For centuries--perhaps as far back as Homer--human beings have envisioned
the possibility of self-propelled land vehicles which did not run on rails.
In the fifteenth century, Italian painter Francesco di Giorgio Martini designed
a four wheeled human-powered vehicle (never to be built) and named it "automobile."
Experimental steam carriages emerged (and subsequently disappeared) in England
in the mid-nineteenth century. Then, toward the end of the nineteenth century
and in the early twentieth, both steam and electricity--already being used
to power other types of transportation, namely steam locomotives and urban
light rail--were considered plausible ways to power automobiles. Unlike
electric cars, steam cars never really enjoyed a heyday. Despite the great
interest in steam among manufacturers, including such entrepreneurs as Ransom
Eli Olds, the difficulty of making a steam engine small enough for the automobile
curbed public interest. The power source that came to the fore was the internal
combustion engine. Although electric cars initially dominated the market
within cities (they were quieter, easier to handle, and less obviously polluting),
gasoline-powered automobiles could go farther (electric cars needed to stay
close to recharging stations) and faster.
The earliest gasoline-powered automobiles had definite drawbacks: they were
rather dangerous to less technically-inclined motorists, and they were not
usable at all times of the day or the year. Even as manufacturers added
accessories to make the vehicles more practical and more user-friendly,
automobiles, on their own, couldn't mature into a full-fledged transportation
system. The gasoline-powered automobile couldn't enter into widespread use
without a constellation of complementary products and services.
1. Complements to the Automobile
For any form of self-powered wheeled-transportation other than railways,
the most obvious--and critical--need was roads to drive on. Automobiles
required an extensive system of roads, preferably with hard surfaces; in
the U.S., much needed to be done on both counts. At the end of the nineteenth
century, the American road system was practically non-existent, particularly
for purposes of long-distance travel, which for decades had been the province
of trains. Furthermore, when it came to road design, the needs of horse-users
conflicted directly with those of automobile users; the hard surface essential
for automobiles was dangerous for horses, particularly when wet. For the
automobile to 'win,' America's highways and byways had to be entirely rethought.
The demand for individualized wheeled transportation also was affected by
demographics. Both sparse population and the need to travel a significant
distance daily, for work or for other purposes, increased the demand for
automobiles. Changes in the provision of rural services, as well as the
rise of the suburbs, gave the automobile and its culture a significant boost.
Other automobile complements were useful only for those driving gas powered
cars. They needed fuel (gasoline) to be available, particularly on the road.
Additionally, care and maintenance had to be available if anyone other than
hobbyists were to drive gas vehicles. Thus, both expertise and products
for auto repair had to be readily available.
Finally, automobiles, even once they were being produced on assembly lines,
were fairly expensive; few individuals could buy them with cash. Widespread
automobile ownership depended on financing options that could relieve the
cash burden on the average customer.
2. Developers of the Complements
Serendipity
In some ways, good fortune set the stage for gas-powered automobiles before
they appeared as a mass-market item. By 1880, the Good Roads Movement, the
political will to create a national system of improved roads, was first
kindled by the League of American Wheelmen, an organization of bicyclists.
Bicyclists and motorists shared a similar conception of what constituted
a good road (a hard surface), as well as some similar care and maintenance
needs (roadside facilities, etc.). Cyclists played a major role in revitalizing
the dormant business of taking care of those who traveled the road--rather
than the rail--breathing new life into inns that had seen little business
since stagecoach days.
Gasoline-powered vehicles probably also received a boost from the fortuitous
discovery of enormous amounts of oil in Beaumont, Texas, in 1901. The discovery
came at a time when the demand for petroleum products was in severe decline
(as gas and electricity displaced kerosene as an illuminant) and gasoline-powered
vehicles were still a novelty (considered a potentially dangerous one) among
automobiles.
The Government
The late nineteenth century saw the birth of a new attitude toward national
connectivity. This new attitude was manifested in the 1893 establishment
of the Office of Roads Inquiry (which produced maps of improved roads) and
in the advent of Rural Free Delivery (RFD) in 1896, which created, for the
first time, a demand for roads which were passable year-round. On a local
(urban) level, too, a demand for road improvement was born as city governments
began using motor vehicles for "police work, fire fighting and street
maintenance." By 1916, urban and rural interests worked together to
produce the Federal Aid Road Act, also called the "Good Roads Act,"
which mandated spending a total of $75 million over five years, as well
as matching state highway money. This Act marked the beginning of a financial
and policy commitment to national roads. During the 1920s, mileage of paved
roads doubled, and four-lane parkways were born--and 60 percent of the improvement
was paid for by gasoline taxes.
Government (federal, state, and local) did more to create a national road
system than simply build roads, however. The government not only provided
the hard surfaces drivers needed, but it also made the roads safe for traffic
by instituting appropriate traffic laws and installing instruments for traffic-control,
ranging from simple stop signs to electric traffic signals, as early as
1914.
Once the new automobile infrastructure began to take shape, government at
all levels began to depend on it and, by depending on it, encouraged its
flowering. For example, since automobiles could bridge previously prohibitive
distances, they facilitated a consolidation of rural services, from schools
to mail delivery; as long as individuals were willing and able to commute
for them, these services no longer had to be very conveniently situated.
Much later, after the Second World War, when the maturing interstate highway
system had shortened the time of commutes by up to half, the Federal Housing
Administration encouraged workers to double the distance accordingly by
moving to new homes in the suburbs. To this end, the FHA provided mortgages
with 25-30 year terms, and encouraged banks to lend money to buyers of new
suburban homes (like the $6,900 homes of Levittown), snubbing older properties
on the grounds that "crowded neighborhoods lessen desirability"
and "older properties in a neighborhood have a tendency to accelerate
the transition to lower-class occupancy."
The Automakers and Their Allies
When neither government nor fortune alone provided the complements they
needed to get their product off the ground, manufacturers themselves provided
them, either on their own or by collaborating with one another or the government.
Early in the twentieth century, for example, the auto industry became aware
that mass auto ownership would require innovative financing options. Banks,
which were concerned about people depleting their savings by purchasing
cars, did not rush forward to provide credit to the masses. The auto industry
itself took charge, in a series of moves which revolutionized not only the
way Americans travel, but also the way they manage their money. Early on,
dealers eager to make sales facilitated the installment-selling of automobiles.
By 1911, Studebaker had stepped in to help its dealers through the installment
process. Four years later, the first auto purchasing credit company, Guaranty
Securities Company, was established by John North Willys for purchasers
of Willys-Overland cars. Months after its establishment, the Guaranty Securities
Company was reorganized and began financing installment plans for purchasers
of other manufacturers' cars. By the early 1920s, several hundred similar
companies had emerged, including the General Motors Acceptance Corporation,
GM's own credit agency.
In addition to the automakers themselves, other major corporations had much
to gain from the rise of the automobile. They, too, took it upon themselves
to provide related services which would make their core product more valuable.
Perhaps the best example would be the proliferation of filling stations
along America's highways, providing the operators of gas-powered vehicles
with a more convenient way to gas up. Prior to the advent of highway filling
stations (and the invention of the gas pump as we know it) car owners bought
gasoline in hand-held containers at stores that did not specialize in the
sale of gasoline. Often, these stores were not conveniently located, optimally
structured, or adequately stocked. Between 1907 and 1913, the 'gas station'
as we know it came into being, as oil companies developed such innovations
as 'drive-in' stations (which were useful as driving ceased to be a fair-weather
activity) and gas pumps (which were safer and cleaner than containers for
dispensing gasoline). After the break-up of the Standard Oil monopoly--which
took place in 1911, just as the demand for petroleum began to skyrocket--gas
stations emerged as a major locus for competition between the Standard Oil
companies and their new competitors. Standard Oil introduced the first pre-fabricated
stations as early as 1916, and in less than a decade they had become the
mode of choice for oil companies to make their mark on a territory:
Shell "invaded" the area between San Jose and Santa Barbara in California by building 8 bulk depots and 100 service stations in six weeks. District managers drove the area's highways picking suitable locations. Real estate men followed to buy or lease site, and were followed in turn by construction crews in relays to excavate and bury tanks, pour concrete foundations, bolt buildings into place, install pumps, and paint.
[E]arly owners of cars [had] learned by bitter experience what it meant to have a screw loose or a tire put out of business in a town where the supply stores did not sell that particular screw or that particular tire. . . . High maintenance and repair costs ate up many an automobile buyer in the early days of the craze. It wasn't the original cost, although that was high enough; it was the upkeep.
[O]ne of the most interesting features of the automobile industry is this example it has given to the world of efficiency and co-operation. We are not surprised at efficiency in the steel business or the oil business, because they are industries conducted practically by one man power; and if autocratic rule is not efficient, its last excuse for being right might appear to have ceased to exist; but to find several hundred different manufacturers with divergent ambitions, ideals and interests benevolently engaged in co-operative competition, justifies, it would seem, the optimism which sees the world as growing better.By Adam Brandenburger and Elizabeth Stein
Endnotes
1. "Automotive 101: Automotive History" (http://www.autoshop-online.com/auto101/histtext.html).
2. Jean Pierre Bardou et. al., The Automobile Revolution (Chapel Hill, NC: University of North Carolina Press, 1982), p. 23.
3. Stephen B. Goddard, Getting There: The Epic Struggle Between Road and Rail in the American Century (New York: Basic Books, 1994), p. 200.
4. Peter J. Ling, America and the Automobile: Technology, Reform and Social Change (New York: Manchester University Press), p. 6.
5. George S. May, "Marketing," in George S. May (ed.), Encyclopedia of American Business History and Biography: The Automobile Industry, 1896-1920 (New York: Bruccoli Clark Layman, Inc.), pp. 317-319.
6. John A. Jakle and Keith A. Sculle, The Gas Station in America (Baltimore: John Hopkins University Press), pp. 131-133.
7. Jakle and Sculle, p. 141.
8. Jakle and Sculle, p. 55.
9. H.L. Barber, Story of the Automobile: Its History and Development From 1760-1917 (Chicago: A.J. Munson & Co., 1917), p. 99.
10. Barber, p. 100.
11. Barber, p. 136.