Evening star., 1925-04-09
PLANS KEPT SECRET
IN BIG MOTOR DEAL
Competition With Ford One
of PosSlbiIities-StOCk
Finds Ready Demand.
BY j. &. ROY LIE.

Snecial Dispatch TO The star.
NEW YORK. April 9.-The $50, 900
Shares of : per cent preference stock
of Dodge Brothers, Inc, offered to the
public today sold like the proverbial
hot cakes. That is, they We're snap
ped up at once by the investment
bankers of the country. They have
still to be placed with actual in
vestors. The investment bankers still
have to sell them TO their clients and
Keen them sold.
The Importance of the movement
Hes not in an Immediate over-sub-
Ecription. Any powerful banking
group can assure an ver-subscription
of a capital issue. They simply say
10 their corresponding houses, Your
allotment is so much" The smaller
houses scattered throughout the
country have then the choice of un-
derwritinG that amount or being pos
slbly left out on future issues.
Ready Absorption Seen.
The real significance of the speed
with which the big financing in the
automobile industry was received to-
day lies i'll the fact that financiers
all over the country are convinced
that the country is in such shape
that the huge offerings of the new
Dodge Company can and Will be
readily absorbed by the investors,
and that buying power is such that
the new company will make more
money for its stockholders than was
made by the old Dodge concern.
There is no doubt that the original
Dodge Brothers builded soundly, and
that the management OF ]. +. Hayes,
president, and John Ballantyne and
other trustees was efficient But the
feeling in Detroit manufacturing cir
cles is that the spark of enterprise"
was lacking which would tend TO
keep the Dodge concern in the fore
front of an industry changing daily.
SnIes Plans Kept Secret.
The bidding for the property
carried every evidence that financial
men thought more money could be
made from the Dodge concern than
has been made. There has been as
yet no indication of what the new
controlling heads plan in the line of
manufacture, distribution and sales.
But the general belief is expressed in
dispatches received today from De-
rroit that the Dodge market will be
expanded.
TO do this two broad courses are
open. The Dodge factory can turn
to the limited volume field and make
cars selling at relatively nigh prices
production, from which profits are
lower, but profits more certain and
stable. 1t is probable that the lat
ter course will be chosen
Might Compete With Ford.
Without pretending to know what
Clarence Dillon and his associates in
the new concern intend, engineers
say frankly that the Dodge company
could reduce the price of the present
four-cylinder models, take off some
trimmings and become a formidable
competitor of Ford. The country is
so prosperous that experts are con-
WINGED that Dodge at $500 would
win many Ford prospects.
Since so many cars are sold on a
part payment plan, the difference in
the final price is of less Importance
than the difference in the down pay
ment 4 331a payment on $500
Ford is S166, while a similar payment
on $500 Dodge is only SCI greater.
Other Dodge Chances.
Dodge could bring out a six-cylinder
car at the other end of its line to sell
from $1,000 upward and bite into the
price field just above its present
limit. With the dodge behind it,
many believe such a car would estab-
1ish almost overnight. Dodge dealers
be able to handle four-cylinder cars
in greater volume and would keen
the trade of the customers who grad
uate" from the four-cylinder class,
who now are lost when the Dodge
owner "outgrows' his four.
Sweeping Changes Possible.
Ford might retaliate by putting out
q, six-cylinder car to sell at a lower
price than the Dodge six and the
competition thus established might
upset the entire motor industry
Bankers both here and in Detroit
claim 10 Immediate changes in the
Dodge policy or output are contem-
plated, but those who know Dillon
insist that he will not be satisfied
long to sit still and that new force
has come into the motors. 1t is need
less to state, however, that Dillon,
Read & Co. and all their associates
behind the new concern know fully
what it means to fight Ford