The New York herald., 1922-01-08
HUGE GROWTH OF
GENERAL MOTORS
Now Stands Second Among In
dustrial Groups Of the
World.


second among the industrial groups OF
the world. from the standpoints of finan-
cia%position and volume of business. IL
IS an outSrowth OF General Motors Com
pany, which was Incorporated September
l6 1908. the first logical consolidation
Of motor car manufacturers. The frs.
automobile companies to be acquired
we're Buick, Olds Oakland and Cadillac.
: IN the order named Chevrolet did not
Join the family until May, 1918. orisi-
naIly. each of the affiliated companies
continued as an entirely separate entity
and had only a financial relationship
with the holding company.
The automobile industry was expand
ing very rapidly in 1908. and Genera J
Motors acquired control OF various com
panies making major assemblies such
as motors and aXles and parts. In a
little more than two years the COM
pany had ownership or large holdings
IA Northway Motor and Manufacturing
Company. Weston-Mott Company. Cham
pion Ignition Company, Jackson Church
Wilcox Company, Michigan Auto Parts
Company and Michigan Castings Com
pany. BY the end of 1910 the company
had entered the commercial vehicle field
by taking in the Rapid and Reliance
companies q foundation for operation
in Canada was laid by acquiring sub
sta ntial interest in Mclaughlin Motor
Company, Ltd, of Ontario
Rapid expansion in the automobile
Industry throughout the country resulted
in generally trying industrial conditions
IN 1910 and many companies were un-
able TO continue in business. owing to
lack of capital and bad management
General Motors proved an outstand ing
exception. In the three years from 1912
he riz tiOr t,1ada a
pressive record of. sales and earnings,
which was possible by its program OF
production on a large scale. Substantial
additions were made to the plants OF
the Cadillac, Buick and Weston Mott
companies. In 1915 the company paiu
it's first cash dividend on the common
stock. at the rate OF so per cent
In 1916 the company having made
final payment on $4,000. 900 of FIVE year
notes. the existing voting trust was dis
solved and the control of the company
came back to it's stockholders. At this
time Pierre S. du Pont and some of his
associates acquired a large stock inter-
est and Mr.. du Pont became chairman
OF the board Of directors. october IL,
1916, General Motors Corporation, a
Delaware corporation. was organized,
and August !, 1917 had taken over the
assets of the General Motors Company
OF New Jersey. The new corporation
has since that time actively admins
tered the affairs of General Motors.
The new organization launched pro-
gram of expansion without parallel in
Industry. In May, 1918, the operating
assets of the Chevrolet were acquired
and the corporation actively entered the
field of the low priced car. In Decem-
ber Of the same year General Motors
absorbed United Motors Corporation,
which included the Dayton Engineering
Laboratories Company, Hyatt Rolier
Bearing Company, New Departure Man.
ufacturing Company. Jaxon Steel Prod
nets Company, Remy Electric Company,
Harrison Radiator Company and KlaXon
c,oupany. In 1918, also, General MOTORS
purchased the GAINESVILLE Machine Com
many. maker of farm implements, ana
the Lancaster Steel Products Company.
proporties acquired in 1918 represented
an investment exceeding s4o,Ooo'ooo'
most of which took the form or common
and debenture stock or Generai aotors
Corporation.
facturipr facilities was made. The
Buick factory at Flint, with capacity
Of $50 passenger cars a day, was en-
lar-ed to a capacity Of 500 cars per
day. A new factory for the Cediiiac
d,vision at Detroit was begun. providing
for a total capacity of $4,000 passenger
cars per year; 1t was completed two
wears later at a cost OF approximately
$4,000. 900 and Is the worlds largest
plant for the manufacture OF multi
cylinder cars. Substantial additions were
also made to the plants of the Chevrolet
r-roup. the Oakland at Pontiac ana the
Odds at Lansing. The Samson division
at Janesville was equipped with new
facilities. providing for capacity OF
MANY thousand tractors per year, wnlie
n still continued to produce farm trucks
and agricultural implements. General
Motors truck division at Pontiac was
proyided with additions to permit an
annual production of 10000 trucks
In the same year the corporation ac-
ouired majority interest in the FISHER
Body Corporation, the largest maker OF
automobile bodies In the world. An In
vostment OF more than $27.000.00O was
used 10 expand and develop the Fisher
nIant. This move assured General Mot
rors an adequate supply OF bodies. par
tlcuiarly of the enclosed type. Otner
properties were acquired in 1919 to add
new lines TO General Motors products.
These included Delco Light Company.
producing complete farm and home cleo
tric light and power plants; Frigfdaire
Corporation. making line OF mechani-
eel domestic refrigerators; Dayton
Wright Company, Dayton. producing
airplanes and airplane parts. This COM
pany holds important contracts with the
United States Government.
The year 1919 also marked the be-
ginning OF work on the General Motors
administration building in Detroit This
IS fifteen stories high and occupies, with
ats extensive laboratories. an entire city
block This building. with the General
Motors building, Broadway and F'ifty-sev-
enth street, New York, will provide am
ule Office space for the needs of the cor
poration and It's allied interests for many
wears. In 1920 the program OF new con-
struction called for the expenditure of
approximately S79, ,000. 900. The approved
projects were practically completed last
ycar with an additional outlay of
s11 ,000, 900.
In the period from July 81. 1912 TO
December 81. 1920, the corporation $
fixed assets increased from less than
$40. 900 900 70 practically S250,000. 900,
end its productive capacity was increased
from $4,000 units to 100000 motor
vehicles.
By reason OF its large organization.
facilities and resources General Motors
occupies a unique position. Its growth
and prosperity reflect the growth OF its
constituent companies. A list of Gem
eraI Motors holdings shows eeventy-eight
divisions. subsidiaries and affiliated COM
panies producing everything that goes
into a completely equipped motor vehicle
from a limousine 10 tractor. It's plants
are located in thirty-flve cities of the
A.s.. nd