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Tokyo, January 3. Once again, Japanese auto production has outstripped all competition. In the words of Setsui Tamizake, outspoken head of giant NKF Auto Industries, "We are the best."

 

Detroit, January 4. In a packed news conference, Frank B. Service, president of the troubled U.S. automaker Colossal Motors, admitted to another loss of over two billion dollars, "due to a lack of customer appreciation of the merits of our new Z-car."

 

Washington, D.C., January 6. Legislation to further restrict foreign imports is reported still stuck in committee. The main objection is that foreign goods are often cheaper, so that stopping these imports would further accelerate inflation.

 

New York, January 7. Interest rates are rumored to be on the way down again. On the rumor, the Dow-Jones Industrial Average today soared more than seventeen points, to 467.79.

 

Kapungoola, January 8. The price of oil is going up again. Delegates to the Oil Producers Price Adjustment Congress today agreed to an immediate five-dollar-a-barrel increase, blaming "renewed inflation in the oil-consuming nations."

 

Detroit, January 8. G. Bates Merritt, former president of bankrupt Mammoth Motors, today warned that, "this country can't continue to support foreign manufacturers." Speaking to a meeting of the Auto Industry Emergency Council, Mr. Merritt stated, "What we need is a partnership of Capital, Labor, Government, and the American consumer. The Japanese succeed because their government backs business, and their consumer never gets a chance to squander his money on all kinds of foreign goods. Either we voluntarily stick together, or we're all going down the rat-hole together, involuntarily."

 

Silicona, Calif., January 11. Edwin A. Storch, inventor of the lattice-channel-junction technology that has revolutionized the booming microelectronics industry, was today questioned about the Detroit situation by veteran financial reporter Rupert Neal:

Q: "Mr. Storch, should we shut out foreign auto imports?"

A: "No, we ought to obsolete them."

Q: "How do we—"

A: "Quit this step-by-step fooling around, and redesign from the ground up. The last large-scale innovator the auto industry had was Henry Ford."

Q: "You're saying Detroit is out of date?"

A: "I'm saying the whole auto industry is out of date."

Q: "How about the Japanese?"

A: "Hard-working, efficient people."

Q: "What about their cars?"

A: "They're dinosaurs."

Q: "They're profitable, aren't they?"

A: "So was Detroit, when it was turning out two-ton gas-eating monsters with nothing new but the chrome trim. You're talking about profit, the so-called 'bottom line.'"

Q: "That's the name of the game, isn't it?"

A: "Which game? I'm talking about progress."

Q: "You can't separate the two, can you?"

A: "Are you kidding? They used to have two-wheel brakes on cars. Rickenbacker saw the opportunity for improvement, and built cars with four-wheel brakes; there was a whispering campaign that four-wheel brakes were unsafe, and his car was finished right there. Chrysler saw that streamlining would be an improvement, and then the customers didn't like the style. If innovation was the same as profit, all successful businessmen would be inventors. They aren't the same. But we can beat the imports if we obsolete them."

Q: "Would you say that you, yourself, combine innovative and business skills?"

A: "I'm not a businessman. When I got the idea for LCJ technology, I wasn't strictly even in the microelectronics industry. I just thought I saw a way to revolutionize microprocessors."

Q: "And it worked, didn't it?"

A: "True. But if I'd had to be a businessman, too, I don't know. I went to a banker, thinking to get some backing, and he said, 'Mr. Storch, I don't understand a word you're saying. And I have serious doubts. You suggest too large an improvement from your idea. You are basically a chemist, experienced mainly in coatings—durable surface coatings, I believe—not in microelectronics. And you don't have an actual working model to show me. But never mind. I'm going to give you a name and address, and a note to take with you. The man I am sending you to is a venture capitalist. He may decide to risk some money, and find you a partner to take care of the ten thousand business details you've never dreamed of. If he says "yes," come back.'"

Q: "Did he say 'yes'?"

A: "Luckily."

Q: "But, now, you're saying Detroit can't beat the imports, or what?"

A: "I'm saying the whole fight so far is a waste of effort. We need a new product."

Q: "Why don't you make it?"

A: "I'm an innovator, not a businessman. I see the technical part, but that's all."

Q: "Why not get the government to help?"

A: "The government wants to keep Detroit afloat. What I want is a car that's not another dinosaur."

 

Honolulu, January 14. Jacob L. Arnow, the American financier, today ceded control of the Interislands Restaurant and Hotel chain to Oceanasian Development, a foreign-dominated investment organization believed to be controlled by Setsui Tamizake, head of NKF Auto Industries. Mr. Tamizake, reached in Tokyo, refused comment on his role in Oceanasian Development, but said, "Arnow is just a drop in a receding American financial sea. He should have seen this, and his losses would have been smaller."

 

San Francisco, January 15. Jacob Arnow, the financier, was questioned here by reporters as he debarked from the Islands Belle:

Q: "Mr. Arnow, did you hear what Tamizake said about you?"

A: "I care more about what he did to me."

Q: "Is it true that you lost ten million dollars?"

A: "That's none of your d—d business."

Q: "What's your answer to Tamizake?"

A: "I won't answer him in words."

Q: "Mr. Arnow—"

A: "Out of my way."

Q: "Mr. Arnow, why did you come back by boat instead of a plane?"

A: "To think over something I saw in the paper."

 

Washington, January 17. Renewed concern is being expressed here over the size of the Federal budget. And inflation appears to be accelerating again.

 

Zurich, January 18. The dollar resumed its vertical fall today, on word of lower interest rates in the U.S.

 

Washington, January 19. Dr. H. Walter Schoen, new head of the Federal Reserve Board, denied that he intends to lower interest rates. "To assure a stable dollar," said Dr. Schoen, "it is essential to maintain realistic interest rates above the rate of inflation."

 

Zurich, January 21. The dollar rebounded today on news of higher U.S. interest rates ahead.

 

New York, January 21. Panic struck Wall Street on word of another jump in interest rates. The Dow-Jones Industrial Average plunged thirty-eight points to a new low of 396.

 

Detroit, January 23. Frank B. Service, head of troubled Colossal Motors, today blasted "chaotic conditions in the financial markets" for the continuing problems facing CM. "How," Mr. Service demanded, "are we supposed to plan ahead? You can't borrow money without going broke paying the interest. You can't sell stock to raise money, because the stock market has turned into some kind of city dump. If you've got foreign subsidiaries, you have to juggle dollars, pounds, francs, marks, and yen, and you don't know what any of them will be worth three months from now." Explaining a new wave of firings, layoffs, and plant closings, Mr. Service said, "It's the only way to stay in business. We just can't ignore the bottom line."

 

Tokyo, January 31. A delegation of Japanese businessmen is reported to have prevailed upon outspoken NKF head, Setsui Tamizake, to change his speech before the Asia-America Friendship Society. Mr. Tamizake's original speech is rumored to have contained the words, "to America belongs the past, and to us the future." In his revised welcoming speech today, Mr. Tamizake said, "We of Asia honor the great deeds of America's past, and aim to build our future upon heights you have known before." Mr. Tamizake then took the delegates on a tour of the gigantic NKF Auto Industries Main Plant.

 

Silicona, Calif., February 16. Edwin Storch, inventor of the lattice-channel-junction technology and chairman of LCJ Corporation, today confirmed rumors that he met recently with financier Jacob Arnow. Asked the reason, Mr. Storch replied, "Oh, Jake and I like to go fishing together."

 

New York, February 17. Financier Jacob Arnow, questioned about a possible venture with hard-coatings and microelectronics wizard Edwin Storch, admitted contacting Storch last month. Rumor has it that the two men discussed producing a new type of car. Arnow refused comment on these rumors.

 

Detroit, February 17. Auto industry officials here discount rumors of a new car. "If anyone could do it," said one auto executive, "CM would do it. Their new Z-Car is first-rate, but in this economic climate, it doesn't sell. A newcomer would be wiped out."

* * *

Washington, April 20. The Administration is reported putting pressure on the Federal Reserve to bring down sky-high interest rates.

 

Geneva, April 21. The dollar plunged again on fresh rumors of a drop in U.S. interest rates.

 

Washington, June 20. Word is circulating here that the latest economic figures are unusually bad.

 

Seraloa, July 1. The Quarterly Conference on Oil Price Readjustment today announced a price increase of fifteen dollars a barrel. Abu Sinkad Selou, chairman of the conference, warned, "The wasteful oil-consuming states must control their appetites." Chairman Selou also announced agreement on a new cut in oil production, "to save our irreplaceable resources."

 

Washington, July 2. Well-informed sources here warn of serious consequences if the renewed sharp oil-price increases continue.

 

Salambang, July 15. During a press conference, Seroo Seleen Tarabanda, oil-state firebrand and this month's price-adjustment chairman, jeered at rumors from Washington of possible "serious consequences" to new price increases: "If they had the power to dare to create 'serious consequences,' they would create serious consequences. If they had even the possibility, they would deliver a plain warning, publicly or in private to us. They do not possess even the possibility. So they make rumors. This is to soothe their simpleminded public. Confused, are they not?"

 

Washington, July 20. Recent comments by Seroo Seleen Tarabanda, chairman of this month's Oil Price Readjustment Conference, have hit this city like a pan of dishwater over the head. Senator Graham G. Young, chairman of the Foreign Affairs Committee, seems to express the general reaction: "You put enough heat on any explosive situation, and it's likely to blow up in your face. Tarabanda has now lit the fire."

 

Salambang, July 31. Seroo Seleen Tarabanda, Chairman of the new Monthly Conference on Oil Price Readjustment, defiantly announced "an initial monthly price adjustment of thirty-five dollars a barrel, 'to make up in advance for decreased purchases by the oil wasters.'" Many delegates are reported to have protested the increase, but to have been voted down.

 

Washington, August 1. Senator Graham Young of the Foreign Affairs Committee met this morning with the President, reportedly over the latest oil price increase. The senator is believed to have urged strong action, including military measures, if necessary.

 

Moscow, August 2. The Soviet Union today warned that "any interference" with the oil states "will be crushed."

 

London, August 4. There are persistent rumors here of a new U.S. weapon, due to be tried out on whoever raises oil prices the highest. Fantastic though the rumors seem, usually reliable sources believe there is substance of some sort behind it.

 

Norfolk, August 7. The newly formed U.S. Second Fleet is being fitted with what are spoken of as "normal weapons improvements." Spokesmen denied rumors of new weapons.

 

Washington, August 8. The President, in his news conference, refused to confirm or deny the truth of rumors of a new weapon.

 

Paris, August 10. Surprisingly detailed reports are said to have reached French naval circles of an American device which "essentially reproduces Archimedes's sun-weapon." The American weapon, according to these reports, involves a tremendous concentration of the sun's rays, by means of metallized film. The U.S. Embassy here has dismissed the rumors as "pipe-dreams, pure humbug."

 

Oil City, Sultanate of Tazar, August 16. Intense nervousness is evident here, in the light of recent rumors. Seroo Seleen Tarabanda, fire-brand head of last month's price meeting, is extremely unpopular here. A typical reaction was that of Abu Said Ha'ak, a leading politician: "Tarabanda would stick pins in a tiger to prove he is dead, and thereby wake him up. Would it have cost him money to be polite?"

* * *

Zurich, August 16. Dr. Heinz Bittendorfer, world-renowned economist, refused today to predict the outcome of the present world economic situation. "It is a hive of enraged bees. Who can say what will happen?"

 

Washington, August 16. The Defense Department revealed today that the heavily reinforced Second Fleet has entered the Mediterranean. Asked why, a spokesman replied, "To maintain the peace."

 

Moscow, August 16. In a strongly worded statement, the Soviet Union warned that "any imperialist interference with peace-loving nations will be crushed with an iron fist." Moscow is rumored to have sixteen divisions of airborne troops ready to move "at a moment's notice."

 

Oil City, Sultanate of Tazar, August 18. Tazar today announced a fifteen-dollar-a-barrel discount in its oil price. The Tazar foreign office earnestly denied asking for Soviet or U.S. protection, saying, "So far as we know, the peace here is not in any danger. We just want to live quietly."

 

Sabadang, Golduhar, August 20. The Sheikh of Sabadang today cut the Sheikhdom's oil price by twenty dollars a barrel, "for competitive reasons."

 

Washington, August 21. Most Congressmen report that their constituents show no gratification at the recent drop in oil prices. "They're mad," said Congressman Nicholas Veale, "and they're waiting for some new stunt."

 

Paris, August 28. As yet, no sign has been found of Seroo Seleen Tarabanda, oil-state firebrand who arrived here during a visit earlier this month. Police spokesmen offer little hope for his safety. "We are not the only ones looking for him. We are just the only ones he can afford to be found by."

* * *

New York, September 15. The prime rate dipped today. It is now below thirty percent at most major New York City banks.

 

Washington, October 1. The steep drop in oil prices is reported to have had little impact in lowering inflation, as the drop merely cancels the preceding steep increases.

 

Detroit, November 2. Frank B. Service, president of Colossal Motors, today held a news conference at which he announced the first of the new "Q" cars. "With gas again below $5.50 a gallon," said Mr. Service, "we expect the consumer back in the marketplace." Mr. Service admitted that this has not happened yet.

 

Tokyo, December 15. Setsui Tamizake, outspoken head of giant NKF Auto Industries, has admitted to a falling off of sales, though NKF has further increased its market share. Mr. Tamizake suggested no reason for the sales decline.

 

Bernhardt, Minn., December 20. Professor Charles Arden of the Bernhardt World Analysis Clinic today reported "recent studies conducted by the Clinic indicate an 'oil psychosis' that is becoming worldwide. There has been so much trouble from oil that people are actually becoming sick of it." Dr. Arden also reported that studies carried out for auto manufacturers suggest that the automobile itself has acquired a negative image. "People now equate the auto with Expense, Breakdown, Recalls, Pollution, Inflation, Shortages, and Waste. This isn't encouraging for an early upturn in car sales."

 

Zurich, January 4. Dr. Heinz Bittendorfer, world-renowned economist, warned today that the world may be slipping into a deep depression. "In present circumstances, a depression is only too possible. We have very high interest rates, continuing inflation, tight credit, and extremely high fuel prices. There is, moreover, the feel of a depression. There is a sullenness, a grayness. I think that is it, a depression. And I do not know the cure."

 

New York, January 5. Financier Jacob Arnow, in a rare appearance on Wall Street, was questioned by reporters about the statements of Dr. Heinz Bittendorfer, the renowned Zurich economist:

Q: "Is Bittendorfer right?"

A: "I'm not an economist."

Q: "You're a financier, aren't you? Isn't that the same?"

A: "They have theories. We're stuck with the reality."

Q: "You've got an opinion?"

A: "Who hasn't?"

Q: "Stop stalling. Is Bittendorfer right?"

A: "Look at the papers. Where's the Dow-Jones Industrials? 316 yesterday, wasn't it? What do you need an economist for? Sure we're in a depression. What else could it be?"

Q: "Since you're a financier, isn't it your job to get us out of it?"

A: "You're a newsman. Is it your job to get me good news?"

Q: "You know what I mean. Isn't it?"

A: "Well, the government isn't paying me for it. My first job is to make money, or I wouldn't be a financier very long."

Q: "What about the new car?"

A: "No comment."

Q: "Bittendorfer doesn't know how to end a depression. Do you?"

A: "Yes, and so do you. So does Bittendorfer. You end a depression when people see something worth so much more than what it costs that it starts the money flowing again."

Q: "How can something be worth more than it costs? Isn't everything 'worth' what it costs?"

A: "No. That's just the price. The worth of the thing is different. If something will do a lot more for you than the money it costs, the odds are you'll find some way to buy it. When things generally are worth more than their prices, and people realize it, they'll buy, and enough of that will end any depression. You start with bargains."

Q: "What's stopping it from happening now?"

A: "Look where the oil price is. Look at the interest you have to pay if you borrow money. Look at the price they put on the Q car they were sure would sell. Look around, and you tell me where there's a bargain anywhere in this high-price place."

Q: "How about the stock market?"

A: "Sure, once we come out of this mess, this will have been a great time to buy. Meanwhile, it could go down another hundred points. Hop right in, why don't you?"

Q: "If you know so much, why don't you end it?"

A: "No comment."

Q: "Can a so-called financier end it?"

A: "If he finds the right innovator."

 

Sabadang, Golduhar, February 24. The Sheikh today refused to lower prices by the additional $2.50 per barrel reported of other producers. "I do not need more dollars," the Sheikh is reported to have said. "If they will not buy at this price, I will cap the wells. The oil, once burnt, is gone forever. They can print endless dollars. Therefore, the oil is worth more than the money."

 

Washington, June 11. The Administration today reported that the Armed Forces are at last up to full strength. The economy is so bad there are still plenty of volunteers looking for at least some job. In the words of the Treasury Secretary, "We are in a stagflated depression, and I don't see which way is out."

 

New York, August 25. The Dow-Jones Industrial Average slid fractionally below 300 today, then rebounded, to close at 302.46. (See our special article, page D4.—"Can It Go Lower Than Zero?")

 

Skogosh, Wisconsin, September 29. There has been a small business here for years that has produced a type of ultra-tough resin for specialty use in industry. As the economy has declined, orders for this resin have increased. The small shop has gradually expanded, at the urging of its customers, and now employs over two hundred and fifty persons. The owner cannot explain why orders have increased. Today he received a huge new order and must expand again to keep up.

 

Washington, October 15. The latest Economic Conference has ended in another blind alley. This time, not even a report is to be issued.

* * *

Zurich, October 21. Dr. Heinz Bittendorfer, world-renowned economist, announced today that, after a careful computerized study lasting more than six months, "No way out of the Stagpression exists. Everything is too well balanced on a low level. I cannot explain it to the layman. To the scientifically educated, I would suggest the comparison of entropy. We are falling economically to a state of maximum entropy."

 

New York, October 21. The stock market today collapsed 29.79 points, to a new low at 181.86.

 

New York, October 22. Financier Jacob Arnow today called a news conference to announce the production of a new vehicle, the "Star," named from a combination of the first letters of inventor Edwin Storch's name and that of Mr. Arnow. Arnow also stated—and he insisted that he was serious—that the bottom of the economic cycle has now been reached. Mr. Arnow claimed that the Star vehicle "will lead the way upward in an economic advance possibly equal to that following World War II." He then answered questions put to him by skeptical reporters:

Q: "Mr. Arnow, don't you have any model, or at least some pictures, of this new car?"

A: "We're keeping the details secret."

Q: "Why?"

A: "It's a new concept."

Q: "Does it run on wheels?"

A: "Yes."

Q: "Does it have an engine in it?"

A: "Ye-es."

Q: "Does the engine run on gas or oil?"

A: "No comment."

Q: "What's so new about it?"

A: "It will get over a hundred and forty miles to the gallon in favorable conditions."

Q: "What are favorable conditions?"

A: "Good weather."

Q: "What's that got to do with it?"

A: "It takes fuel to run the heater in cold weather."

Q: "Are you serious?"

A: "Of course, why not?"

Further questioning drew no more information from Mr. Arnow.

 

New York, October 22. On first word of the Arnow interview, the stock market rose five points. (See "Interview" on page D2.) When the full interview became known, the stock market fell twenty points. (See "Disaster," page A1.)

 

Silicona, Calif., October 23. Inventor Edwin Storch today backed up the claim of financier Jacob Arnow that the two men are producing a new vehicle named the Star:

Q: "Are you, or aren't you?"

A: "Yes, it's in production. And 'Star' is the name. It fits. In more ways than one."

Q: "Where are you building it?"

A: "I said it's in production. I didn't say we're building it."

Q:"How do you produce it without building it?"

A: "No comment."

Q: "Is this going to be just as uninformative as Arnow's interview?"

A: "Probably."

Q: "Why? The whole country's waiting for the answer! Are you serious, or are you kidding?"

A: "Serious."

Q: "Then why are you stalling?"

A: "You want a serious answer?"

Q: "Yes."

A: "To give Jake Arnow time."

Q: "Time?—For what?"

A: "He's a financier. If you can't deduce what he wants time for, you're not reporters."

Q: "He's—You're saying he's buying stock? That doesn't—"

A: "He's assembling control of the public companies we'll need to go into large-scale production. That's his special skill, not mine."

Q: "Can he do it?"

A: "He thinks so. That's enough for me."

Q: "What's new about this car?"

A: "He's told you."

Q: "Good gas mileage?"

A: "Excellent mileage."

Q: "The imports get good mileage."

A: "You haven't seen anything yet."

Q: "What's revolutionary about this thing?"

A: "The power plant."

Q: "This 'Star' will beat the imports?"

A: "It will do more than that."

Q: "You're not convincing us. You won't convince the public. Where's a model?"

A: "We've got them coming off the line, but the purpose is testing, not sale as yet."

Q: "Where is this line?"

A: "We'll explain that later."

This was all the information Mr. Storch would reveal. There have been no known models, no photographs, and no real explanations. Both Arnow and Storch appear serious. Both have formidable reputations in their fields. The consensus of reporters who heard them is that either they are bluffing for some unknown reason, or are actually onto something so big that they feel no need to explain.

Meanwhile, the Stagpression goes on.

 

Tokyo, October 23. Asked about the rumors from America, NKF head Setsui Tamizake replied, "It's a nice dream, but it isn't possible. We have the best, and we improve constantly. Even our sales are slow."

 

Detroit, October 24. CM today began recalling workers to its "A" car production plant.

 

New York, October 24. Auto, steel, and rubber shares rose here today from the opening bell without a break. No-one has an explanation.

 

Silicona, October 25. A caravan of trucks today pulled into the huge Storch LCJ lot, crossed one by one to a loading dock covered by an enormous tent, and backed inside. The truck convoy is being guarded by the state highway patrol.

* * *

London, October 26. Observers here are convinced something is astir in the United States. A heavy flow of investment funds to the U.S. is reported.

 

Detroit, October 27. More workers are being recalled to the "A" production line.

 

Detroit, October 27. The head of a California truck convoy reached the main CM plant at 4:12 this afternoon under heavy guard.

 

Detroit, October 30. Representatives of major U.S. banks are reported meeting today in the main CM plant.

 

New York, November 1. The stock market continued its vertical rise, passing the 400 level.

 

Detroit, November 3. The "A" line here is being lengthened. It is reported that the truck convoy carried equipment to add to the line at crucial points.

 

New York, November 4. A financial reporter has managed to obtain access to information regarding stock market operations of persons believed acting for financier Jacob Arnow. This information reveals heavy purchases, at recent severely depressed prices, of shares in the giant automaker, CM; in suppliers of parts for CM; in certain chemicals manufacturers; in manufacturers of road-building equipment, tire manufacturers, and related companies; in many almost-bankrupt auto supply firms, and in some actually in bankruptcy. Arnow evidently sold, earlier, large holdings of oil stocks. The result is that he appears to have built up an integrated auto-building empire, in some respects almost comparable to Henry Ford's in the early nineteen-hundreds.

 

Tokyo, November 17. Giant NKF Auto Industries today reported a strong sales increase in the last month, outside of the U.S. NKF president Tamizake explained, "We have benefited from the American news reports. People hear of an economic upturn coming, and feel they can buy a car now. Naturally, they buy the best car at the best price—ours. Except for the Americans. Out of patriotism, they are hoping CM and Arnow will come through, somehow. Personally, I doubt it."

 

Detroit, November 18. The first Detroit-built "Star" automobile rolled off the "A" assembly line at the CM main plant here at 10:01 this morning. A dark-green compact front-wheel-drive station wagon, with reclining front and folding rear seats, this car did not look like a revolutionary vehicle to watching reporters. But in the brilliant autumn sunlight, Frank B. Service, president of CM, walked across the huge freshly surfaced parking lot to the car, removed the cap from the fuel tank, thrust in a flexible measuring rod, and drew it out still dry, showing that the tank was empty. He next took from an assistant a one-pint can, took the top off with a Swiss pocket knife, and handed the can around amongst the reporters. What was in the can looked and smelled like ordinary twenty-weight motor oil. Mr. Service emptied this can into the tank, and slid into the front seat. The car made no starting noise, but merely slid forward silently, with a faint crunching sound of occasional dirt particles under the tires. Mr. Service twisted the steering wheel, tied it with a short length of cord, apparently to a grab bar on the passenger's side, and jumped out. At last report, five hours after starting, the "Star" car is still circling silently.

 

Detroit, November 19. The only noticeable change in the Star vehicle, after twenty-two hours, is that the finish seems to have grown darker in the sunlight, eerily matching the dark surface of the newly refinished lot. The car now looks an intense jet-black, unusual in that it is a very flat finish without noticeable reflection. Nothing has been added to the fuel tank since that first pint of what looked like motor oil.

 

Detroit, November 20. The Star is still circling. The only change since it was started has been an occasional correction in the steering by a smiling workman stationed here for the purpose.

 

New York, November 21. Inventor Edwin Storch today announced further details of the Star's sales plan. The news conference, attended also by European and Asian reporters, revealed several staggering surprises, including the vehicle's price, announced by Mr. Storch:

A: "We're pricing it from about $5,000. The standard model will be $4,999 before taxes."

Q: "What?"

A: "Five thousand dollars apiece—for the standard vehicle in the A-body style. We have plans for a later Star of our own design, which will probably sell for $8,000 to start.—Later, we hope to lower the price."

Q: "Did you say five thousand for the A-body car?—Which is loaded with new technology?"

A: "Right."

Q: "How can you afford it?"

A: "First, volume production. Orders are pouring in from all over the world. Second, a rise in the value of the dollar. Third, a special road-surface program that will proceed at the same time as the car sales."

Q: "Why should the dollar go up?"

A: "Auto exports. Lower oil imports. We expect Star sales to directly cut into oil sales."

Q: "Because the Star uses less fuel! Wait, now—They can just cut oil production, again, and charge the same amount!"

A: "No. We no longer need their oil."

After the shouting died down, Mr. Storch continued:

A: "We no longer need gas for auto fuel. Our own production will handle other uses. Therefore, oil prices are going down. If they want us to buy, they'll have to compete with our own production."

Q: "The road-surface program you mentioned—What's that?"

A: "A special reinforcement and surface treatment. We'll offer it to every city, state, village, county, and town, at a reasonable profit. At first, we expect to suffer a loss on our vehicle sales; but once enough of our vehicles are in use, we expect to sell the surface program all over the country, and, in time, all over the world."

Q: "How do you figure that?"

A: "Cars are owned by adults. Adults vote. Where they don't vote, they still make their desires felt in one way or another."

Q: "Where's the gimmick?"

A: "Long-term, the cars won't run reliably without the road surface treatment. Because what we're selling rests on two related products. First, a greatly improved storage battery. Second, a photoreactive coating capable of being applied by molecular spray, using a special process to form, in effect, a complete layer of photocells on the auto's surface. The car is then constantly absorbing light and charging its battery. But suppose you exceed its capacity?"

Q: "Yes. How does this road treatment help?"

A: "We lay down this same general kind of surface on the road itself. Embedded in the surface are thin strips that define the lanes for cars equipped to sense the strips; all Star models come equipped with the sensors."

Q: "You are saying the road becomes, in effect, an endless series of photocells?"

A: "Why not? Why waste all that road surface? There are two-, four-, and six-lane highways roasting in the sun with hardly any traffic a good part of the year, or a good part of the day for almost all year. The problem is to accumulate that energy. Another problem is to transfer energy throughout the system. Why have people stranded in Montana and overflowing with unused energy in New Mexico? Once there's a continuous road surface from one region to another, the transmission layer helps equalize that available energy. The entire hard-surfaced road net accumulates, stores, and transfers energy to vehicles using the net."

Q: "Won't the traffic wear the surface off? It'll be all over the road."

A: "Star cars sense the location strips, and spend most of the time in readily predictable lanes."

Q: "So—You'll sell the vehicles at $5,000, say. Then, when there are enough sold in any given territory, your customers will vote for an improved road surface locally?"

A: "Now you have it."

Q: "And when adjacent sections are joined, the energy will flow from one section to another?"

A: "Yes."

Q: "What about trucks?"

A: "We expect the first Star truck to come off the line in about six months."

Q: "This surfacing material is a paint?"

A: "No, it's a durable surface layer, laid down by a series of precision spray deposition devices. It is a complex layer with an exceedingly durable surface."

Q: "Durable?"

A: "Yes. But not everlasting."

Q: "So it has to be replaced, patched, or refinished, from time to time?"

A: "Correct."

Q: "How does this work in the north, with road salt, snow plows, and so on?"

A: "The photocell, storage, and transmission layers work, though of course there's much less energy accumulation than on clear roads in summer. Bear in mind, we intend to be coating the road surface, making the tires, and building the cars. Every part fits together. It can be done a lot easier with unified design of all components."

Q: "Those first Star cars we couldn't find? What were they?"

A: "Conversions of conventional cars, for test purposes."

Q: "That pint of oil, or fuel, in the tank of the first 'A' Star car? What did it need fuel for, anyway?"

A: "The car has a small emergency engine, in addition to our type of storage battery. If we'd needed it, we'd have started the generator."

Q: "Why do you need a generator?"

A: "Some people live on dirt roads. Our layer won't work on a dirt road. There are also going to be places not yet joined up to other parts of the country. How do you charge the battery? You can't rely for sure on the local utility. It may already be overloaded. That's the purpose of the engine. In emergencies, you start it up, and it charges the battery."

Q: "So the fuel cost—"

A: "In ideal circumstances, the fuel cost is nil. Eventually the battery will have to be replaced. The car surface is durable, and with reasonable care should last indefinitely. The road surface is also durable, but subject to wear, and will have to be redone at intervals, depending on usage."

Q: "I still don't follow how you charge this battery, unless you run the car's own generator."

A: "If your local utility isn't overloaded, you connect the car to a battery charger overnight. We have a special charger you can buy, if you want."

Q: "This is only till the roads are resurfaced?"

A: "Right."

Q: "The sun shines on the road, but how does the energy get from the road to the car?"

A: "In the right circumstances, at slow speeds, we can recharge the car on the road. We can theoretically do this at high speeds, but there are complications. What we expect is a chain of charging stations on or near the highways, possibly based on an arrangement with the present oil-company filling stations, which will receive the energy from the transmission strips, and quick-charge the battery for a fee. I might also mention our Star-lite conversion."

Q: "What's that?"

A: "Photolayered roof and siding panels for garage and, perhaps, house use."

Q: "Why 'perhaps'?"

A: "Not everyone wants a flat-black house."

Q: "It will charge the battery?"

A: "Right."

Q: "You're not planning to run the electric utilities out of business?"

A: "We expect to cut into their business in some ways, and increase it in other ways. The overall effect for their customers and ours is lower energy costs."

Q: "Resurfacing is where you expect to make the real profit?"

A: "Right. Bear in mind, if you've got a well-made road, our surface layer increases its durability, to lengthen the life of the road."

Q: "Where it works, then, you derive your energy directly from the sun—Which, incidentally, is a star!"

A: "Yes. That's another reason for the name."

 

Oil City, Sultanate of Tazar, November 23. Tazar today slashed its oil price all the way to twenty-one dollars a barrel.

* * *

Zurich, November 24. The dollar strengthened dramatically against all major currencies, as word reached here that work is already beginning to convert the gigantic U.S. road net into a nationwide solar-conversion plant.

 

San Francisco, November 29. Setsui Tamizake, dynamic head of ailing NKF Auto Industries, arrived here today to seek licensing agreements for the deposition-photocell process. A smiling Jacob Arnow met Mr. Tamizake at the airfield.

 

Honolulu, November 30. Some liquidation of foreign holdings is reported under way here, to help raise money for the licensing fees on the Star photocell process. One property reported to have changed hands was the Interislands Restaurant and Hotel chain, believed sold by Oceanasian Development to Jacob Arnow.

 

San Francisco, December 3. Setsui Tamizake, dynamic head of ailing NKF Auto Industries, left today for Tokyo, looking somewhat pale, but carrying the necessary licensing agreements for the deposition-photocell process. A genial Jacob Arnow accompanied Mr. Tamizake to the airport.

 

Silicona, Calif., December 17. Edwin Storch, inventor of the deposition-photocell process, was cornered by reporters on the way to his car in the newly photosurfaced company lot:

Q: "Mr. Storch, will this boom in Star vehicles last?"

A: "We think so, because it's an honest bargain. Meanwhile, we're making the pilot model of a still more durable vehicle with especially useful features."

Q: "If your car is too durable, there go your replacement sales."

A: "I got a little tired of cars wearing out every three years, didn't you? The idea is to give solid value, not plant a suction pump in the customer's wallet."

Q: "You'll cut your bottom line, won't you?"

A: "We haven't forgotten the bottom line. But there's another line you don't want to forget, either."

Q: "What's that?"

A: "The bottom line is the gain you get. The top line is the gain you deliver in return. If you provide the customer with a buy well worth having, you've taken care of the top line. That doesn't guarantee a profit, but Ford, Edison, Bell, Land, and a host of others have done right by the top line, and everyone was better off because of it. Naturally, the bottom line is important. But there needs to be something on the top line first!"

 

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