NO LARGE PROFIT IN AUTO-MAKING Publication: The New York Times Date: 31 January 1909 Topic: American Motorcar Manufacturers' Association

Benjamin Briscoe, President of the Maxwell-Briscoe Motor Company and Chairman of the American Motorcar Manufacturers' Association, who, with President H. B. Joy of the Packard Company, placed before the Committee on Ways and Means in Congress a brief prepared by the American Motorcar Manufacturers' Association on the matter of tariff on motorcars, feels very strongly on the subject, and is determinedly opposed to any reduction in the present duty. He said yesterday:

“Notwithstanding the great number of machines sold and the money invested, it is a fallacy in the public mind that the manufacture of automobiles represents a large profit. As a matter of fact, 90 per cent. of the automobile manufacturers of this country are not even making a manufacturing profit. This is not due to poor business management, but is due to the large amount of capital required in the experimental and development stages to bring the industry to its present condition, and also to the many unusual risks incident to the conduct of a business of this character. The number of concerns which have started in business and have been compelled to withdraw is startling. For example, in 1902, 51 concerns started; 18 discontinued that year. In 1903, 1904, 1905, and 1906 the percentages of those which discontinued are even greater. But these failures were under the present tariff rate of 45 per cent.

“If the tariff is levied as a protective tariff, then it should cover the difference in actual cost between what we can produce cars for in foreign countries and what is actually costs us to produce them for in our own. It is a fact not generally known that the tariff rate as it exists at present is only 10 per cent. higher in this country than in Canada. Should the present tariff rate be readjusted the only alternative for the American manufacturer would be to move the whole or a part of his manufacturing plant to such countries as will put him in touch with competitive labor conditions.”