The Motor World

NZ Truth, 6 January 1917, Page 12

The Motor World

(By "Crank.")

In September issue of the "Electric I Vehicle," -England, Mr. J. R. Mead, borough engineer and surveyor, Ips- ( wich, gives some interesting particu-., lars'of the first year's working _of 'the ' three-ton electric tipping wagon m use m; his department., . He points out that there was plenty of work to keep the wagon continuously employed. Fbr the. year ended March 31 last the vehicle had covered a total distance of 6154 miles, and is estimated to have handled a little over 900 tons of/variqus jnaterlal. The following are the actual expenses Incurred: Garage, £18 4s; repairs, lubricants, etc., £4 14s; electric energy, 7961 units at Id, £33 3s sd; 10 per cent, added to charges, £3 6s 4d; interest at 5 per cent., £47 18s 6d; depreciation, £71 19s; renewal of tyres, £38 ios; renewaL of "fiattery plates, £94 10s; insurance, etb., £8 14s. Bd. Total cost per annum, £396 16s/7d.

In rngard to tyres, it is fairly certain that had, the vehicle been kept to "made" roads tho wholo time a greater average mileage than 8000 might reasonably have been expected. As it is, the vehicle has had to run over roads m the process of making and into the clinker yard at the destructor, which imposes very -severe and destructive conditions upon rubber tyres. "Our experience, after a year's use," says Mr. Mead, m conclusion, "is that this type of vehicle is very reliable, is economical, and — what is quite important m these times — is so simple to drive that any Intelligent laborer or horseman can be taught till there is to learn In a feAV hours. Its handiness m negotiating congested streets and m manoeuvring to loading and tipping places is a greater advantage. Our experience is that Ihe tiand-tlpping gear is somewhat slow, and, nWcover, , cannot bo operated by one man alone, so that it would floubtless pay to fit such vehicles with power- operated gear."

THE MOTOR CAR AS A WEALTH PRODUCER. According to the American financial critics, . motor car manufacturing has become one of, if not the most, profitable Industry m the worlds The figures given are really, astounding. There aro now about three million motor cars lm the /United States, n/jri probably another miUion will be added during tho coming year. The people who arc making these cars have opened up a veritable bonanza and are shovelling out nuggets by tho ton. Tako tho Ford Company, far and a way the biggest example. This concern has a nominal capital of two million, but yet In the year ending July 31, it turned out over half a million care, representing an increase 01 225,000 over the previous year. The output was valued at, two hundred and thJrty-flvo million dollars, and since Ford started In business he has turned o«t altogether 1, -100,99" cars. There aro now about 35,000 men on tho pay roll at Detroit, to say nothing of largo factories in' Canada, England, and France. JThe secret of Ford's success Is said to bo that instead of Increasing tho prlco of hiß car m accordance with the increase In the price, of raw material, he lowered the cost of produc\tion. Other automobile manufacturers added ft hundred dollars or so to She soiling price of their product: KC<H-d increased tho capacity of his j •plaAit. Every additional (houaumd cars turned out reduces tho uvcrajto cost. Thus', In order to lower the price of

j his cars by £10 Ford increased, the capacity, of his plant ,to 750,000 a year. As to the profits ,of this huge concern, a banking expert Has .declared that^eveTy cent obtained over 179 dollars'for a Ford car is clear. As the cheapest Ford sells at 345 dollars the, net profit is ebout 100 per cent., and on this basis it is estimated that the Ford Company earned last year a million dollars a week, or 3000 per cent. Ford has \ how started his own blast furnace and steel! mill, he intends even to dig his own ore, and will become entirely self-contaitred m the matter of raw material. All this saving of Intermediate profits win tend to still further lower the cost of the Ford car, a^id it ia expected that ere long these vehicles will bo obtainable for £60 each; . ■ >

Other companies look small beside the Fprd, but their profits are by no /means negligible. / In. the' last seven years the Packard has earned 18.636,---506 dollars — charging off 9,000,000 dollars for depreciation, and expects this year t6 earn 6,050,000 dollars. Its earnings m 1914-45 totalled 2,769,---518 dollars. The Stewart- Warner Speed-, oineter earned 1,275,000 dollars m six months ending June 30. In 1915 the Willys-Overlaid Company doubled its earnings of the previous year, making 11,201,266d0i5. The Chevrolet Motor Co: is looking for 8,000,000 dollars this year. The General Motors Company, controlling the Buick car, showed 25,000,000 dollars on its 132,000 cnra sold In , the year ending July 31. In August the Haynes Automobile Co. declared a stock dividend of 108 per cent, increasing its capital stock from 1,400,000 dollars to 4,000,000 dollars; the ,0700 cars built In 1918 earned 1,600,000 dollars, and It expucta "In ,the next year to produce 12,000 cars. The Studebaker Conipiany reported 6,028,329 dollars earnings m the first six months or this year. The Fisher Body Corporation makes bodies at the rato of 350,000 a year, and this year's earnings exceed 2.000,000 dollars. During tho same period the. General Motors Company distributed a dividend of 70 dollars^nrr share, and its earnings have now. become so great that it has had to be recapitalised at 75,000,000 dollars. The Max wall Motor Company, which Is paying' a ten per cetit. dividend, produced 6f«,000 cars In the year, and will douWal Lhe number next year. The Chovro^\ will product 10,000 cars a month, iii.d tho Siu.debaker's year's output is to be 100,000. The marvel of it is that all these cars fire readily sold; there aeenm to be a never .ending demand for tha light iMitomobll'e. The v factories are. overwhelmed with orders, and there la enough business m sight to keep every factory going at full speed for tinothor y<iar. On tho average there ia on^ automobile for every 35 persons m tho United States. The proportion In tlvo different States vurtes of com*s«. Thus m California ono person out of every 15 has his motor, whilst In New Xork one out of 39 Is so favored. Tho extent of this "business- . Interests invoked may lie gauged from the fact that about 23,000 dealers m cars and supplies wore dependent osn the .milk*, -white t to meet tho wants' ot ownor;) there are twenty thousand (garages and ten -thousand repair shops. Anothor effect of this vast expansion baa be<m the marvellous improvement- of tho roads throughout the whole country. The Federal Government has paesed a Ij.oad Act which provides/ for tho distribution of 25,000,000/ dollars nin/jnsr.st tho States for tbo Improvement of tho roads. Tho Government , can well afford- to do this, stne<» m 1915 v HJim of over eighteen million dollars was obtained from car owikth by way of Uoentso and registration fees.