The Seattle Star Newspaper, February 3, 1923, Page 9

\ siapu ij 3 Hi iRee. IN BIG PLANTS Quantity Production Is Aid to Buyer, Says Expert BY A, R. ERSKINE President the Studebaker Corporation The manufacture of useful things im large quantities, which reduces the cost of their production, makes pos- sible the enjoyment by the mass of the people of many of the luxuries as well as the necessities of life Quantity production has greatly in- creased the number of employed per- mons, thus adding to the wages and buying power, of the people and pro- moting national prosperity and hap- Piness, If this ts a public service, then our quantity production indus- tres are great public servants. Quantity production may be applied to the manufacture of any article of common use Wherever efficiently ‘applied, It will inevitably reduce cost and thereby increase consumption. | The size and scope of financial re-| sources, plant facilities, and organiza- tion necessary to engage in quantity Just about the neatest bit of pleasure machinery that the Studebaker corporation has turned out in its enviable history is the classification in which Manager P. Sands, of Sands | more than half thé automobiles in| Motor Co., Seattle Studebaker representatives, places the new light-six, two-passenger, | Production depend upon the character | of the article to be produced. | The resources, organization and equipment for production of matches, | pins or chewing gum measure but a| fraction of those required for type-| writers, planos or automobiles, As automobiles are the most costly ar- ticles produced by industry for com- | mon use, Vast resources are requir for their manufacture in large quan- | tittes, It ts @ business involving scores of millions of dollars, great plant factli- | ties, large and efficient organizations. | Plant facilities, inéluding adequate | sanitary duildings, scientifically | equipped with machinery, fixtures, | Sigs, dies, tools, gauges, eto, cost) from $25,000,000 to $100,000,000 tm In- | dividual cases. Raw materials and/ operating supplies are purchased tn great quantities Labor operations are standardized, and workmen are specialists, The ablest engineers, metallurgista, chemists, production experts, inspectors, and executives) constitute the man power back of the machine, the organization and the product. Automobiles produced int quantities by such organizations are manufac- tured at minimum cost, because (a) the plant facilities are adequate for | the most complete and economical manufacture, (b) the raw materials are bought at the lowest possible | prices, (c) the labor is specialized and | efficient, and (4) the overhead ex- penses per car are reduced to the minimum. The “devouring monster” in pro- duction costs of motor cars Is over- Auto Mart Is Within In 1923, according to the Feb- | Other conditions remaining satis factory, this promises to be the most successful year, for both ma- ker and dealer, in the entire history of the automobile business. Approximately 1,650,000 passenger cars will pass their sixth year of service some time during the next 12 months, and under normal eco- nomic conditions must be replaced. This represents the largest replace- ment market which has been avail- able since the establishment of the automotive industry. ; St 209,000 cars will be required for what we may term “new own- ers” This estimated requirement will, of course, be modified by exist- ing industrial and agricultural con- ditions. It is estimated that 75,000 cars will go into the export trade, Adding these together, we Zind a de mand for approximately 2,525,000 passenger cars. In the commercial car field, the percentage of trucks needed for re- placement {s not quite bo large as in the passenger car field. Approx- imately 125,000 commercial cars will be replaced during the coming 12 months, if business conditions con- tinue on a fairly even keel. A do- mand for 135,000 trucks will be suf- JURORS MAY GO ON TRIAL Jurors who deliberately conceal their knowledge of cases going on trial until they retire to the jury room are in danger of perjury prose cutions, Prosecuting Attorney Mal- colm Douglas announced Saturday. Several cases recently have been In- fluenced by jurors who falled to truthfully answer questions put to them. ‘The announcement followed a com- plaint by jurors who tried Samuel and Eugene Kunz on an assault charge returned by a recent grand fury. The two were acquitted after one of the jurors told what he per- sonally knew about the case, altho the first vote stood eight to four for conviction. Trustee Takes Levinson Estate A state supreme court decision rendered Friday upholds a decision of the superior court here in the bankruptcy case of Joseph Levinson. ‘William A. Greene, trustee of Levin- son's estate, was awarded property valued at $110,000, held in the name of Mrs, Levinson. Greene showed that Mra, Rae Levinson had accumu- lated the estate immediately prior to and after her husband voluntarily declared himself a bankrupt, and contended that the assets belonged to Levinson’s estate for the benefit of his creditors. This contention was ‘upheld. Skidding around corners grinds the rubber off the tire treads, coupe-roads Saturday. head expenses, of which there are two kinds, namely, direct and indirect overheads Direct overheads which must be absorbed by the production, whether it ts large or small, cover the fixed expenses of maintaining the departments of the organization, such | as the administrative department, en- gineering department, specifications department, purchase departments, stores department, superintendents | department, inspection department, accounting department and shipping department, as well as insurance and | taxes. These direct overheads may easily amount to $3,000,000 per year in a big plant, If the production of the plant ts 20,000 cars, $150 is absorbed by this overhead in the cost of each car produced, whereas but $20 per car is absorbed If the production Is 150,- 000 carn. These direct overhead ox- penses of the manufacturing depart ment are duplicated In the admini: trative, sales and advertising depart-| ments after the product ts shipped from the plants, and tn addition to this the indirect overheads covering expenses which vary with volume of production, both of a manufacturing and commercial nature, must be tn- cluded im the final price of the prod- wet. It is tn overhead expenses, | therefore, that the greatest savings in cost are made by quantity produc- tion, and there are approximately 100 “planta” producing automobiles in this country, | fictent for the export trade. This! brings the total estimated require-| ments for 1923 to 275,000 commer. cial cars, making « total of 2,800,000 | Passenger cars and trucks, or Increase of about 10 per cent over last year’s production. j Of the estimated output of 2,525,000 passenger cars for 1923, Ford may be counted upon to turn out at least 1,150,000. The General Motors units should col- lectively build about 460,000 pas- senger cars. A selected group of other leaders, consisting of Durant, Dodge, Studebaker, Overland, Maxwell, Hudson-Es- eex, and Nash, should collective- ly turn out 725,000. This would leave @ total production of ap- Proximately 190,000 for all other manufacturers of passenger cars In business, It is expected that of the ears built in 1923, 34 per cent will sell/ for lesy than $500, 33 per cent will be in the $600 to $1,000 class, 19/ per cent in the $1,000 to $1,500, 7) Der cent in the $1,500 to $2,000 clans, | 3 per cent in the $2,000 to $2,500; class, and 4 per cent-in the class selling above $2,500. MOTOR GROWTH IS PHENOMENAL Seattle Dealer Gives Data | on Production “The magnitude of the automotive industry and its importance in th’ country’s transportation system ca: be realized only after comparing tt | with other lines,” A. R. (“Charley”) Tyson, manager of the Oldsmobile company, 1000 E. Pike st, sald Sat-| urday, . “Statistics published by the Nation- | al Automobile Chamber of Commerc: show that over six billion passengers | were carried by motor cars in 1921, while the railroads transported | slightly more than one billion.” | “Passenger mileage furnished by | the railroads is computed at 87,000,-| 000,000 miles, and that furnished by motor cars twice as much, or over 70,000,000,000 | miles,” Tyson pointed out. | “Yet, the automotive industry is a large customer of the railroads, car- load shipments from motor car and | truck and parte factories amounting | to 359,472 carloads tn 1921, The nurn- | ber of carloads of incoming raw and | unfinished material required in the| manufacture of theve cars can hard- ly be enttmated.” Lyson quoted motor statistics that | show startling growth: “Over 2,000,000 workers are en- gaged directly in the manufacture of motor cars or material for these cars, This figure represents the correct ; Percentage of the total workers in| each of these Industries patronized by the automotive industry. “Production reports show that 2,- 300,000 cars and 260,000 motor trucks were built in this country in 1922, Registration figures, which are an accurate index to the number of cara in uso, total, In round numbers, 11, 500,000 motor vehiblen operated in thi United States in tho sam te SEATTL# £TaP PAGE B er. “This model will be one of our best bets at the big auto show next week, | auto trucks also predominate and we are confident that it will make a hit with the Studebaker users and fans,” Sands said hown to be almost |i | * ; ae ors ‘¥ : ti ae on the greater cool of lowe COUPE ATTRACTIVE American Autos Could Compass W orld; 120i Se average le j . same reasoning « es to trucks, the \Nine States Own Bulk of Huge Total *ss22\"2 3 | On thin basts the tine of American If all the automobiles in the United biles and trucks would be States today were stretched end to stretching "aa end along the equator, the line would reach around the world and would | extend for more than one-sixth of the way beyond. This is & graphic presentation of the cars there are in this country They include only the passenger Automobiles and motor trucks in use. Thousands of new cars, already pro- duced, are awaiting sales and these! have not been tacluded im the imagt- | bary parade | The estimate ts derived from the Intest figures given out by Alfred A Reeves, general manager of the Na tional Automobile Chamber of Corm- merece. There 60,000 pasenger | t in connection with: « is that more than half trucks in the country are registered y nine of the 48 states in the Union. These figuras | Jare taken from the reports of cara ¥ registered for 1 Figures for 192% | have not yet been completed. Age | cording to the 1921 figures, the ning | states and their 1921 registration are: New York ... . - 179,244 Onto . Pennaytva: TMinols Californ’ Michigan + 416468 cars and 1,260, otor trucks in| Texas. + 467,616 this country today, says Reeves. Iowa .. - $61,084 Indiana . + 400,42 The average length of these cars, it ts estimated, is about 18 feet for Passenger autos and 15 feet for trucks, These figures seem low, but that ts explained by the fact that ‘Thin makes a total of 6,824,466) more than half the total number of cars and trucks in the country at the jend of 1921. From 25 to 30 per cent of all autos produced this year were im closed cars. the country are small care with «| total length of about 11% feet. Small | Bince | o me | : 5 a fest ont et an avtragt, dene! How the 11,500,000 autos and motor trucks in this country! ass carvaraom i ome higher priced cars still longer, the would look if stretched around the earth. FOLLOW THE CROWDS TO McKAY’S $49 WILL BUY ANY MODEL SOrcL CAR, TRUCK OR TRACTOR FOR TEN DAYS ONLY ENDS SATURDAY, FEB. 10 WHY WE ARE DOING THIS As our many friends in Seattle have been exceedingly loyal to us, making it possible in a short time for us to be come one of Seattle's leading Ford dealers, we have decided to make this astounding offer in order to make it pos- sible for everyone to own an automobile. Our success is a concrete illustration of what can be done when the Seattle spirit backs up a Seattle institution headed by Seattle men using Seattle capital and with a personnel of Seattle men. THIS REMARKABLE OFFER IS IN A WAY AN EXPRESSION OF OUR APPRECIATION OF THE CONFIDENCE SEATTLE HAS SHOWN IN US AND IN McKAY SERVICE. READ THIS NEXT PARAGRAPH CAREFULLY The year 1922 saw the Ford Motor Company set a new record for Ford production and sales. This year is starting in a way that indicates 1923 will prove even a greater Ford year. This unprecedented demand for Ford cars is due to two things: To the increasing demand for automotive transportation and to the fact that each year the motoring public is recognizing, in larger numbers, that the Ford car is the world’s greatest automobile value. This January was the greatest in the history of the Ford Motor Company and February starts out with these significant figures on record: DEALERS HAVE ORDERED 148,000 CARS. THE LIMIT OF PRODUCTION FOR FEBRUARY IS 123,000, IN OTHER WORDS, A SHORTAGE IN FEBRUARY IS INEVITABLE. OUR TEN-DAY OFFER COMES AT A NOH RA Cae att CAN BE FILLED. PLACE YOUR ORDER NOW, WHEN YOU KNOW YOU WILL [Tals IS THE LOWEST OFFER EVER MADE BY ANY FORD DEALER IN AMERICA OR EUROPE] REMEMBER: We pay the manufacturer cash, you get the benefit, the use of the car and one year in . which to pay for it. We have only a limited num- ber of cars on hand, so come early to avoid disappointment WHY BUY AN OLD CAR AND CONTINUALLY PAY OUT FOR REPAIRS WHEN YOU CAN BUY A NEW FORD FOR $49 DOWN? HERE ARE THE PRICES—THE DOWN PAYMENT IS ONLY $49 Touring ......$495.90 Coupe .........$638.38 | Four-Door Sedan . .$841.18 Runabout..... 465.74 Sedan ........ 705.98 Truck............. 546.38 These prices are f. 0. b, Seattle and include starters, demountable rims and oil and gas. ORDERS FILLED IN Just Like a Savings Bank A small payment now and your car will be partly paid for by next summer. You might not save otherwise. STRICT ROTATION IT WILL BE THE POLICY OF THIS COMPANY TWICE A YEAR TO MAKE SOME SPECIAL REMARKABLE OFFER OPEN EVENINGS WILLIAM O. McKAY CO. \ TEMPORARY LOCATION EAST PINE AT SUMMIT PHONE EAST 0501 “AFTER WE SELL WE SERVE”