Open Throttle

Detroit last week gave the nation a graphic picture of just how fast the 1955 boom is accelerating: the three millionth passenger car rolled off the assembly lines. In the industry's previous peak year (1950) No. 3,000,000 was not turned out until late June. At this rate, said General Motors Chief Harlow Curtice, 1955 "could well be the biggest passenger-car year in the history of the automotive industry." GM reported that April was the best month, and 1955's first four months were the best for production and sales of new and used autos in the annals of the corporation.

The. real surprise, however, was in Chrysler's comeback. Last week President Lester Lum Colbert announced that net earnings in the first quarter were $34,504,730, or $3.96 a share, almost twice the earnings for all of 1954. Not only has Chrysler's percentage of the auto market jumped from 14% since the same period last year, to 18% but actual sales of 454,948 cars in the first quarter were the greatest in history. Said Colbert: "We are applying every bit of our energy and ability to accomplish even better results."

The furious production pace of the Big Three was crowding the independents almost off the road. Eight-month-old Studebaker-Packard showed an operating loss of $5,694,141 for the first three months. However, the firm is currently in the black with Packard orders exceeding production according to President James J. Nance.

Other earnings reports reinforced the glowing picture. RCA announced record first-quarter earnings of $12,568,000, 25% up over last year, and so did Sinclair Oil and Bristol-Myers. The New York Central made $4,523,646 in April as against $503,682 a year ago and first-quarter net of Standard Oil (Indiana) rose 26% (to $34,950,826).

Elsewhere, the economy was also breaking records. Personal income reached a new high of $294.2 billion annually, while construction hit the unprecedented rate of nearly $42 billion a year. Steel production rose to 2,328,800 tons last week, establishing a new record, and employment in April set a high for the month, with 61,700,000 Americans at work.

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