New-York tribune., 1918-02-22
n,l Points 10
Effect Huge
Motor Deal
VIII Merge Chevrolet and
General Motors
Companies
TO Increase Capital;
Elect New Directors
Want Larger Outlet After
War for Machinery and
Investments

kflTGStksIS&SeS
Control Of the General Motors Cor
noration and the Chevrolet Motors
Compsny, the combined equipment Of
which represents the largest segment
n the automobile industry OF this
country. has been acquired by f. J. du
pont dc Nemours interests by recent
purchases OF large blocks of stock
holdings in both companies.
A merger Of the two companies. in
accordance with 4 recommendation
made by the directors Of the General
Motors, at meeting yesterday. is ex-
pactei TO receive the carly approval
Of the leading stockholders. it is
propased to effect the consolidation by
purchasing the assets Of the Chevrolet
Motors Company, exclusive Of its pres
ent holdings in the General Motors
Corporation. paying therefor 2S2,6S4
shares of General Motors common
stock
Seek to Increase Capital
As part of The plan Of consolida-
ton the General Motors board OF di
rsctors have also recommended that
enlarge the capital Of the
company by increasing the amount of
authorized preferred stock from $2o,-
100000 to S50 ,0eO 00o. and that Of com
mon stock from SS2.600,Q90 to $780,,
o00,900,
At the present time there are 100000
shares Of General Motors common stock
in the treasury of the Chevrolet Motor
Company. With the addition Of the
shares to be paid over by General No
shares, or II shares of General Mo
tors Corporation common 7ck for each
share OF the Chevrolet Company now
outstanding
The acquisition # these two i'm
portant factors in l.. automobile IN
dustry by the du Pont de Nemours
interests is part OF the latter's policy
IN industrial enterprise, into which q
large part Of the capital and organiza-
tlon~now engaged IN military work can
be transferred when the ending of the
war will make them available for more
stable manufacturing business. This
element Of the transaction was pointed
out specifically in the formal an
nouncement made by the du Pont de
Aemours company yesterday.
Little Change in Policy
There is to be no great change either
n policy or management 0f the auto
mobile concerns as result of the
amalgamation. The announcement sent
out by representatives of the du Pont
de Nemours interests says one of the
chief assets of the automobile industry
Is its remarkably efficient organization.
". {. Durant, present head Of both
companies, viii continue IN that capac-
ity. He also remains one Of the largest
individual stockholders. The majority
OF the directors, toe, OF the General
Motors Corporation viii continue, as
they are now, to consist of Mr.. Durant
as chairman and the managers OF the
chief departments of the company
The du Pont de Nemours interests
were represented on the board of di-
rictors OF the General Motors Corpora
ton prior TO yesterdays election by
j. A. Haskell, j. j. Raai1ob and p S
du Pont. Irene du Pont and Henry
+. du Pout were added to the board OF
directors yesterday. II. NJ. Birksdale
vicc-president. of T.. |. du Pont, dc
Nemours u Co, is now and has beer
a dlrecto" Of the Chevrolet Motor Com
pany.
New finance and executive commit
tees were formed ycsterdayy. On The
former j. J. Raslob becomes chairman
~ place of Louis g. Kaufman, who re-
signed, but Iro viii continue as q
director OF tie company. The othei
members arc T. S. du Pont, II. Y. du
[onj, IreHe du Font, ". {. Durant
j. a. Haskell apG j. H. Clement.
he executive committee as now con
sututed consists Of ". c. Durant
chairman, and W. 2. Chryslcr, 4. II
Iolilns, W. L. Day, J. A. Haskell, +
YER Linden and f. w. Warner
Stock Goes Up
While the large purchases Of stocl
made by the du Poont interests have
heen mostly by private contract, oper
trading on the Stock Exchange foi
several weeks has been Of a character
10 suggest that a large accumulation
oi General Motors shares was takiug
place. On Wednesday OF this week tn,
common stock sold above 1872. 1t re
acted Yesterday, closing u tractor
above l29. Early last November, wher
tae stock market as 4 whole was in {
Sl&te OF extreme depression, Genera
no iofs common sold as low at ~.
ihc $4,000 shares of General Motors
common, now owned by the Chevrolet
company are carried at SI24 a share.
Among the subsidiary concerns O.
the General Motors Corporation ar.
the Buick, Cadillac, Olds. Rando]p}
and Oakland Motor Companies ane
the Reliance Truck Company. Ths
riants of the various subsidiary com.
-s.an1es occupy 452 acres of ground VIII
Door space o. more than 5000 90
square feet. Tho annual productiy
capacity is upward Of $4,000 cars.