The sun., 1919-04-14
GENERAL MOTORS
PROFITS DECREASE
Balance Sheet Has Enormous
Rise Because of Purchase
of Properties.
NET PROFITS S85,504,576
Earnings Of Company and It's
Subsidiaries for 1918 Are
S15,891,O28 Net.

4'cce
The income account OF the General
Motors Corporation in It's annual re-
port, Just made public. shows undivided
profits for 1918 of $12.905.063. after
payment of all charges. including taxes.
extraordinary expenditures, &C. and
dividends on the per cent. preferred
and on the per cent. debenture stocks.
Profits are equivalent to 1915 a share
on $147379,s00 outstanding common
stock, which indicate that earnings on
the common were less than dividends
paid. The average amount of common
stock outstanding during the year, the
report shows. was s9a.644.200. which
would make the profits equal to about
$3.50 a share, against s34.19 earned in
1917.
Net profits after deducting all charges
for maintenance, manufacturing ex-
penses, selling and administrative ex-
penses. ordinary taxes, depreciation and
insurance, were s35.504,576, while a fur
Their deduction for Federal taxes and
extraordinary expenditures aggregating
$50, 1855, brought 1913 net earnings
of the company and its subsidiaries
down to s15.391.o2s. General Motors
Corporations share of those earnings
was paid In dividends on preferred and
debenture stocks, leaving undivided
profits for the year s12.905.063.
The enormous increase in total assets
and liabilities. shown. IN the balance
sheet of December 81, 1918, is accounted
for largely by extensive properties ac-
quired by General Motors during the
year, including the assets OF the Chew
rolet Motor Company, the capital stock
OF the gainesville Machine Company, a
controlling interest in the Scripps- Booth
Corporation. the capital stock of the
Chevrolet Motor Car Company OF Can
ada all assets of the United Motors
Corporation. all preferred and common
stock Of the Lancaster Steel Products
Company and all preferred stock OF the
Harrison Radiator Corporation. Tho
total assets and liabilities advanced
from Sl33,7se,72+ to s2ss4s9,335 dur
ing 1918.
The current assets on December 81,
1918. totalled slSS,4l5,s2S, against $780,
275,577 in 1917, and current liabilities
at the close of 1918 were s33,025.336,
against s15,524.o54 In 1917. making
working capital on December 81. 1918,
sl49.902.029, against $64.554.766 work.
ing capital at the close of 1917. OF that
increase of ss5,347,262 in net working
capital s27,164,61o is the result Of the
purchase OF new properties.
Some Idea of the tremendous business
done by the General Motors Corporation
and its subsidiaries may be had from the
report showing that net sales Of all COM
panies In 1918 aggregated $326.044756
and that the number OF cars. trucks and
tractors sold during the year was 24S.-
he ha
gated S52.500,oo0. The employees in
the service OF the corporation and its
subsidiaries numbered 49,llS.
The corporation played an important
pant in the production OF war materials
the report shows. eighteen of its twenty
three operating units being engaged on
Government contracts. The gross value
Of products actually completed was
about s35, 100000. When the armistice
was signed orders and contracts In
hand aggregated more than $50. 600 900
The company had furnished more than
5000 chassis for ambulance mounts, a
large number OF automobiles for the
Quartermaster's Department. 2.52S Lib
erty motors and had orders for 10000
more when the arnlistice was signed.
Trench mortar shells were produced at
the rate OF 10000 a day.
THE outlook for the coming year IL
most promising" the report of w c.
Durant, president OF the company, con-
cludes. Since the signing of the arni-
stice and the subsequent liquidation OF
the war contracts, which your corpora
ton was engaged in, the plants and
facilities have been reconverted in an
incredibly short time to their regular
lines Of activity. and as a result the
manufacturing operations are considera-
bly, advanced. as Ia 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 deducttng
Federal taxes are estimated at upward
OF $40, 900. 900"
New Bonuses for Employees.
The report announces a new bonus
plan for employees, which, II declares, is
in no sense a profit sharing plan. In
that connection. the president says:
The corporation has adopted bonus
plan under which stock OF the corpora
ton is distributed each year as a re-
ward to its employees, including en-
ployees of subsidiary companies. who
have contributed TO its success in a spe-
cial degree. by their inventions. ability.
industry. loyalty or exceptional service
II is hoped thereby not only TO compeu-
safe services rendered. but also to en-.
courage further efforts by making its
employees partners in the corporations
prosperity.
Under the bonus plan the amount
which may be distributed each year Is
determined by taking 10 per cent OF the
net earnings OF the corporation after de-
Quoting therefrom an amount equal to 6
per cent on She capital invested. The
bonus plan Is in no sense a profit sha--
ing plan in the meaning of that term as
generally used. There was awarded for
1918. under this plan, a total of 24.334
shares OF the common capital stock Of