for
instance, as that the ery company
wnose securities were"Tiot acceptable
as banking collateral five years ago
has since that time distributed in
cash dividends more than $55,000,000,
all paiAout of earnings, and has re
invested in its business, also out of
earnings, twice that amount, until
today the value of its gross annual
volume of business is greater than
the gross business of any railroad
system in the world.
Financiers Were Too Slow.
1 he average banker is slow to
change his opinions and his mode of
life. That is perhaps one of the
reasons why most bankers arc called
conservative. 'That is also perhaps
the reason whv 10 years ago every
one in Wall Street did not appre
ciate that transportation by means
of gas engines was a coining means
of transportation and that transpor
tation by steam engines was going
to be less nrofitahlc in the future on
account 'of the inroad made by the
pas engine. At anv rate the banker
had no confidence in the gas engine
proposition and retained a good deal
of his old-time confidence in the
steam engine proposition. The re
sult has been that the so-called Wall
Street community (our national in
vesting public) has lost mohey in
railroad stocks and bonds while the
clement which saw the future in the
motor car and which lived in the
middle west instead of on Manhat
tan island made a lpt of money in
motor car securities.
Automobile a Staple Business.
Ten yearsrl ago our Wall Street
banker hadsa' motor car which he
- looked upon wore or less as an ex
pensive fad. Today he finds that he
must nots'only. have one himself, but
that his wife or his daughter has one.
that his butcher has one, that his
grower has one and that he is abso
lutely dependent upon the motor car.
He can. go nowhere without the dan
ger of being run over by a motor
car. As a matter of fact, he de
pends upon it almost entirely for
his daily bread and his daily trans
portation. In spite of this fact there
arc) a good many people in the bank
ing community who seem to think
that the motor car industry is not
a staole and permanent business. A
well-known banker in New'York the
other-day said to one of his best de
positors. "How long is yoHr motor
car business going to last?" The
motor car man replied, "How long
is your banking business going to
last?" and added, "Is this bank go
ing to be irt business next vear?"
Whereupon the highly indignant
banker allowed that he was and the
motor car man said, "So is our com-
' pany."
Trucks and Cars Essential.
' We hear a good deal of talk in the
newspapers -jjiese "days of tight
money that loans to automobile
companies are going to be restricted
on the theory that the automobile is
a non-essential. Tn the first place,
very few automobile companies bor
row much money in the second
?lace the car is not a non-essential,
t is distinctly essential. The word
"pleasure car" is a misnomer there
really is no such thing today. Twenty-five,,
ytars ago the farmer had a
horse and buggy to drive him to
town. Today he has a so-called pleas
ure car which costs less to run than
the horse and buggy and which does
10 .times the work. '
' 30,000,000 Cars for U. S.
Much discussion has been heard
for a good many years about the
saturation point in the automobile
business, but no saturation point will
probably be een until there are at
least 30,000,000 automobiles in the
world and today the United States
controls the markets of the world
for motor cars. This is the only
country which has learned how to
produce in quantity, to standardife
its output and therefore to produce
cheapjy.
In the United States today there
are 7.800,000 (estimated) automo
biles, and trucks in use; in England
there are 025,000 (estimated) auto
mobiles in use; in France there are
.280,000 (estimated) automobiles in
use, and in all Europe there are
1.000,000 (estimated) automobiles in
use. ' The rate of consumption in
the United States is going to require
Si Jcfcst t million cars and trucks a
year for the next five years. What
the demand for the rest of the world
will be it is hard to foretell, but it
is a well-known fact that a medium
priced American automobile can be
sold instantaneously in any part of
the world today and in many for
eign countries it brings a nigner
Erice in American dollars than it
rings in this country. Further
more, the averagp life of an automo
bile is only about five years.
Ford's Dqnbting Thomases.
A few stories illustrative of the
point of view of motor industry lead
ers with respect to the so-called "sat
uration point" in the motor indus
try are worth repeating. We recall,
for instance, the conference which
Henry Ford held with his subdrdi
' aatea tgmt years ago to discuss
By CLARK G. POWELL.
Secretary of The Omaha Automo
bile Trade Association.
Whyis the automobile put in the
nonessential class by the Tenth Fed
eral Reserve Bank of Kansas City,
is the question which thousands of
automobile, truck and tire dealers
are asking their bankers.
Apparently there is a lack of un
derstanding between our financiers
and the men who are using automo
biles in their daily ..tasks as it would
seem that the automobile and the
truck provide a real solution to our
transportation difficulties.
No doubt there is ample justifica
tion for putting the damper on spec
ulation and profiteering, but why
any sane man should choose to class
transportation with non-essentials is
beyond explanation.
Some time ago member banks in
the Tenth Federal Reserve district
were informed that the Federal Re
serve bank at Kansas City would
discontinue to rediscount automo
bile paper and this action has vir
tually forced many bankers to re
fuse to loan money for the purchase
of automobiles, trucks, and acces
sories. Industry Handicapped.
Although pressure has been
brought to bear upon the situation
from various angles, supported by
indisputable evidence that the auto
mobile and truck are vital factors in
our very existence, the Tenth Feder
al Reserve district has turned a deaf
ear. In this district they have se
verely handicapped the second larg
est industry in the United States, the
automobile industry and its kindred
industries.
Accordii'g to interviews with var
ious bankers and others who have
studied the situation, some action
on the part of the Federal Reserve
tank was necessary to stop spec
ulation "and profiteering. This dis
trict has put into effect a graduated
interest scale somewhat sinilarto
that of the Bank of England. This
limits the borrowing power of the
banks by raising the interest rate
when a stipulated credit rating is
exceeded. The theory is that this
action will force the banks who are
ovcrloaned to reduce their loans
plans for an output of 25,000 cars,
rtis young men, as he called them.
rose in revolt at the suggestion: told
Mr. rord that he could not sell 2a.
000 cars in any one year', -and that
even if he could, he could not obtain
the steel to manufacture them, to
which this man of wonderful vision
replied as follows: "Boys, you are
all wrong. I can take a map of
the United States, cut it into four
sections, sell 100,000 cars in each sec
tion and only scratch the surface."
How well Mr. Ford prophesied is
best measured by the fact that the
Ford company will sell this year
more than 1,000,000 cars, and the
end is not there.
Durant's Answer.
Similarly. WilManl C. Durant. the
guiding genius of the wonderful
General Motors organization, was
asked some five years ago when the
saturation point would be reached
in the automobile industry, and his
answer ' was approximately this:
"The saturation point in the automo
bile industry will be reached when
they stop growing boys." Mr. Du
rant's meaning, of course, was that
when generations stopped succeeding
one another the uses of automobiles
would diminish, but while population
continued to increase the demand
for automobiles would continue simi
larly. Relieved Congestion.
Recently such things have been
common as sending a whole flotilla
of automobiles over the road in the
height of winter and sending fleets
of trucks to all narts of the middle
west to move their own feul and
iron- and steel, which would be im
possible in any other industry: but
the automobile men were able to do
it and thus maintained production
in the early part of this year when
other industries were practically sus
pended. The writer, for instance,
saw dealers from Richmond. Va.
and Dallas, Tex., driving three and
five cars over the road' from Cleve
land, O., last spring. Thousands of
miles of inconvenience for only three
cars, and yet there is talk of satura
tion in the motor industry 1
Need Greater Production.
"Not until the rest of the world has
as many cars as the United States
has do automobile men believe they
need concern themselves with any
thing more than temporary abate
ments in the demand for cars and
whenv and if that condition, is ever
reached, there will be a demand, as
indicated above, for replacements
alone of, from 2.500.000 to -4,000,000
cars a year, which is from two to
four times as many cys as have ever
been turned out in a single year.
The day is rapidly arriving when
this great industry, which was looked
upoir with suspicion by so many of
the banking fraternity, is coming
into its own.
Cole Aero Eight
Stock Car Sets New
r l r l n
d
UiDan opeea recor
Although the Cole Motor Car Co.,
in common with most manufacturers
of high-grade motor cars, long ago
withdrew from the field of track
racing, indivdual jCole owners arc
tolling up some remarkable victories
in stock car events in various parts
of the world.
A few weeks ago the Cole Motor
Car Co. received word from Havana.
Cuba, to the effect that Roland
Markham, driving a stock Cole
Aero-Eight at Oriental park there,
set a new stock car mark for Cuban
drivers by going a 10-mile course in
9 minutes and 10. seconds, or at,
the rate of 65,45 miles per hour.
Markham's latest victory is the
second in which, with an Aero
Eight, he has beaten the field of
fast cars and established a new Cu
ban record. In a 30-mile race on
the same track a little over a year
ago, Markham's Cole Aero-Eight
traveled the 30 miles in 29 minutes
and 15 seconds. 1
Markham's newest Cuban record!
was esiaDiisnea on a one-miie dirt
track used ordinarily for horse rac
ing. The Cole entry was a regu
lar stock chassis.
English motorists are now paying
80 cents a galfen for gasoline.
Dealers' View
and it is apparently accomplishing
its purpose m this respect.
Transportation Essential.
But this still leaves the all-important
question unanswered. Why
should the farmer be forced to find
other means of going to and from
his farm and of hauling grain, cat
tle, and nrnHiire tn market. Surely
we cannot deny the fact that the
automobile and truck provide faster
and cheaper transportation than the
horse-drawn vehicle.
If we accept the motor vehicle
as a time-saver and an expense re
ducer, why should we discourage
its sale? Would it not be better
to even make an exception on auto
mobile paper which would favor that
industry?
If the action of the Federal Re
serve bank is aimed at the food
speculator, the profiteering land
lord, the man who is floating stock
issues, the man who is speculating
on ridiculous real estate values and
numerous others who come, under
this class, why don't we cinch our
case? It-would be very simple.
We might rule that the banks, re
gardless of whether they were over
loaned, could borrow and loan, at
the normal rate of interest, money
to be used to move grain, to feed
cattle, to furnish transportation.
This would tend to stop speculation
without harming necessary progress.
Necessity Is Proved.
Numerous and varied facts have
been supplied by those connected
with the automobile industry and
broad-minded financial experts,
which prove beyond doubt the ne
cessity for motor transportation.
Some of this data is submitted here
with. The National Automobile Cham
ber of Commerce of New York City
made an investigation recently,
which developed the fact that farm
ers, doctors, salesmen, lawyers, con
tractors, real estate and insurance
men were the largest buyers of
motor cars. Picture these man with
out automobiles today. Their ef
ficiency would be cut inhalf.
This same investigation developed
the following facts
(Compiled from replies to question
cards sent to car owners.)
37 per cent of car owners im
prove their living conditions be
cause of automobile.
Farmers May Get
Wheat Straw Fuel
Department of Agriculture
To Evolve Plant for' Distil
. ling Gasoline at Home.
"If present experiments being un
dertaken by the Department of Agri
culture terminate satisfactorily, it
won't be many years before every
farmer will have on his farrna? full
fledged gasoline plant capable of dis-
stjilling from wheat straw all the fuel
he will require for his automobiles
and farm machinery," says J. R.
O'Neal of the Nebraska Oldsmobilc
Co., Omaha. ,. 1
"According to the Department of
Agriculture there is gas enough in a
ton of wheat straw to equal 40 gal
lons of gasoline. There is enough
wln-at straw going to waste west
of the Mississippi river to equal at
this rate one-fifth the driving power
of all gasoline now manufactured.
Experiments so far have extended
only to wheat straw. If cornstalks.
which are richer jn carbon than
wheat straw, can be used, there are
enough cornstalks- wasted- in the
United States to more than equal
all the gasoline now produced. There
are also possibilities in sugar cane
and the refuse of the cotton plant. .
"Wheat straw when put through
the same process used to make gas
out of soft coal, produces a gas
which is almost identical with illti
mirating gas, and during the war all
the London omnibusses wefe suc
cessfully operated on illuminating
gas, as well as a great many of the
lorries at the front. Automobiles
have been run with wheat straw gas
as the rriotive power. This has been
accomplished by carrying the gas in
a bag.
. "The problem before the depart
ment is the liquifying of the gas
so that it can be used from an or
dinary automobile tank. They are
also hard at work on a retort ar-d
pas container which will be within
the means of the ordinary farrrlcr
who has an automobile and other
gasoline-driven machinery.
Lexington Winner
In Economy Drive
Against Big Field
"We beat 'em again," is the word
just received by the local Lexington
dealer, when the Minute-Man Six
hung up another record to its
credit.
This time it is for economy, and
won over a field of 12 contenders
with a showing of 24J4 miles to the
gallon. The record made at Nor
folk, Va., upon a heavy track,
churned into mud as cars of all
niakef and kinds struggled for su
premacy. In the final showing the Lexing
ton entry swung easily into first
place. This victory for economy
was made over cars light and heavy.
and ' all classes and descriptions.
many of the finest cars in America
being represented.
Other recent Lexington victories
were made when a Lexington won
a $5,000 New York open challenge
tor stock cars, covering gasoline
economy, acceleration or get
away," fast speed on high gear, low
speed on high gear, high gear pow
er on hills, and fast high gear pow
er on hills. '
One hundred and nine cars ac
cepted the challenge and a Lexing
ton Minute-Man Six stock car de
feated all of the cohtestine cars on
a I points.
Again, when two Lexingtons fin
ished first and second in the Pike's
Peak hill-climb classic in face of a
blinding snow storm, they won a
world's victory over cars of all
makes and kinds, some of them soe-
cially built. The two Lexington
winners were stock cars with the
exception of their special bodies.
Combined federal and states ex
penditures for road building may
reach a total . of $250,000,000 this
of Credit
Farmers own one-third of the ;c . ears In the country.
Seventy-eight per cctit of their r liVije is for business, and
a recent canvass of fwra owners i-howed that they had increased
their productivity 68 per cent through use of the automobile.
90 per cent of all cars are
used mpre or less for business.
60 per cent of mileage of ave
rage car mileage and 78. per
cent of farmer car mileage ij
for business.
. 34 per cent of average mileage
is instead of trolley or railroad,
or where there is no other means
of communication.
Average car owner adds 57
per cent to his output through
use of automobile; larmer adds
68 per cent to his efficiency.
Net Gain of 3,000,000 Men.
The use of the passenger car, ac
cordingly, has meant a net gain to
industry of 3.000.000 men. There
are rhore than 7,000,000 automobile
owners in the country, each increas
ing his efficiency 56.7 per cent
through the use of the car, making
an addition to the business pro
ductivity of the country in excess
of 3,900',000 workers. As there are
between 800,000 and 900,000 men
T
Open Service School at
LaFayette Factories
"Motorists who have become firm
believers in the economy of high
quality and consequently high priced
cars have learned the importance of
proper lubrication and expert me
chanical inspection," asserts .Ralph
Hitchcock of the LaFayette-Hay-ward
Co. "In order to have every La
Favette distributor's service, station
under the direction of an expert who
knows the LaFayette as well as
the makers, a post-graduate service
school has been opened at the plant.
"Men who have had years of ex
perience on high-grade cars, who
know how to meet and work for
owners of such automobiles, are ad
mitted from the cities where dis
tributors are located. Engine, trans
mission and axle1 are completely
torn down and built up by the men,
under the direction of the designer
and other engineers. D. McCall
White, creator of the LaFayette,
lectures on the engineering features
of the car; D. C. Selheimer, works
manager, talks on production meth
ods; ignition and carburetion are ex
plained in detail by specialists; then
follow long rides in a LaFayette car
at varying speeds and over all sorts
of road.
"W, A. House r. technical manager
of the plant, is in direct charge of
the school while F. E.Cooper, super
intendent of final inspection, is lead
ing instructor.
"Between serving in class room
and personally testing every La
Fayette that conies off the assembly
floor, D. McCall White is kept busv.
'Personal test drives' are rriade
both by him and his co-producer, E.
C. Howard." j
Weak Valve Springs.
Weakening of the springs which
close the valves is a common cause
of faulty engine operation. When
ever the valves are taken out the
sorings should be examined to see
that they are al) of the same length,
or rather that all of the inlet set
are of the same length and all of
the exhaust, as the exhaust springs
Will probably be a little longer than
the others. If one spring is shorter
than the others in its set it should
be stretched or else a metal plate
must be put under it to bring tension
up to equ&lity with its fellows.
Cadillac of Vintage of 1905 Here .
A 1905 Cadillac single-cylinder
motor car, which has not been rc
paiifted since it was .built, is on dis
Situation
:t"X Q20
1
manufacturing and selling passen
ger cars, parts and accessories, there
remains a net gain of more than
3,000,000, men. If one were to add
the productive efficiency of the 750.
(100 motor trucks now in use a still
greater gain would be shown.
Farmer Greatest Gainer.
The largest gain in productivity
has been in (farm life. There arc
2,367,000 farmers owning cars. The
answers from farmers reported 68
per cent increase in productivity of
the owner or an addition equivalent
of 1,600,000 hired men. n
Still another angle of the situation
is presented by the General Motors
Acceptance Corporation, the largest
exclusive automobile financing com
pany in the country. This corpora
tion has found motor transportation
one of the safest things to deal with.
Many of us might gain much knowl
edge from looking' over their rec
ords. This corporation is doing
business at the rate of $100,000,000
a year and they have found the fol-
Why Auto Tires Do
Not Require Oiling
Fabric Interwoven With Rub
ber Forms Springy Body
With Durable Qualities.
Why does the motorist never
oil his tires? Road wear, thafing
and constant flexing would seem to
demand oiling. Automobile bear
ings and all working parts of a
car are oiled against friction. Why
no oil for a tire? This question is
often asked by motorists,- asserts
Robert C. Burlan, manager of the
Omaha branch of the Miller Rubber
Co. Here is the answer:
"The fabric carcass of the tire
is much like the human body. For
one thing it is self-lubricating dur
ing its life. The breaker strip is its
backbone. Plies of fabrics are the
ribs and the rubber between them,
like muscles, hold all parts to
gether, lhe fabrics
strength and shape,
is the lubricant.
carcass gives
Friction gum
Core Must be Taken.
"Like the human body the tire
may look good on the outside, but
be 'shot' inside. Its greatest enemy
is under-inflation. Abusive treat
ment causes so much bending, flex
ing and chafing, that the carcass, in
spite of its enormous strength, is
unable eventually to bear-up and
is broken and torn.
"In the fabric tire, the carcass is
constructed of interwoven strauds
of cotton. Fabric is built up layer
upon layer, each thoroughly impreg
nated with rubber. The number of
these plies, each of which is cush
ioned, depends upon the size of the
casing. The earliest successful tire
was a fabric, according to the Mil
ler Rubber Co., Akron, O.
Bult for Endurance.
"The cord carcass is constructed
of layers of cords which run paral
lel in each ply and We not inter
woven. The number of plies, each
of which is run at right angles to
the other, varies with the size of the
tire. So strong are the carcasses
that they are able to starrd blows
that mount well up into the tons. '
"When the motorist takes care of
i
play in the salesroom of the J. H.
Hansen Cadillac company. Mr.
Hansen has called his exhibition,
"The Uaxt'ef Real Sport," recallifrg
1 ' '
In Nebraska
1
ofving things. to be true of the man
wno buys an automobile "on time."
The figures below are the average
for the six months between April
1. and September 30, 1919:
Avri( Ace of Purchaser 85
Avar-tite Car Coat 11.044
Average Not $9l
Average Inccma (Month) ....... S'JT B
Average Monthly Payment t9
Average Per Cent Payment to In
come 20.7 pots, cent
Average Per Cent Note to I
Car t.l Per Cent
Average Real Estate Owned. .. .16, S32
This would indicate that these
men are well able to buy automo
biles and they are certainly entitled
to credit in buying transportation as
much as in buying a house to live in.
Something Wrong.
Evidently there is something
wrong with our scheme in this dis
trict. Few, if any other districts,
have found it necessary to curb mo
tor transportation and why an agri
cultural district should be chosen to
try out such a plan is beyond con
ception. Our financiers tell us there
is more money in the United States
todav than there has ever been. Ne
braska is reported to have a 117.6
per cent crop compared with the av
erage for the last 10 years, Iowa is
reported to have a 107.2 per cent
crop. Other states in this section
have had bumper crops. Our secur
ity certainly is -gilt edge. The only
thing which stands in our way is the
lack of transportation, both passen
ger and freight, but our federal re
serve system sees fit to curb the
only solution.
If pur bankers are pinched why
docsn t our federal reserve system
come to the rescue? Our farmers
have bumper crops. The security
is gilt edge and the Federal Re
serve bank at Kansas City has the
power to both issue and borrow
money.
Hardship on Banks.
1 According to numerous distribu
ters, the ruling regarding automobile
paper is forcing a real hardship on
some of the smaller banks, it is
forcing the withdrawal of money
on time deposit. Some individuals
are finding it very profitable to loan
the money which they have on de
posit drawing 4 per cent interest to
finance the sale of automobiles.
Most of these loans are secured by
notes from farmers bearing 6-7-7-9
per cent interest.
his life, lie is helping the carcass
to perform its duties properly. The
tread will give him maximum wear;
lhe side wall will protect from the
elements; the beads anchor the car
cass to the rim, and the breaker
strip will break the force of the
blows."
Truck Agent Sells Sale
Contracts to Farmers
"During a recent trip through the
middle west and southwest, visiting
our distributors and dealers," asserts
J. W. Kenneth of the Indiana Truck
corporation, 'I picked up some valu
able information as to the scheme
employed by one of our big, alive
distributors in a mid-west city in
financing paper on the resale of
trucks.
"The officers of the organization!
get out into the rural farming sec
tions, visit the small towns that are
surrounded by rich farms and where
the farmer has money. I hey get
acquainted with the banker in these
villages and learn of the fellows who
have money and are not depositing
it in the banks. Any number of
farmers far out from the cities are
afraid to deoosit their money in
banks, fearing additional taxation by
state or government, so they have
scads of cash on hand at home. This
distributor shows the farmer a
bunch of notes bearing 8 per cent
interest that fall due from month to
month; they show him that a sub
stantial payment has been made on
the truck by the purchaser, which
shows good faith, then the distrib
utor allows the farmer an additional
discount of 2 per cent, and he buys
lhe notes for cash."
Vacuum Tank Needs Draining
At the bottom of the vacuum
tanks, which are now used on so
many cars to secure proper fuel feed,
there is located a drain cock. Many
owners seem to think this is some
sort of an ornament, but it should
be ouencd at intervals, once a week
or so. Generally a little water and
possibly some rust will flow out be-
tore gasoline begins to come, in
many cases it will be necessary to
insert a bit of wire to clean out the
drain cock of an accumulation (of
foreign matter. If this latter is per
mitted to remain long enough it will
work its way back into the carbure
tor and make trouble.
the days when it was real sport to
ride a high-wheeled bicycle, drive a
beautiful carriage or one of the first
automobiles made.
I he following reprint trom Motor)
World of August 25, 1920, illustrates
just what is happening to some of
the smaller banks.
At least one Iowa ' automotive
dealer has found a way of getting
co-operation from banks in these
times of tight money. His methods,
though drastic, were highly effective.
For obvious reasons the dealer's
name is not given, bat he is one
of the pioneers in the motor car
business in a central Iowa town of
about 4,000 people.
When his Iiome town bankers be
gan to tighten up this dealer went
to the banker with whom he had
always done business and asked for
assistance for hitnself and his cus
tomers. It was "not forthcoming.
The dealer had lived in the town
for years and had a pretty good
idea of the citizens who were de
positors in this particular bank. He
took time to write out a list of
men whom he knew to have savings
accounts in this hank. Then he be
gan' to approach them one by one.
His conversation ran something
like this:
"You have a few hundred dollars
on deposit at the Blank bank, haven't
you?"
"Ye$."
"It's drawing 4 per cent interest?"
"Yes."
"1 have some good farmers' notes
here on tractors and cars. They'll
pay you 8 per cent and I will per
sonally guarantee every note. Don't
you want to double your returns?"
The depositors were business men.
They knew the dealer and had con
fidence in him. They also knew the
notes were Al and they saw the
light.
They wanted some of the 8 per
cent money.
Two or three days later the banker
began to feel the effects.
Finally after a good many savings
deposits had been removed he asked
the dealer to come to his office. Then
he asked for an explanation of what
was going on.
The dealer's answer was short and
to the point.
"Don't do any more of this busi
ness with my depositors," said the
banker. "Come in and I will handle
your paper as usual."
And in at least one town the war
was over.
Ford Buys Railway
And A Coal Mine
Railroad Line Direct to Coal
Fields to Be Given New
Name Buys Forest.
i I
During the last two months,
Henry Ford and the Ford Motor
Co. have purchased the Detroit,
Toledo and Ironton -jfilroad, a
400,000 acre timber tract in northern
Michigan, and a coal mine in Ken
tucky. And it is reported that other
purchases are under consideration.
Two thousand railroad workers
are automatically , made "Ford
men." In the near future they will
be permitted to share in the invest
ment opportunity with the thousands
of other Ford employes. The mini
mum wage system and bonus dis
tribution also will pply to the rail
road men.
The Detroit, Toledo and Irontown
railroad will soon be known by an
other name. Avoiding congested
centers, the railway is a direct line
to the coal fields of southern Ohio
and the West Virginia and Ken-
tucky boundaries, bolid coal trains
jnay be routed through to Detroit
without delay or interference. .
Timber from virgin forests of the
Upper Peninsula of Michigan will
be used to furnish lumber for Ford
automolile bodies and other require
ments. Another link added to the
chain of Ford industries is the Ford
saw mill, located just outside of
Detroit.
These acquisitions are wonderful
links in the chain of Ford industries.
Fewer outside-organizations are be
ing depended upon year by year.
Already work on the Ford car and
Fordson tractor commences with the
ore in Ford furnaces. Soon the coal
will be transported from mines on a
Ford railroad, and soon the timber
will be cut from Ford virgin forests.
Including these new additions, tie
direct Ford payrool now contains
approximately 100,00 names.
1
Lubrication Tabled
The followine table may be ac
cepted as generally accurate in its
recommendations for lubrication at
tentions to the various parts of the
mechanism, though there wjl be
variations in (regard to certain cars
and models.
Daily Lubrication.
Clutch collar and thrust bearing:
grease or 'graphite.
Spring bolts: grease or graphite.
Drag link joints or steering gear:
grease or graphite.
lie rod and king bolts: cylinder
oil.
Steering gear case: grease or
graphite.
Brake levers and clevises: cylin
der oil.
Commutator: cylinder oil (few
drops).
."Steering post: cylinder oil.
Brake shaft and pedal bearing:
cylinder oil.
Lubrication Every 500 Miles.
Spring leaves: graphite or heavy
oil.
Crankcase: cylinder oil, drain,
flush out and refill.
Magneto distributer: drop of cyl
inder oil in holes. i
Gearchse: oil, light in winter and
heavy in summer.
Lubrication Every 1,000 Miles.
Wheel bearings: grease or graph
ite after thorough cleaning.
Universals: "grease or graphite.
Torsion tube, radius rods and
similar parts: grease or graphite.
uearcase: drain, flush with kero
sene and retill with oil, light tor
winter and heavier for summer.
Broken Chains.
When the cross pieces of tlie anti
skid ,chajn break, so that th chain
strikes against the fender in pass
ing, it is poor practise to wire the
broken pieces across the tire, as the
wire will quickly be worti through.
By wiring under the felloe a more
permanent repair will be 'secured.
Passengef
AutoComes
Into Favor
Term "Pleasure Car" a Mis
nomer In Day When Pas
senger Vehicles Are
Productive Force. v
Rapid ForWard Strides
By CHARLES CLIFTON.
President,' National Automobile
Chamber of Commerce
The greatest single new productive
force in the development othe ynit
ed States in the past 20 years, ha,s
been the automobile.
Scarcely two decades ago, high
ways transportation the world over
was no faster, hardly more efficient,
than the caravans which pushed their
way across the desert to Babylon
2,000 years before. The introduction
of the passenger car has wrought
a revolution in travel almost over
night and the changes which are to
day being brought about through the
ever broadening use of the motor ve
hicle, have already geared a world to
a new efficiency of commerce, a new
standard of life, a new philosophy of
though?.
As the telephone brought com
munities into closer contact mental
ly, so the automobile is serving to
bind communities together physical
ly. As the railroad made possible
long distance communication, so the
automobile has eliminated the dis
tance between the dweller in the city
and in the country.
In every field of action whether it
be. commercial, scientific, covern-
mental, sociological, the use of the
p.isscnger autoniobife plays its part
and already the giant power it wields
is reflected in a stimulated national
life
Time, that ever vital factor, has
met its master. Mileage has
succumed and modern industry finds
the motor vehicle an indispensable
tool in its complex equipment. Even
our merchant marine finds new lad
ings brought to its docks in foreign
fields through the steady develop
ment of virgin industries abroad by'
this new unit of transportation. .
Opens New Markets.
Nor does the motor vehicle's use
alone reflect its influence on the
world's trade. As the passenger car
ha.' come into more general use, as
city after city, state after state,
snow a unuorm increase in tne num
ber of passenger cars upon their
highways, a new market of bound
less future has been opened up to
the industries of the world. The
thousands of men employed in trie
industry represent tremendous buy
ing power which calls for, the pro
duce of the farm, the loom, the fac
tory, for the new machines which
are ever in the course of production,
steel, leather, lumber, rubber, a thou
sand other commodities. New life
has been infused into the veins of
American industry' through this new
demand.
Productive Efficiency Increased.
As the manufacture of the pas
senger car has broadened the market
of other producers it has also in
creased th productive i efficiency of
all of its users.
The truth of these statements is
emphatically demonstrated by an
swers to thousands of questionnaires
directed to passenger car users of
the United States by the National
A J. 11 V-M m jx.
nutomoone i-namDer ot commerce.
The replies received indicate that
of all the passenger cars about 90
per cent ar used gentrally for busi
ness, while of the few qwners whose
chief purpose in the purchase a
machine is recreation, half use their
cars instead of the trolley car .while
SO per cent. of the remainder state
that the passenger car has solved
their housing problem by permitting
them to take homes farther away
from the business district. A typi
cal example , of recreational use is
Ithat of a farmer 14 miles from town
nvhose family can now enjoy com-
iiiuuuy apa social me.
Man Power Multiplied.
Of the actual mileage of ears on
which figures -were obtained about
60 percent-was for strictly business
purposes not including use of cars in
place of trolley or railroads or for
shopping. The average increase in
business productivity due to motor
cars was 56.7 per cent Translated
into working capacity this means
that the 6,800,000 cars in daily use in
America add every day the equiva
lent of over 3,800,000 workers to the
nation's productive forces. This is
equal to nearly a sixth of all of the
wage earners in America. So the
automobile industry has increased
America's man power by one-sixth at
a time when man power . is the
world's most serious problem.
To carry it one step further, since
the number of men employed in the
sales and manufacture of passenger
cars, including the making of parts
and accessories is about 800,000. the
industry can fairly claim to have
contributed to the nation four tinns
as much as ft has cost in man-power..
That this ratio is approximately
correct is shown by arriving at it
from another basis of reasoning. The
number, of passenger vehicles pro
duced, last year was 1,650,000, or the
equivalent in- working capacity of
more than 935,550 workers. The
rurrber pf men engaged ,in making
them was 232,000. Again the ratio
is four to one. Perhaps no other in
dustry can show such a tremendous
dividend in productive force as this.
Only the most advanced production
methods of American genuis make ,
is possible. . .'
Nation's Wealth Enhanced.
is ior ine aireci vaiue ot tne pas
senger car to the nation in dollars
and cents, any estimates which may
reasonably be made reach into fig
ures of a size which only "a world ac
customed to war nnauce could un
derstand. More than $1,000,000,000
fs devoted to the' manufacture of ve
hicles alone. The capital invested?
in the manufacture of parts, acces
sories and tires will total about twice
as much. Since the nation's wealth
is some $250,000,000,000, the auto-,
mobile investment itself is less than
2 per cent, but it is in the effect
which the use of the car has wrought,
t hat its real part in the economic
(Contbiaed on P4c 1-C. L'tluma Od .