Show REASONS FOR BIG STUDEBAKER S CUTS ARE GIVEN Anticipating Reduction in Raw Mat Materials rials Public Given Advantage The following communication f ri re received received received re- re yesterday by officials ot of the T. T W. W I 1 L. L O. O Naylor company ex explains explains explains ex- ex plains how the Studebaker corporation corporation corpora corpora- tion was able ble to make the sweeping reductions in the price schedule of ot its cars After Atter careful study of the situation situa lion tion and weighing the probabilities of ot the future we have reduced the prices of ot Studebaker cars f. f o. o b. b factory factory factory fac fac- tory as foll follows ws Special six touring touring 1750 a reduction of ot special six coupe 2650 2650 special six sedan 2750 and big six touring 2150 being a a reduction of ot each The Studebaker business has been built up during the th the past sixty-eight sixty years upon the polley of ot large production production tion lion and small percentage of ot profit We believe that the recent rapid decline de decline dei de- de i cline in prices es of bt many commodities and raw materials presage lower prices for those not yet reduced ane and of ot course manufactured products of ot all kinds which are highly desirable If It production Is to be ba sustained and unemployment avoided this winter Our plants have operated at full capacity capacity capacity ca ca- ali all year and are doing so to today to- to day and we now have on hand unfilled un unfilled un- un filled orders for over cars This oversold o has lias been constant with us ever since the war ended and our production sate safe sales and profits for tor forthe forthe the first nine months of ot this year greatly exceed totals for the full year yea of ot 1919 Nevertheless we believe it is ia highly desirable that lowering o of ot f prices should be encouraged and w ware weare we weare are are- therefore anticipating at this t tim our ability to purchase materials at l lower figures during the coming year t to Improve labor Jabor efficiency and to increase our present volume of ot busness business bus busi ness all with the effect of ot lowering the production cost of ot automobiles automobile Existing wage rates will be maintained maintained main main- tamed at all Studebaker plants which at present are employing pea pea- peo peo- pie The capital and abd surplus of ot this corporation are now a aits an and its sales are running at the rate o of f per annum |