The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-08-29
BY JOHN w. HILL
Financial Editor. Iron Trade
RoviAw


General Motors Corporation, the
automobile giant, is the infant prod
ICY of the industrial world. Its
success has been both remarkable
and spectacular. Its annual earn
ings are unequalled by any other in
dustrial enterprise in existence.
The latest development affecting
it's dazzling destiny is the decision
by the board Of directors for another
huge stock dividend declaration of
100 per cent. Nine recapitalizations
of General Motors, common stock have
been accomplished in the last ten
years. These have been accompanied
by a tremendous increase in Value.
How Profits Grew
! Statisticians estimate that a hold
err of 100 shares of General Motors
stock in 1917, keeping all his stock
dividends and taking advantage OF
rights to subscribe to additional
stock would now have $50 shares,
This would make growth from
around $4,000 to around 100000 on
his investment Meanwhile, cash
dividends received would have been
more than sufficient to cover the
cost of the original 100 shares.
Even more startling is the rise Of
! the stock since the company's incep:
ton in 1908. A man who bought
100 shares then for $4,000 keeping
all his stock dividends and taking
advantage of the right to subscribe
to additional stock, would now have
1869 shares. worth $l,678,23O, and
would have received cash DIVIDENDS
exceeding S350,000.
Profits Of the General Motors Cor
poration during the first half o.
1927 were Just under $130.O00,0 900
That it is a, far more profitable en-
terprise than is the United States
i Steel Corporation is indicated by tn
!! fact that the latter earned approx
mately s9l.OOO.O00 in the first 81.
4 months of 1927.
i During 1896 General Motors Cor
poration reported net earning o
nearly 80 per cent upon it's capital
\ ization. compared with less than
per cent earned by the Steel Cor
poration upon its capitalization
With q capitalization of only one
Il third of that of the Steel Corpora
! ton. General Motors has shown a.
a ability to earn profits greater by. 4
: per cent than tits great sister cor
AuBillion a Year
: Previous to the recent announce
ment of new stock dividend, tn
100000 shares of General Motor
u were selling at around $3.50 snare
e or a. total of 81, 959. 100000. Durin
$ the last twelve months, the corpors
. ton has marketed 100000 autome
biles. It's business is running at tn
! rate Of we'll over $l,OOO.OOO,OOO
year.
The corporations assets tot
i 1920, 100000 and it has q workin
capital Of $192.O0O.OOO. Its last pa
ance sheet showed cash and marke
ahle securities valued yat $l35, 1898 90
APPROXIMATELY 10000 worker
: are employed by the General Motol
0 Fermentation. Its annual payro
! amounts to more than $220,OO0, 90
8 Wall Street reckoned the value OF la
q years cash and stock dividends !
: $500. 900 600. A large share OF tn
: flowed into the we'll lined Golfers
the du Pont family However, mar
other citizens shared in the corpor
tons prosperity, as there are. 81
600 stockholders on record as OF Il
4 last accounting. i.
General Motors doomed up as
challenging factor in the automQbl
y field in 1920. From that period
a. made swift progress. The corpor
- ton met it's great rival Henry 70
81 and his famous Model TIN open ira
combat.
Nrs home years. Henry Ford. co
tinued to dominate the field Y
~ auestionably,; making more than \.
Z Of all the automobiles produced
"a sold, in this. country.
III Finally Went AAead
- At last, late in 1aoG sales
General Motors cars w6fe seen
s. gaining upon Fpm and fins
Il. with sales Of Ford cars slspp