The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1925-07-23
Earning Power of Nash
Motors Lauded in Article
In Boston Paper.
REVIEWS IT'S GROWTH
Record of Nash Co. One of the
Brightest Spots in Amer
lean AutomOtive History.

is one of the brightest spots in Amer
lean automotive history" declares |
financial writer in recent copy O.
! the christian Science Monitor" copies
of which reached Kenosha this morn
| ing. The article continues in mos
interesting way to discuss the develop
ment of the Nash plant as follows:
Original investorss who in 1911
subscribed $5,000,000, received $4,000
shares of preferred and $4,000 shares
| of common stock. The latest balanct
sheet shows and net tangible asset:
of close to $35,0o0,000, and earning:
in the last quarter exceeded twice
the total earned in the first IA months
of the company's existence.
Nash Motor earnings in the SECOND
quarter of it's fiscal year ended May
81 were the second largest three
months earnings in its history, having
been exceeded only by the final guar.
ter of the fiscal year ended Nov. sc
1924. Net was $4,193,1 $50, equal after
preferred dividends to $14.40 on 273,00t
common shares. In the record three
months, ended Nov. 80, last, net was
$4,955, 800, equal to $17.19 share.
For the six months to May 81, 1925
Nash earned 1929 ,143, equal to $24.79
share, which compares with net In
the fiscal year ended Nov. 80 of 3d.
280,541 or $29.95 share.
The unusual feature of Nash in that
output and capacity have not been
multiplied since the company started
on it's career, to the extent by which
other automobile manufacturers have
increased production.
In first ID months of it's existence
August 1915, to November, 1917, the
company produced around 10000 We
hicles, and it is doubtful if produc-
ton in the three months ended May
81, 1925, was much more than double
this figure.
Obviously the policy has not been
to expand facilities in line with ex-
pansion in demand, being content to
maintain satisfactory margin of
profit on sales by selecting the cream
of the business.
Profits Are Stable.
Annual production is now upward of
10000 cars, with current daily produc-
ton of 200. The heavy backing of
orders will soon necessitate an in
crease to around 225. BY maintain
ing production at fairly even level
the year round through the policy of
keeping it considerably below indicat-
ed demand, Nash has not been subject
to the recessions which afflict many
other leading motor makers. Profits
have therefore kept at very satisfac-
tory levels through good years and
bad.
The following table, which covers
extreme conditions, both of prosperity
and adversely, shows the stability of
Nash's earnings and their remarkable
gains when the motor industry booms,
as has been the case the last nine
months:
NET EARNINGS b.
May 81. .$4l9s, 1870 1901, 900 s2.56s. 4o5
Feb. 3D.. 3,099,2s3 1,618,475 1,573, PAP
Nov. 80. -. 1855 800 2;8S0,613
Aug. 81. -. 1905. 1855 2,257,767
Earnings per share have been as follows /:
Quar- ended: 1925 1924 1928
May d.. $40 s4.4s 1928
Feb 3D.. 1896 4.S1 4.48
Nov. 3d.. 1910 $50
Aug. 31.... $40 1872
There is good prospect that Nash
is moving toward even larger profits.
1t recently entered the low-priced six
cylinder field with the Ajax car, pric-
ed around $1,000. Production to date
certain districts, and is expected to be
increased gradually to around 100 a
day by Sept. 1.
The company has acquired Mitchell
Motors plant at Racine, Wis, with
capacity for ultimately producing $50
Ajax cars a day. Even at a much
smaller profit per car than on the
higher-priced Nash line, successful
manufacture of the Ajax car in guam
tity should ultimately add materially
to Nash earnings.
Profit of Original Investors.
The original preferred was retired
at ITO in 1922 and each common share
exchanged for three shares of new
preferred and five of common. The
five shares of common at current lev
els of $440 a share are quoted at the
equivalent of $4,000 and plus the quota
ton of 1921 for three shares of new
preferred are equal to more than
$4,000 share for each of the common
shares issued as bonus at formation
of the company.
In addition, stockholders have re-
ceived $110 share for the original
preferred and 81 a year in continuous
yearly dividends, as we'll as an aver
age of $16 share annually on the
original common, and are currently
receiving dividends at the rate of $40
a share on present holdings of COM
mon.
It is understood the recent increase
in the semiannual extra dividend pay
ment to $3.50 share in addition to the
regular semiannual dividend of $3.5C
on the common, will not be the last
good news for shareholders this year.
AS Nash has proved such bonanza,
the stock is closely held, and the
management is secretive as to its fl
nancial plans.
Reports in the financial district are
that q melon similar to that cut in
1922 is again in prospect. The COM
pany has sufficient cash and treasury
holdings to retire it's outstanding $751;
600 900 preferred and still leave more
than enough for current needs of tine
business.
Coincident with such action, 1t is
rumored that the present shares will
be split on the basis of four new
shares for one old.
FIRE WARNINGS FIRST.
WARNINGS Of narr forest fires in The