Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-01-14
BILLIONS INVESTED
IN MOTOR INDUSTRY
automobile Securities Have
Come Forward With Leaps
and Bounds in Few Years
SOME GOOD EXAMPLES

the financial world than the automo
bile industry with its ever increasing .
accessories. The bilious of dollars in
vested in capital in the manufacturing /
OF motor vehicles in the Uuited States
Is living monument of the pheuom
cusl growth of this division of our .
country's manufactures At The same |
time the uutotalcd sum Of dividends |
and interest paid is proof of not ouly |
the unparalleled prosperity of the ven /
ture, bat also the sound character Of
the Investments
The securities Of the numerous auto
mobile and motor corporations havc oc.
cupied foremost position in the trans
actions of the country'S leading stock
exchanges during the last five years aud
at different intervals were the CCuter
of interest in the big market move
ments. The appreciation in value OF
the securities of many of the leading
motor vehicle concerns surpassed the
fopdest hopes of the most optimistic
believers in the industry.
Quick Change
Much Of the growing prominence OF
automobile securities from u stock mar
ket viewpoint was due to tho manner IN
which the manufacturers of motor vehl-
cles were able to turn from war basis
back to peacetime status. The uu-
prccedeuted demand for automobiles
and motortrucks which developed after
the armistice was signed proved to bn
genuine surprise to many people IN
the industry.
Not d few prominent interests in the
automobile trade expected that the
manufacturers of mOtorcars would enter
upon lean period following the ccuclu-
sion of the war. Instead, the demand
for all sorts Of motor vehicles which set
in in The early part of last year has
grown to such proportions that vlr-
tually every manufacturer in the coun-
try has found it necessary to increase
plant capacity. This has meant in
creased capital, bat it was readily OBJ
tanned because of the lucrative returns
heretofore met in all such investments.
Remarkable Growth
The phenomenal growth of the indus
try may be better appreciated from the
fact that for 1918 it is estimated that
about 1.500 900 automobiles were
turned out During the current year
il is not unlikely that 5000 900 motor
cars will be produced, aud manutac-
turers say that even at the rate OF pro.
duction it will require some time to ap-
proach anything near the saturdt'oh
point.
As a result of the enormous business
arcrujng to the motorCar producers, the
earnings of the automobile concerns are
constantly making new bigh records.
The General Motors Corporation earned
more in the tr,t six months of 1919
than had been earned i'll any previous
full year and it is estimated that caru
ings for the last half of 1919 will almost
double the earnings OF the first half Of
the year. IT'S gross sales, which will ap-
proximate $3.50, 600. 600 for 1919, will
be increased almost to $500, ,OOO, 900, ac-
cording to au estimate, by W. =. Du-
rant, the president of the corporation.
The Studebaker Corporation showed
a net piott from uinc months op-
crations up to September 80, 1919, al
most equal to the return for the full
twelve months of the previous year.
Christian Girl. president of Standard
Parts Co. of Cleveland, and vice prcSi-
dent of Motor and Accessory Manufac
turers' Association, says: Labor will
be more constant and will accomplish
more in 1920 than in 1919. That prices
will fall to any marked degree is not
to be expected for number OF reasons.
All material product is based on work
OF tnc DBDu d0U lUC DVdlU, duu price VI
materials can be lowered ouly when
there is less demand for labor of the
hand and brain than there is at this
moment.
ut will take some years to rcStock
the warehouses of the world. and until
this occurs there can be no such thing
as overprodurtion. There may be some
unbalanced production. but no surplus
OF commodities IN the average. All our
debts have been contracted with o rising
and inflated market, and cauuOt be
paid with Il debated market. This is
another reason for general prices of ma
terials remaining up. Demand for goods
will exceed supply.
This will be especially true of the
motorcar Demand for rars this next
year will far exceed 1919. aud should
run from 5000 600 to SOTO, 600 ears.
including trucks. Production will be-
limited by ability Of manufacturers and
parts makers to secure steel aud other
metals aud labor. Production will be
nowhere equal TO demand, and if it
should run at Il rate Of 2,2JO 600 cars
for the year, it is possibly all that can
be expected. Cars are being designed
better than formerly and lasting longer
Replacement business will not amount
TO as much IN proportion in future as
in the past, but this is IN the tendency
III ttbu'hlN III lN' NuIlTt lulUN"
try and in use OF automobiles. and
should be benefit rather than a detri-
ment.
"It will be impossible for supply to
oyertake demaud within three wears.
after which the rehabilitation Of other
PORTIONS of the world aud demand from
them upon US for mOtOrcar means Of
transportation will be sufficient to af.
ford an excellent market for many
years.
shares Split Again
No better illustration Of the profitable
character of the motor stock invest
ments could be offered than that Of the
General Motors Co., which II uuques-
tiouably in point of capitalization the
father Of all motor concerns. Through
the ratification of the General Motor
Corporation recHpitulatiou plan the
> eommon stockholders on and after May
"A 3. 1920, will receive ten shares of neg
|. no par value common stock IN exchange
for each share of the present common
stock. This is the second time the com
a mon shares have been split up, and is
II the result of the remarkable growth OF
what Is now the largest motor company
In the world.
Early in 1915. the year before the
present corporation was organized
v through the acquisition of the assets ol
the old General Motors Co. of New Jer
sey, the common stock was selling al
$50 a share. The purchaser of ter
shares of common stock at that time was
ahle 10 exchange his holdings the follow