The Sun and the New York herald., 1920-04-16
GENERAL MOTORS
PLANS STOCK ISSUE
Intends to Raise 100000, 900
by Sale Of 100000
New Shares.
---- -------------
REPORTS INCREASED NET
Income Rises to S55,792,972
in 1919, Against S12,905,-
0G3 in 1918.
REPORTS INCREASED NET


VIII &C., and an increase In profit and
losb surplus from S36,iOS, g37 at the be-
ginning OF the year, TO $7S,G41,S97 at Its
close. plans to raise SEQ, 100000 by sell
ing 100000 shares of its new stock to
stockholders at $50 share. According
20 information obtained In authoritative
quarters the directors will meet this
afternoon to adopt q resolution Offering
TO stockholders the opportunity to sub
scribe TO the new stock 20 the extent
OF 20 per cent Of their holdings. At no
cost To the company the arrangements
are already completed, II Is understood,
for the underwriting OF the new issue at
| $40 share.
In view OF tn fact that the annual
report shows a net working capital OF
! Si5S,754, sol, against $l49,902, ,029 year
! ago, the financial district awaits an an
nouncement as to the purposes for which
the new working capital will be used.
i Rumors to the effect that General Mo-
| tors had acquired control OF the Pierce
| Arrow Car Company were afioat yester-
| day and other companies were men
| toned, but the only advance information
! that could be obtained yesterday was
the statement OF the plans for raising
| 100000, 600. With the issue of 5000, 600
new shares General Motors would have
| outstanding SlS3,411.000 OF capital
stock, which will be increased by stock
| dividend pnymeiits recently announced.
/ Not only did General Motors earn net
| income after preferred and debenture
| dividends of S55,792,972 in 1919, against
Sl2,s0D,063 in 1918, but w. G. Durant
| president OF the corporation, said in the
| report that for the three months ended
March 81, 1920, the net profits before
| deducting Federal taxes were estimated
at upwards Of $26,500, 900. He reports
also that the number of passenger cars,
trucks and tractors sold for the first
| quarter OF 1920 were 1879, which is
an increase Of 45.2 per cent. from the
S2,i56 sold in the corresponding period
of 1919. 1t is probable that the current
Increase In business, with Mr.. Durant
stating that thereis no business diminu-
tion In the demand for the corporations
product. accounts in large measure for
raising additional working capital
The year just closed, Mr.. Durant says
in the report. was the most sccessful in
the corporations history, notwithstand-
Ing the difficulty experienced in obtain
ing certain materials and shortage of
freight cars for shipping the corpora
tion's product, The net sales OF the
corporation and subsidiary companies in
1919 amounted to $509,6T6695 Com
pared with s326.044,756 in 1918. the in
crease was SlSS,631,93S. or 563 per
cent The number of passenger cars,
trucks and tractors sold was 406l5S, an
increase of 64.5 per cent. from the
2i6.S34 sold in 1918 Payrolls for the
year aggregated $104,3S0,00e, with the
mi nf Aln
$3.50, against S9,l1S at its, beginning,
The number OF stockholders is 24,i00, Of |
whom $3.50 are employees.
The following tabulation compares the |
income account for 1919 with that OF |,
the preceding year;
1919 1913.
NET profits for year after !
daducting all expenses Of -
manufacture Qncludirg
maintenance), selling and
administration, as well as
ordinary taxes, Insurance.
depreciation (s6, So. $50 O3
in 1927 Of plant and equip
mem, employees bonus
stbck. employees invest
ifent fund and allowances
90 employees on houses $50 5I7 5l9 &55 J4 bT6
Provision for Federal taxes
and extraordinary eXpen-
ditures .................... OoOoo 600 % 1855
$5O,5l7, ,5ls SIS, Ssl, ,Oes
General Motors Corporation
proportion thereof. $50 OO5 ts4 Si4 SzS $50
Preferred dividends for II
months at rate Of ga. ST. 032 57s ST. iso aOI
Debenture dividends for l.
months at rate OF So. S.ls0l36 739 500
y A22,5i2 I,s2o,4G
Undivided profits for 1s
months SIS, ss,s7i 81, 1905 os,
Percentage earnings on
tne STOCK 1874 30
The report says: The net working
capital as shown by the balance shees
0; December 81. 1919, amounted tp sl5s,-
1880 The following is a comparison
Of working capital on December 81, 1919,
with that OF 1918:
Current assets: 1919. 1918
Cash in banks and on
hand ..........,.........: sis.2s1, 200 ssOssss2i
bonds .......%..,-.... 2l9.2ls 2s,S52OB
Marketable securities. go. 1884, IL, ,304
Sight drafts against B-L
Due from Z. s. Govern ~
nnent on war contracts. 30iSS 1906, ,62S
Notes and accounts receiy
bls,-...,....,............. $.4H.s1 1886, $50
Inventories at cost or less Us 696 65l 81 l31 512
|
Total current assets,. ;e15, ,s247 7S5 sss. .H5,s2s
Current and accrued liabilities
Current accounts payable. So, SIS sis SIS 45s ais
Notes payable. ............. 6,S12 3B 10,S02, l5i
Taxes, pay rolls and sun
dries accrued, not due. n,52l770 3,7es, ,S65
s5siso.4Os sB.os5,sss
3lSs.sti, ,sS2 $40, 800. .tsI
From which deduct amount
reserved for two months
proportion Of dividend
on preferred and deben-
ture stock payable Feb
ruary 1...,....,...,.,..... SS9S2 ass, ,ie3
Net working capital .$Iss .75i, 500 $40 s02 os
while 1t will be seen from the above
thar the net working capital has been