New-York tribune., 1919-04-14
General Motors
Profits Slump
TO 8.75 Per Cent
Balance of Common Heavily
Reduced i'm 1913 Owing
to Large Charges for De-
preciation and Taxes

Net profits of the General Motors
Corporation in 1918, after all expenses
and Federal taxes, were $15,391 OPS, of
which $14,825, $50 applied to the hold
ing company proper. After allowing
for preferred dividend requirements of
S1,180,901 and a disbursement of $780,
566 on the new debenture stock ere
ated in the last half of the year there
was surplus of $12,905.O .O63, equiva-
lent to S.75 per cent on the $147.379,-
800 common stock outstanding at the
close of the year. This contrasted
with 3419 per cent earned on $76,S73,-
300 common stock in the hands OF the
public on December 81, 1917.
The annual report, out to-day, dis
closed that more than $20000,00O was
charged off last year for Federal taxes
and extraordinary expenses. This item
IN l9lI amounted to only S6,90l ,889.
SO far as actual profits before taxes
and depreciation were concerned, there
was little difference on a dollar basis
between the showing of 1917 and last
year, when the net sales showed to-
tai of $269,796,S29.
Sales S326,Oli,7J6
Net sales of all companies under the
control of the General Motors Corpora
ton in 1918 aggregated $32G,04l,7 1856.
The number of cars, trucks and tract
ors sold during the year was 2A6, ,S3t
The amount set aside last year for de-
probation was $2,6lG,3iA.
The balance sheet showed current as
sets at the end of 1918 of $l83,A15,S2S.
while current liabilities were only $33,-
o25,3@6, After rcscrving two months
proportion of dividends on the pre-
ferred and dcbenturc stocks, payable
Fcbruary l, there was left as working
capital the sum of $119.902 029, com
pared with $64 ,55J ,766 at the end of
1917.
OF notes payable, s1O,SO2,154, found
IN the liabilities column, the Pc
port stated that $7,000,000 represented
bank Borrowings on account of war
business, which has been paid since
the end of the year. The balance of
$3,S02,1 154 covers indebtedness assumed
IN the purchase of properties during
the year.
The other indebtedness OF the cor
poration on December 81 consisted Of
current accounts payable Of S1S,453,-
90, composed wholly of obligations
for merchandise, and S3,769,SG5 for
taxes and other items.
War Work of Company
Commenting on the manufacture of
war products in 1918, w. c. Durant.
president, stated in the company's re-
port that of the twenty three operat-
ing units eighteen were engaged on
government contracts. The gross value
of the products actually completed was
approximately $35,o00,o00. At the time
The armisticc was signed orders and
contracts in hand exceeded 500 900 900.
The company furnished 5000 G. NJ.
T. model sixteen chassis trucks for
war purposes. The quartermaster's
corps was supplied with a total of $3.50
Cadillac cars. while 1,157 Cadillac en- en-
gines were sold to the ordnance de-
partment for its two and one half ton
artillery tractor. At the time the
armlstcc was signed there we're or
ders on the company's books for TO-.
200 Liberty aircraft engines and 1928
Liberty engines were actually complet-
ed and delivered.
1T IS gratifying to report" said
Mr.. Durant, that war product opera
tions were in such condition when cam
ce!latlons were desired that at this
date substantially every claim against
the government has been satisfactorily
adjustcd.'
Outlook "promising"
In business forecast Mr. Durant
said the outlook for the current wear
is most promising" and added:
"Since the signing Of the armisticc
and the subsequent liquidation of war
the plants and facilities have
been reconvcrted in an incredibly short
time to their regular lines of activity.
and as result the manufacturing op-
erations are considerably advanced, as
is evidenced by the showing for the
first quarter of 1919; the number of
cars, trucks and tractors sold to March
81, 1919, inclusive, being S2,456; the
net profits before dcducting Federal
taxes are estimated at upward of 500
600 900"
The number of stockholders Of the
corporation is now in excess of 10000,
Mr.. Durant stated.