Monday, Jan. 17, 1938

Bill & Mr. Barit

President Roosevelt, looking very wise, last week drew an illustration for his press conference, a parable from the humble life of a friend named Bill. Bill runs a garage in a small town and sells automobiles on the side. When he is asked how business is he says it is too good. The people in his town ordinarily buy about 30 new cars a year. Last year they bought 62. So Bill broods gloomily on the thought that this year he may sell only 15 cars. The moral of the President's fable: what this country needs is a little planned production.

Planned production as a New Deal phrase means Government-planned. Last week in Detroit three private plans which might interest Friend Bill were announced. By next week Ford Motor Co. hopes to take back about 25,000 River Rouge plant workers. Chrysler Corp. announced it will take back 55.000. Hudson Motor Car Co. announced it will take on 6.000. In two respects Hudson's announcement was the biggest news because i) 6.000 more men will double Hudson's present payroll. 2) the purpose of the increase is to bring out a new low-priced car. It will be called the Hudson 112, will sell for $25 to $30 more than the average standard model price of Chevrolet, Ford and Plymouth. Price for a three-passenger Hudson 112 coupe: $694.

Hudson's announcement was enveloped in an aura of economic philosophy, some-what different from that of the President's

Friend Bill. Said Hudson Motor's president, heavy-jawed A. (for Abraham, which he dislikes) Edward Barit: "If the automobile industry was able to lead the way out of the Depression, it seems reasonable to expect it to do something about leading the way out of the Recession. . . . While there are confidence-inspiring moves of a general nature that can and should be made, there is one specific job for industry

--that is to put more men and money to work. . . ."

Mr. Barit's action was certainly not the familiar automotive stunt of changing a few gadgets as an excuse for lowering a car's price. The Hudson 112 is a bona fide new car. Nonetheless motormen generally regarded it as primarily an attempt to snare a market which has balked at high prices. How successful it will be remains to be seen, but last week it had President Roosevelt's blessing.

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