Every evening, Wilmington daily commercial., 1922-01-05
NO COMMON DIVIDEND
ON GENERAL MOTORS
Company in Strong Position
Despite Losses Written of,
Says President.

The quarterly dividend OF 2b cents
a share on the common stock of the
General Motors Corporation was pass
ed at the postponed meeting OF the
board OF directors held yesterday af-
ternoon In New York. The decision
was not announced until long after
the close OF the market, but recent
weakness In the stock had anticipated
Just such development. The stock
yesterday declined to SN new low
record for the present class of shares,
but recovered TO 9M at the close and
ended the day with a net loss ofss OF
point
General Motors has been paying
cash dividends at the rate OF 25 cents
quarterly on the present class OF COM
mon stock since the second quarter
OF 1920, when the shares were split up
on basis OF ten shares OF the pres
ent stock OF no par value for each
share OF the old stock OF 800 par
value. The company also paid quar-
terly stock dividends OF 1-40 OF a
share, but In December. 1920. dividends
payable In common stock were sus-
pended.
The directors declared the regular
quarterly dividends on the per cent
preferred. the per cent debentures
and the per cent dcbentures, all OF
which are payable February / to
stockholders OF record January IA.
Pierre S. du Pont, president OF tho
company, In statement issued after
the meeting said:
"This action. taken after full discus
sion and most carefu consideration, Is
believed to be In the best interests OF
the corporation and Is designed not
only TO strengthen the position OF the
corporation itself but also to main
tain the investment character OF the
debenture and preferred stocks.
J ''The last year has demonstrated sat
lisfactorily the large earning capacity OF
. many of the more important division.
of the corporation the aggregate profit.
OF which even under the adverse con
ditions that have obtained in the auto
! mobile industry are estimated 10 hav
been in excess of the amount requires
for dividends on the debenture, pre-
ferred and common stocks. On the othe
hand. substantial losses We're made b
! other divisions. due mainly to large In
ventories carried at high prices in tn
face OF a constantly declining range c
: prices for the finished product, and ais
20 extensive commitments entered int
|. | in the earlier part Of 1920 for parts an
supplies at the high prices then prevail
! ing. Moreover. in closing the books q
on December 81, 1921, further charge
. will be made against surplus TO writ
: down inventories to market prices an
set up reserves 10 provide for losse
: properly chargeable TO prior years.
/. "The corporation Is in a strong pC
: sition financially. Inventories ha,
been greatly reduced and bills pays
- BILE. which amounted TO about S72, 900
: 900 on December 81. 1920, have bee
: reduced TO about s49,0oo0oo as OF d
!. cember 81, 1921. cash on hand and
Z banks amounting TO approximate
(. S4l. .o0o, 900. Accounts payable al
: other quick liabilities have likewi'
= been reduced, viz, from about s42
!. GOO, 600 to $4,000 200. After writir
4 off all determinable losses and writir
/, down inventories the ratio OF currel
assets TO current liabilities as of ID
= cember 81. 1921. will be approximate
two for one.
- THE corporations plants have be-
maintained in high state Of ef'icienc
Substantial economies have been e
- fected in many directions and othe
are in contemplation. and most satl
j. factory progress has been made
!, improving the character and raisir
!. the standard Of the corporations pr
!. duct to the end that 1t VIII be enabl,
effectively TO meet competitive cond
/ A., 10 :,
= trade"