Evening journal., 1922-01-05
NO DIVIDEND ON
GENERAL MOTORS
Suspend Payment on Com
mon Shares; Save $5,OOO,-
600 for Company
PAY ON PREFERRED
AND DEBENTURES

NEW YORK, Jan. 5.-Directors of
the General Motors Corporation late
yesterday voted to omit the quar-
terly dividend Of 25 cents a share
on common stock. due at this time.
The directors authorized the reg
ular quarterly dividend OF $3.50 on
preferred stock, $3.50 on per cent.
debenture bonds and s1.75 on per
cent. debenture bonds, payable Feb
ruary 1 to stockholders of record
January Il.
OF the corporations $4,000. 900
'shares OF common stock carrying no
par value, only 2O,646,3s7 are out
standing. on thtse. Yesterdays divi-
dend suspension saved the company
more than s5,OOO,O00. and If the
omission were continued for year,
more than $4,000, 900 would accrue.
Wall Street apparently expected
the passing. General Motors was
offered in single lots up to 10000
shares at a low record of So The
stock. however, rallied with the gen
eral list at the closing
Although carrying no par value,
the common was placed on a cash
and stock dividend basis in March,
1920. with quarterly disbursements
OF 25 cents a share cash and one
fortieth of a share stock. In Decem-
Der. 1920, stock dividends were dis
continued.
Pierre S. dupont, president Of the
corporation, issued a statement after
yesterdays meeting, which followed
the close OF the market, asserting
the action on cash dividends had
been taken not only to strengthen
the corporations position, but also
to maintain the investment char
acter OF its debenture and preferred
stock.
The past year" he said. has
demonstrated satisfactorily the large
earning capacity OF many of the
more important divisions, the aggre-
gate profits of which, even under the
adverse conditions that have obtain
ed in the automobile industry, are
estimated tc have been in excess Of
the amount required for dividends
on debenture. preferred and common
stocks.
ION the other hand, substantial
/ losses were made by other divisions,
due mainly to large inventories car
ried at high prices in the face OF a
constantly declining range of prices
! for the finished product. and also to
extensive commitments entered into
in the earlier part of 1920 for parts
and supplies at high prices then pre-
vailing
Moreover, in closing the books
as OF December 81, 1921, further
charges will be made against sur
plus to write down inventories to
market prices and set up reserves
to provide for losses properly charge
able to prior years.
The corporation IL in a strong
position financially. Inventories
have been greatly reduced and bills
payable, which amounted to about
$4,000. 900 on December 81. 1921,
have been reduced to about $40. .o00.-
900 as OF December 81, 1921. Cash
on hand amounted to approximately
S41 100000; accounts payable and
other quick liabilities have likewise
been reduced from $4,000 900 TO
$40, 900, 900 After writing of all
determinable losses and writing
down inventories, the ratio of cur
rent assets to current liabilities as
OF December 81, 1921, will be ap-
proximately two for one.
plants have been maintained in
a high state Of efficiency Substan.
tial economies have been effected ir
! many directions and others are ir
contemplation. Most satisfactor,
- progress has been made in improv
ing the character and raising tn,
standard OF the corporations pro
ducts, to the end that II will be en-
abled effectively to meet competitiv
/, conditions and maintain its posi-
} ton in the trade"
General Motors stock are held b,
numerous Delawareans, who vii
lose some OF their income. tempo
s rarily, at least, by suspension OF tn
j common stock dividend About g.