Evening journal., 1918-03-05
DgPOAIS Prepare
TOR AUTO EXPAHSI0F
Devote Energy After War
Through Joint Control
of General Motors
SUCCESS FOR DURANT
AFTER EARLY REVERSE

The New York Times says. The du-
pont interests. as represented in f. J..
onPont de Nemours and Companq, man
ufacturers OF explosives. are looking
ahead to the end Of the war; when they
plan 10 devote their means and energy
10 the expansion OF The automobile
Business. This significant information
was contained a few days ago in the
announcement made by. the General
Motors Corporation that the dupont
Company. together with W. c. Durant,
had secured the controlling interest in
the former corporation and in the
Chevrolet Motor Company. While de-
fails Of future plans were not made
uubIlo, II was possible 10 read between
The lines Of the General Motors state
ment that the dupont millions are 10
be used In the upbuilding Of the big au-
fomobile concerns manufacturing to a
scale greater than It has ever reached.
-The existing plants OF the dupont or
sanitation, when the making Of mill
sary explosives on a war scale is ended.
win devote a substantial part OF their
facilities 10 the manufacture Of prod
uots used directly In the automobile
industry. The powder organization
makes for one thing a substitute for
leaiher in large demand for motor cars
as well as paints and varnishcs which
are used widely by automobile builders.
Extraordinary Development Seen
The nrocess by which control Of the
General Motors Corporation has passed
into the hands Of the duponts and
Mr.. Durant brings to light an extraordi-
nary development In the activities and
financial operations OF this leading unit
Of the automobile industry. The nnal
step will be taken in about two months
when the Chevrolet Company VIII be
reconverted into a purely operating con-
rern divested Of its stock holdings In
ne General Motors At present the
Chevrolet treasury owns control Of Cen
cral Motors throush the possession Of
$50 000 shares n its stock. The physical
assets Of the Chevrolet Company are to
he boueht by General Motors navment
heinc in the for moi 2S26S additional
shares OF the latter corporation. In
order 10 provide this stock The Cen
eral Motors shareowners VIII he asked
10 authorize an increase OF the COM
mon stock can'tal from $50 6mo0 10
$50 mn OO0. After payment Is made to
The Chevrolet This comnany will own
782 se4 shares Of General Motors. which
will be divided amone holders Of Chev-
rolef stock on the basis Of one and
one-seyenth shares for each Chevrolet
share.
The duponts and Mr. Durant already
have control Of both comnanies. so the
result OF the transaction will be merely
10 make the Chevrolet organization one
~ tho manufacturing units Of Gene~"'
Motors and center the control in the
General Motors stock. The General
Motors preferred stock Is to be in
erea-ed. IN authorized amount. from
P20 100000 TO s5000OO00 making the
total capital OF the corporation $780,
100000
Overshadowing the growth OF the
General Motors Corporation in human
interest is the story which it tells Of
The vision and its fulnllment Of w
Durant. the original factor In the COM
pany. Back in 1910 two ycars after the
corporation was formed through the
snerger Of % automobile and accessory
companies, 70 looked as though the
structure was doomed to crash TO
earth. The ambition Of Mr. Durant 20
assemble many Of the leading producing
Concerns in q vast organization over
stepped itself
9Tsurti Of Money was Urgent
There was an urgent neeG OF money
10 carry on the business, and as the
automobile industry was not long out