The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-23
M0RGAN-DU POINT
BUY CONTROL IN
MOTOR COMBINE
Pay Big Sum to Take Over
81 Per Cent. of General
Motors Company.
$50, 100000 IS REPORT
Corporation Previously Alb
sorbed Many Others in
AuJOInODlle Industry.
DURANT TO BE CHAIRMAN
Banking Interests Once Before
in Ascendency to Continue
to Remain There.
DURANT TO BE CHAIRMAN

After four days of negotiation more
than 100000 shares Of the stock OF
the General Motors Corporation, rep
resenting almost $50.000,0O0, passed
yesterday from the control and owner
ship OF W. c. Durant, president of the
Pont and Morgan interests. Payment
in the transaction. which was one OF
the largest of it's kind ever consum-
mated, was made part in cash and
part in the stock of the Du Pont Sc
curtles Corporation, recently organ
lied by Pierre s. du Pont and his as
sociates
The net result of this deal, coupled
with the acquisition of General
Motors stock at every eighth down in
the recent decline in the market, is
the ownership by the Morgan and Du
Pont interests of more than 81 per
cent. Of the $4,000, 600 shares Of Cen
eral Motors stock now outstanding.
The deal brings the two largest cor
porations in the industrial world-the
General Motors and the United States
Steel Corporation. each in the billion
dollar class-under the domination of
the Morgan interests and their as
sociates. 1t is probable, according to
limitations OF persons interested in
the deal, that Mr.. Durant will be ele-
waited to the craftsmanship of the
board of General Motors
Banking Interests Control.
For the second time in the history OF
General Motors Corporation its affairs
are controlled by banking interests. and
this time it Is asserted that the banks
VIII not rellnquish their dominate
About four years ago II was called 10
the attention of the Morgans and the
Du Points that the General Motors Cor
poration could be made the same stabil-
izing influence in the motor world that
the United States Steel Corporation had
become In the steel industry.
The efforts of these interests to con-
troll General Motors are believed to
have begun at that time, and circum-
stances has been such that they were
poration at a fraction OF the going
value and far below the market value
put on the stock during the bullsh
movement OF October. 1919.
1t is impossible to estimate the exact
equivalent that w. G. Durant and his
associates received for the shares that
changed hands, because the cash re-
ceived amounted to less than 81 a share,
and the balance was paid in shares of
the Du Pont Securities Corporation. at
present of undetermined value. Per-
sons interested in the transaction said,
however that almost s50.00o,0o0 was In
volved.
Deal worked In Six Months.
Although. according to Wall street
gossip. the Morgan and Du Pont in
terests began laying their plans for
control of the corporation several years
ago. they did not obtain an interest in
the affairs of the company until six
months ago. and not until yesterday
did control pass completely from the
hands OF Mr.. Durant.
The company at the end OF 1919 EN-
ployed nearly 10000 persons. and be-
sides owning it's own acceptance cor
poratlon. a General Motors Corporation
OF Canada and absorbing the Chevrolet
Motors Company and the United Motors
Corporation. the General Motors Cor
poration includes in its consolidated
balance sheet the assets and liabilities
OF many other companies. In addition
to various sales organizations.