New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-16
Cain in Automobile
Industry Indicated
By General Motors
Report for 1919 Likely To
Be Excelled This Year:
Net Profits Show Big In.
crease: Sales Growing

The rapid recovery of the autoro-
bile industry to peace time basis and
the great demand for motor vehicles oe
all sorts that prevailed last year are
indicated in the 1919 annual report of
the General Motors Corporation, iugt
issued. This showed the largest earn
Tngs in the history of the company
with prospect of an even greater tota
for the current year. w. c. Duran,.
president, concerning the outlook. in
forms stockholders:
There is no diminution is the de-
mand for your product. the number o.
passenger cars, trucks and tractors
sold for the first quarter Of 1920 to
March 81. being 1879, as compared
with S2,456 for the cor, esponding period
of the previous year, an increase O,
45.2 per cent. The net profits for this
period, before deducting Federal taxes
are estimated at upward of S26, $500
O0O"
The 1919 surplus. after after ali
charges including dividends on the
preferred and debenture stock, was
S55,792.972, equal to $685. share on
the $153,411,0 900 common stock out
standing, compared with approximately
50 share earned on $147,379 800 COM
mon stock in 1913.
Net sales OF the corporation and it.
subsidiary companies for the year
were $500, 676,694, against $32s.0i4. ,5s
in 1918, an increase of S1S3.631 .93S. or
56.3 per cent. The number of passenger
cars, trucks and tractors sold was 40s.
1853, compared with 246,S3l the pre-
cedlng year, an increase Of 6iJ por
cent.
Net profits. after dcductng all ex-
penses of manufacture, selling and ad-
ministration, ordinary taxes, deprecia-
ton, employees bonus stock, employees
investment fund and allowances TO
800, 517 $40, contrasted with $35, 504.3.s
in 1918. Federal taxes and extraor-
binary expenditures absorbed $4,000
600 of the net profits, leaving a bal
ance available for preferred and de-
benturc dividends of $60,5l7,5l9. an
increase of $45,126.491.
Net working capital of the corpora
ton, as disclosed by the balance sheet
of December 81, 1919, amounted to Sl5S.-
$4,000. Total current assets were
$215,S24,7S5 contrasted with current
liabilities Of $56.1s0,402 Notes pay
able of S6,812,31S, the report said, rep
resented $4,o74,11S borrowed by sud
sidiary companies and the balance OF
!
debtedness assumed by the company
in the purchase of properties
Other Indebtedness Of the company
at the close of the year consisted Of
current accounts payable of $37 ,S46,3l3
and $11 ,521,770 liabilities accrued but
not due, for pay rolls, ordinary taxes.
etc.
while it will be seen from the
above" says Mr.. Durant, that the net
working capital has been increased
during the year by $S.S52.4 Az, attention
is called to the fact that the increase
in net working capital, exclusive OF
amounted to 37,491,2 7l. The amount.
$28 ,S52,01S, invested in United States
government bonds in 1918 and Temporal
rily carried in working capital. was
converted during 1919 into cash and
the proceeds used for new construc-
ton, as was intended"
The report explains that the stem
notes payable account Fisher Body
Corporation stock purchase repre-
sents the balance due on account Of
this purchase The total cost Of the
stock was $27 100000 payable over a
period of five years
The pay roll of the company foi
1919 totaed $1O4, $3.50, 900 The number
of employees in its service at the end
of the year was $3.50. compared with
49,11S at the close of the year pre-
ceding. The number of stockholders.
the report said. is in excess of 2i,l00,
of whom $3.50 are employees.