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Show STRUGGLE FOR SURVIVAL H OF THE FITTEST BEGINS Auto Industry Is Feeling the Effects of Price Decline With Battle Among Manufacturers Following the nation-wide decline in I prices of automobiles, comes a halt a,.d now. with the easing of the money mon-ey market, a rise is beginning lo loom before the prospective motor owner. The Stutz and th locomobile ere the first to set a date for this increase, and more manufacturers are expected to follow. I The cause of this reaction. It is generally agreed, la the loosening of credit during the period j' cop movement move-ment The drop which benefited so many new motor owners recently Is itnibuted to the ac on of the Federal Reserve Hoard In restricting credits " bring about a gradual currency deflation, de-flation, clans for expansion of a ! o- ' mobile factories ha-1 been proceeding so rapidly that, it was realized, a break would have to come. The ac'ion of th? board averted thla break -nd eliminated elim-inated the Speculative elements In the 1 automobile Industry. At the same time, however, an effect ef-fect of the price decline, until recently recent-ly only tr.lked about. Is now beginning to be felt in the automobile industry. Th:t is the Inevitable struggle for the survival of the fittest nt 12 "POP1 1. IR ns" j I'assenger automobiles last year wore built by i to different manufacturers manufac-turers 'f these, only 1 J can be classified classi-fied .as makers of w-hat are termed "popular" cars The number of automobiles bull' during lfl!' amounted to 1 4f,:,2. 1 f these, the 12 constructed So per cent 1, 340, .000! f the Na manufacturers, 1 only :t". have an output 1,1 ."i'Uio or more cars annually. , The tightening of credil by the Fed-larger Fed-larger manufacturers to any great ex- I, ni, hu it did cans,, considerable op-I op-I prehension among 'bo 100 or more I who could not well afford to reduce JJH 'their prices and go along on the same 'plane as then- bigger competitors. . Alreads i!o bittb- of Hie strong agalnsi the weak has resulted In casu-iiu,. casu-iiu,. Chalmers and Siaxwell have had to combine 10 save themselves. while some nf the weakest have found themselves In the hands of receivers. SAMS IN TRUCK INDUSTRY. BS A similar situation eists in the manufacture of trucks. List year. 169 I manuf actuera built 816.364 tucks. Ot these, the 1;, leading truck builders .produced 215.800. or 68 per cent! I The truck manufacturers plan to In- ""H their output I 875,000, an average of 18 per cent for Pl the whole Industry. Hut this will be centered In a 20 per cent to 25 per cent increase of the larger firms, while the ' ISO smaller builders will tall below irk. I This, in spue of the fad that tie V 'potential market for trucks was never fl ni,..., estimated I t , farmers ilppe will require 800,000 sS 1 in i 1 now 'ii the 1' irms, i'- 1 To 1 11 automoolli owner, or pros-pectlve pros-pectlve owner, the outlook seems on- Bi cotirnglng, In spit" of the reactloi sH high prices. Thla H to be con fined jo the manufacturers of the more exclusive cars, but ther,. Is no sign or any change In the prices of 1 be popular-priced automobiles. |