New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-10
Demand for Autos
Will Long O1tstrip
Supply, Will US Says
Exports Expected To Be
Large This Year; Com
pany Failed to Earn
1919 Common Dividends

The outlook for the automobile in
dustry IS very bright. declares ]. N.
WHY'S, president Of the Willys-O over
land Company, IN his annual report to
stocknolders, as famine demand for
cars exists all over the world and can
not De met for long time to come.
Replacement demands alone for auto
mobiles, he said, Will hereafter be
enormous.
The company in the year ended De-
cember 81, 1919. returned net earn
lhgs, alter repairs, maintenance, on
penses, but befol> eeducting expenses
OF developing ana pcrfecting new
models, Of s6,S0S,737. interest CHARGES
aggregated S1,471 ,671 and reserve for
renewals and depreciation, $1,S94,687.
Alter sl,707 iii had been deducted for
frepiacements, balance available for pre-
ferred dividends was S1,735,2 Hold
ers Of the preferred stock shared ST.
"52.I32 IN dividends, after which a
; w. o36 balance remained for common
dlVldends. This amount fell short Of
the 1919 common disbursements by ST.
527,321.
Incoming domestic and foreign bust
ness" Mr.. Willys's statement says,
both are on huge scale. Export
orders are three times as large as a
year ago and promise to continue
equally heavy, while large market is
opening up in India and the Far East.
10 take advantage Of the European
market our company has recently
formed an alliance with the Crosslcv
interests, of Manchester, England. for
the manufacture and distribution of it's
popular priced car in the British and
Colonial markets. For all of these
reasons | anticipate an active year in
la2o, but. at the same time in view Of
-;
policy of the company VIII be con
sservatlvely directed toward the re
auction Of inventory and the elimina
Non of its floating debt.
present conditions are highly sat
lsfactory, as production has reached
900 cars daily, and, in the near fu-
tnre, daily schedule of $50 cars viii
De met and consistently increased as
material conditions viii permit. The
first quarter of the year Win show an
pr9XImately 10000 cars turned out,
which is not quite so per cent Of the
total production in the year 1919, so
that for the full year 1920 there is
every reason to expect a Anal produc-
ton in excess OF 10000 cars-the
manufacturing goal for 1920 being
100000 cars. Estimated sales for the
var should be more than double those
OF 1919 which were S37.500 0O0."
close OF the year the company was
carrying relatively heavy inventory
by virtue Of the fact that throughout
the period OF It's inactivity in 1919 it
continued to receive large supplies of
raw materials in preparation for the
current heavy production. This sup
ply of raw and semi-fnished materials,
he said. though invaluable at this time
OF shortage and rising prices. has
nevertheless entailed heavy bank Dor
rowings. These Mr.. WHY'S explained,
VIII be largely liquidated through the
sale of additional common stock and
through the natural processes of man
ufacturing, so that by midsummer it
is the expectation Of directors that
the compaay's floating stock will show
a heavy reduction.
Listed among the companys labili-
ties are $l0.00O,000 in 7 per cent Gu
mulative preferred, $4,000, 900 7 per
cent cumulative convertible preferred
and $50 00o,000 common. all Authorized.
The company also carries S8,893,9OO in
7 per cent cumulative preferred stock
outstanding, together with s14,O44,8OO
! per cent cumulative convertible pre-
ferred and SAL ,613, 900 common stock
issued and OUTSTANDING