PRESENT TREND OF VALUES. After the great rise in prices, the trend of values of the securities of motor accessory and tire companies, during the first quarter of 1917, was generally downward. During the past two years a large number of such stocks have been put on the market (see table 1 and 3) and a great deal of speculation has taken place, with the result that the market seems overloaded at the high prices at which the public has bought these stocks. At the time of the market reaction at the end of 1916, under various influences, motor stocks suffered considerable losses. A few prominent instances may be cited. Studebaker, which sold as high as 67 in 1916, sold down to 102. Chevrolet Motor, whose high mark in 1916 was 278, sold down to 120. United Motors, which sold at 95 in 1916, sold down to 42-3/4. Similar conditions obtain through most of the list. Among tire companies a few instances will show the same general downward tendency. Lee Tire & Rubber Company’s stock, which sold for 50-1/4 in 1915, is now selling around 23. Goodrich stock, which brought around 80 in 1915 and 1916, ranges between 51 and 58. The Kelly-Springfield Tire Company, which sold as high as 85-1/4 in 1916, now sells around 60. During the year 1916, the range of high and of low of 25 leading railroad stocks traded in on the New York Exchange was between 76 and 85. Twenty-five leading industrials for the same period ranged between 90 and 113. The range of all the motor stocks traded in during this time was from 119 to 231; while that of the tire companies was from 45 to 76. On the Curb, motor stocks in 1916 ranged from 39-3/4 to 57-3/4; tire stocks from 67 to 79; and accessories from 58 to 73, all of these figures representing average high and low of each class. POSSIBLE FUTURE TREND IN AUTOMOBILE INDUSTRY AS A BASIS FOR THE FUTURE OUTLOOK FOR 1917 ON ITS SECURITIES. As was stated in the opening introduction, economic conditions are perhaps the greatest factor to be considered in constructing any forecast for the operation of such an industry as that of the motor, motor accessory and tire group. These economic conditions have mainly to do with: (a) The increase of population, its effect reflected in increased registration, and automobile production. (b) The uneven distribution of automobiles in the United States. (a) Following is a chart which shows graphically the comparison between the growth of population, increased registration, and increased automobile production since 1911. _The following chart shows the rate of growth of automobile production and registration compared with increase in population:_ [Illustration: Chart]