In 1903, the Association of Licensed Automobile Manufac turers was formed to collect royalty under the Selden patent (U.S. No. Nov. 5, a smaller part to go to the patent owners, the rest for its own activities. Licences were to be limited to "good and reliable" concerns. The patent was claimed to cover any automobile, but many denied this scope, among them Ford, who was sued in Oct. 1903. The final decision, in Jan. 1911, holding the patent not infringed removed the obligation to pay royalties and broke up the association. The Automobile Board of Trade was then formed by the former licencees and all the former opponents of the Selden patent, except Ford. Among other activi ties, it sponsored the New York show. Another association, having many of the same members, sponsored the Chicago show. In 1913, these combined to form the National Automobile Chamber of Commerce, called, since 1934, the Automobile Manufacturers Association. Its patents cross-licencing agreement, whereby any member might use the patents held by any other member without paying a royalty, was established in 1915. It has been renewed from time to time and in 1940 covered patents issued previous to 1930.
Until 1909-12 the automotive industry was, in general, chiefly concerned with developing a product that at least would operate. Some cars, of course, were marketed in this period ; these in essential details were nearly as satisfactory as cars designed in recent years. During the experimental period, cars of every description were produced with alternatively chain, bevel gear or friction drive; bar, tiller or wheel steering; planetary or sliding gear transmissions ; and with the number of cylinders ranging from one to eight, with a few twelves and sixteens. The prejudice against a new and radical invention, poor road conditions, the comparatively high original cost, the cost of maintenance and the general unreliability of the cars, all tended to retard rapid intro duction of motor vehicles. The sporting phase of the automobile was recognized long before it was commonly appreciated that the automobile provides a thoroughly reliable, economical, comfort able and rapid means of individual transportation.
After 1909-12 the production of sufficient cars for a growing demand and marketing and distributing facilities became of great importance. Problems of time payments and the extensive pur chasing of cars on an instalment payment basis, trade in used cars, dealer organization and advertising have been demanding the attention of manufacturers, in addition to problems of quan tity production and engineering. During this period also the internal combustion engine has almost entirely superseded both steam and electric motors for propelling automobiles. The electric vehicle is confined, for the most part, to use for short distances in commercial service. The expansion and growth of the motor car has, in a large measure, proceeded abreast with the building of good roads, development of alloy steels and improvement of rubber. The need for rapid and reliable individual, or private, transport has existed for a long time; and when the automobile was recognized as fulfilling that need, its adoption was rapid not only in Europe and America, but in late years, all over the world.
The table in the first column shows the yearly production and registration of passenger cars in the United States.
Population Per Vehicle of the Leading Countries (1939) In Argentina . . ....... . . . 46 In Australia . ........ . . • 9 In Belgium . ........ . . . 35 In Brazil . . ........ . . . 281 In Canada . ......... . . 8 In England . ........ . . . 18 In France . ......... . . 18 In Germany ......... . . . 42 In Italy . . ........ . . . 93 In Japan . . ......... . . 389 In New Zealand ......... . . 6 Norway . . ........ . . 32 In South Africa . ........ . • 24 In Spain . . . ........ . . 196 In Sweden . ........ . . . 29 In United States ......... . • 4 (Automobile Manufacturers Assoc. Facts and Figures, 1939 Edition.)