The Canterbury Aero Club's Pageant – The Triumph of the Motor

Press, Volume LXVI, Issue 19853, 14 February 1930, Page 26

The Canterbury Aero Club's Pageant - The Triumph of the Motor

ACTIVE BUSINESS. CANADA'S INDUSTRY. BRIGHT PROSPECTS FOR 1930. During 1920 the car-building industry has gone through a satisfactory operating period, and as additional business is now being placed with the equipment companies it ensures a continuation of production for several months of 1930. writes Robert Magor (chairman and-president of the National Street Car Corporation, Ltd. It would appear as if Canada is fast Teaching the point where her diversified production of all kinds of commodities would more or less equalise, over the twelve months of each year, the demand for railroad equipment. This is what has taken place in the United States, and there is every reason to believe that the same condition will develop in Canada. Ido not mean to say, of course, that for many years to come there will not be a greater car demand in the autumn to move the Western crops, but the adverse situation in years gone by of requiring cars for the crop-movement period only, and having them lie idle for most of the balance of the year, will, I think, be gradually improved on account of the demand for this equipment to move other commodities between crop seasons. As this condition gradually rectifies itself, it should mean that, although the equipment shops of Canada might not be continuously busy on a high rate of production basis, nevertheless, their close-down periods should be fewer and of shorter duration, thereby tending to stabilise

the industry and eliminate a feast-and-famine condition, which, although not ically detrimental to the industry, ia looked upon by a good many people ss objectionable from a stockholder's point of view. The Stock Decline and Buying Power. Immediately following the serious ■lump in. the p flees of securities listed on the different markets in Canada and the United States, "the majority of people apparently associated this condition with industrial conditions in the two countries. From careful analysis, the only real connexion that existed was insofar as the stock market losses affected the buying power of the individuals who had actually made these losses. If this number had run into relatively large figures in proportion to the total population, it undoubtedly would have had a seriouß effect, on industry as a whole; but I cannot believe that the percentage of population so affected was very large. I am quite convinced that the wage-earners of the country were practically not affected at all, and so far as this class is concerned, there is going on, and haß been for some years, a constant betterment in their position. Almost, without exception, wages have continuously increased, and the Commodities of one kind or another which they purchase have, as a whole, substantially decreased in cost. This stock market situation would Itave been, of course, much more seri®«s if it had found industry in a weak rsition, but the contrary was the case. am convinced that in the two great countries, which make up most of jkorth America, the improvement in

manufacturing practice and the increased efficiency in labour and machinery have-made vances in the last five years which have been unequalled over any like period in all their previous history; management has also improved. One of the greatest things which has been accomplished has been the changed idea about carrying inventories. We used to hear many years ago a great deal about necessary inventories which should be carried, and many a failure has been directly attributed to the amount which was tied up in inventories and the depreciation in the market values of the commodities so stocked. In reviewing annual statements, almost the first thing that any chartered accountant would do would be to check up on the inventory position. It must also be realised that in spite of the serious effect caused by the drop in the value of stock market securities in the last two or three years, all sorts of industrial companies have, through the sale of additional no par common stock, either improved their properties or retired their bonds. This, together with increased efficiency, has resulted in the putting of industry as a whole into a strong and healthy position. Shrinkage in Stock Prices. It certainly is to be expected that such a shrinkage in values or securities, which has taken place is bound to create something more than a ripple in industry and every other business activity; consequently, the continued improvement in practically every line which has taken place within the last few years is bound to be retarded, but not to any serious extent. As a matter of fact such a condition could be caused by many other things besides the shrinkage in security values. Although, of course, I do not hold that it is safe and sound to continue inflation of securities, nevertheless, I think, it

would be equally foolißh to try and tie up every adverse thing that happens with the recent stock market situation. What we all should do when things of this kind occur (which has a tendency to bias a person's judgment) is to first decide whether the violent upheaval has actually disturbed the fundamental soundness of the industrial life of the country, and to be governed accordingly, not allowing one's decision to be influenced by a superficial or temporary disturbance. The stock market upset was no different, except on a larger scale than the Florida land boom or any other similar occurrence, Vhere the. inflated structure collapses on account of it becoming top heavy. Income Tax Law is a Factor. I have for a long time been convinced that the United States income tax law was responsible as the breeder of the cause of the trouble, for the reason that the tax is levied on stockmarket profits as well as regular income. The consequence was that, as people purchased securities, and their value increased, they, knew that if they took their profits, they would be subject to the tax. Therefore, the in-. vestor in most cases decided to refrain from selling, and, as the prices of these securities went up (due Jo a great extent to so much stock being taken off the market), it permitted the holder to buy more stock with the increasing margin which was gradually being supplied by the enhanced market value of his holdings. Everyone knows, of course, that this could not go on for ever, and it is of very little importance | what the cause was which actually precipitated the break. If it had not

BRITISH AIRSHIP. RlOl TO BE ENLARGED. INSTALLATION OF NEW BAY. [FROM OUR OWV CORRESPONDENT.) LONDON, January. 2. 31101, the first of the great airships to bo completed, and which is propelled by Diesel engines, is to be cut in half and another complete bay with a gasbag of about 500,000 cubic feet installed. This was announced recently by the Under-Secretary for Air. Work on RlOl will probably take three months, but in the meantime it should be possible to complete the acceptance trials of RIOO. In order to carry out the work on RlOl (writes the aviation correspondent of the "Daily Telegraph"), the gas is drawn from the gasbags and stored. Each bag is to be let out a few inches, 'experience having shown that an un•necessarilv'big clearance between gasbags and frames had been given. From this alteration alone, there being sixteen gasbags of great girth, a total increase of 130,000 cubic feet gas capacity will be obtained, this quantity affording a lift of about four tons, whilst the extra material involved will weigh very little. The lengthening of the ship by building a new bay amidships, containing a gasbag of nearly 500,000 cubic feet, will be neither difficult nor costly. Increased I>oad Capacity. The new bay will probably be placed Lctween the present eighth and ninth, behind the control car, and in front

of the midships engine cars. A division will be made, the forward and after halves of the airship drawn apart, the complete n,ew bay (ringjframeand gajsbag) hoisted into position and attached, the outer fabric made whole, and installation readjustments effected. The gross lift given - by the additional gasbag will be about 154 tons, but the new bay structure and other necessary additions may weigh five tons. Altogether, and including minor weight-saving modifications, it is calculated that the useful capacity of the'RlOl will be increased by 10 or 11, tons. Any doubt' that she can go to India is' now 'removed. The length of the ship when enlarged will be about 780 ft. She will be the biggest airship in the world, until America's new ships are completed, and she will have a greater useful load cap&city than the RIOO. happened just exactly as it did, it could have happened ,in„ one of a dozen other ways. After' considering the above, we at least to-day find conditions in this part of the world on a saner and safer basis than when stock-market securities were at their peak, and I cannot help but feel that, the vWhole situation is much sounder. -I,' that every thinking person will; exprißSfrVthe hope that corrective measures, taken to eliminate the cfanger of" a recurrence of the eame con'dition. . - DekHn^as in the above with the' Stock-market situation, I might appear to hstve digressed from the subject matte*"- under namely, the

status of the equipment business. I feel, however,,, that it is not a digression, as I believe'that the prosperity or otherwise of many industries hinges for some time to como on the broad question as to whether the stock-market debacle had really affected a large percentage of the people of Canada and the United States and their buying power. Therefore, in a sense, this question is a very potent, factor in this situation; hence my dealing with it in the above as I have. Conditions in Canada are Sound. X will close this article by summing j up my opinion in a few words: I believe conditions in Canada are sound in all essential features. The equipment business, like other necessary industries that are efficiently organised and managed, will progress and prosper with the country, its railroads, and other institutions necessary to the life of the people of Canada. I do not believe the serious scalingdown of stock-market prices has or will materially affect the buying power -of the population. When the prices of stocks were very high everybody was much concerned! as to what would transpire In substance, it represented a suspended menace over the country; and with this situation now in the background, in spite of unfortunate losses which have been made, the danger at least is eliminated, and this situation alone will be an important factor in re-' establishing confidence. The principal thing to guard against in Canada is overcapitalisation of its industries. Due to a limited home market and other such conditions, industry is sufficiently . handicapped, and in order for it to develop and prosper the

higher its efficiency must be and the lower its fixed charges. Last, but not least, investment to the fullest extent possible by Canadians in their own country. This will do more to stabilise conditions and advance its development than anything else. The advantages flowing therefrom will accrue to those who have supported its commercial institutions. MOTORIST AND PEDESTRIAN TROSECUTION FOR MALICIOUS DAMAGE. A case of interest to motorists has just been heard at Brighton, England, when the Automobile Association sue-, cessfully prosecuted a pedestrian under the Malicious Damage Act, 1861. The evidence for the prosecution showed that- an A.A. member was driving his car alongside a tramcar in London road, Brighton, when a man standing on the pavement deliberately smashed the near side window of the car with his stick. He subsequently denied all knowledge of the incident, but stated that "cars were a nuisance on the road." After a lengthy hearing, the Bench fined the defendant £l, ordered him to pay the cost of the damage, £4 17s (icf, a«d £1 2s 6d towards the costs of the prosecution. Jlost of the road transport com- i panies in Britain are controlled or ; partly owned by the railway com- . panies. <

BRITISH TRAFFIC. GROWTH IN SIX YEARS. How motor traffie has increased in Great Britain during the last six years is shown by an analysis *of records taken by the Automobile Association in the autumn periods of 1923, 1928 and 192 D. Street traffic in London and the great cities is not included in these returns. The average traffie passing the hundred or so A.A. census points in 1929 totalled 17,000 private cars in a week, as compared with 3000 in the' year 1923. Thus the average flow of car traffic has grown more than five-fold in six years. Comparing the figures of this year with last year, the average increase in traffic .flow has been over 12 per cent. The highest average per census point is maintained by the North-Western area, which includes Lancashire and Cheshire. There the average was 23,378 cars per point in a week of 77 hours, or an average of over 3330 per day of 11 hours. Whilst car traffic has increased more than five-fold in six years, the actual r b « °*\ cars as n °t yet increased three-fold in the same period, thus indicating that road usage increases more rapidly than the number of vehicles, lliik fact emphasises the urgent need tor greater road development and immediate legislation. le e J" m "joystick" given to the control column of an aeroplane originated from the name of the inventor, Joyce, a pioneer British', aeronautical engineer.

BETTER ROADS. PROGRESS ABROAD. One hundred miles of concrete highway are now being built between Montevideo and Colonia, South America. Th<3 highway now in process of construction will place Montevideo in direct communication with the Plata River at Colonia, from where a ferry service to Buenos Ayres will make it possible to cut seven hours from the present travel time between the Argentine and "Uruguayan capitals. The highway is expected to be complete in thirty months at a cost of 4,500,000 dollars. It is understood that Brazilian engineers are planning a highway from Eio de Janeiro to Bolivia as a second step in opening up international travel through the countries of South America. That the new republic of Turkey appreciates the importance and desir(ability of good roads and highways as 'an increasing economic and military necessity is evidenced by the passing of the new road law which will enable the Government' to repair and recondition 13,000 kilometres of existing roads and to construct 8,000 kilocycles of new highway. "It is expected that this programme will take from fifteen -to twenty years to complete. The Netherlands Association for Fast Motor Roads is planning a system of road costing more than £16,000,000 which will speed up traffic in that country. Roads will extend from Amsterdam to Rotterdam; from Tho Hague through "Utrecht to the eastern border leading into Germany, and from Amsterdam to Utrecht.