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Show L W OF MATERIAL i IRS ID AUTO PRICES MAY FOLLOW I "There !s no doubt but that, if r 'Prices of materials continue to soar, automobile manufacturers generally ' will bo compelled to announce another , Increase in price," says W. J. Thomp-; Thomp-; son of the Colorado Motor company. I "Even the large concerns which, bo- ! cause of their financial standing and credit, have been in the habit of 'cov- ering" for two years In advance for their requirements, now find their two-year-old contracts expired and no pos-slbllity pos-slbllity of renewing them at the former I " torices. Advances all the way from 25 to 100 per cent are announced, and, worst of all, few supply houses can guarantee deliveries or prices even at present quotations. "Everybody is In tho same boat The fact of the matter is there Is a shortage short-age of raw materials, or If you prefer to put It tho other way, an overdemand for them. "I have never Known a time when market conditions were so uncertain or when the manufacturer had so much difficulty In estimating his costs as that which now exists. "Just tike one item that the average buyer would never think of the shortage short-age of railway cars. Who would suppose sup-pose that that would be a serious item In the increased cost of making automobiles? auto-mobiles? , xi . "When I tell you' that the manufacturers manufac-turers frequently pay as high as $2500 in. express charges In one day In order to get materials that otherwise would seriously helu up tho factory, and that their average express bills amount to soveral hundred dollars a day, it will be seen that this Is an item of considerable consid-erable Importance In the cost of pro-duction pro-duction today. "Every time you stop a big factory you entail a tremendous expense and consequent increased cost of the product prod-uct that Is coming through. iinTIir,Tir in nrnninu.i h iiwffc,.ii. - "The customers who are clamoring for cars cannot appreciate the problems prob-lems that beset the manufacture, first in getting the material to his factory, and then getting the finished product out again to the customer. "Machinery has doubled in A'aluo; tool steel is out of sight; diemakers and diesinkers are earning twice or three times as much as they did a year ago; working hours are shorter and wages are higher. Then look at the price of coal not to mention the uncertainty of the supply.' "Many times tho raw material shipped gets lost, and in tho present state of congestion It is almost Impossible Im-possible to trace and locate. Sometimes Some-times this material cannot be replaced. "Everything that goes into an automobile auto-mobile has taken an upward trend, and as the policy is to make cars better and better overy year our costs are most seriously affected. "So far. we have weathered the storm and steadfastly refused to increase in-crease prlceB, but there is no certainty how long we may bo able to do so. If conditions do not change for the better soon we not only will have to announce an-nounce an increase of price, but other manufacturers, who have previously done so, will havo to announce another." |
