The Washington times., 1928-12-03
|NARKET I FUTURE
DISCUSSED BY
81 DAN
BY JAMES L. KILGALLEN
Copyright. 1928. BY international
News seryice1


NEW YORK, Dec. 3.Alfred T.
Sloan, jr,. president Of General
Motors Corporation. holds that the
New York stock market, which has
been cutting spectacular didoes for
MANY weeks, ahas overdiseounted
Iits earning power, for some time To-
come.p He said SO today In an
exclusive interview with the writer.
| He made 1t clear, however. that
he does not class himself as an
authority on the market and that
he was expressing his opinion mere.
IIy as ain individual.
There Is one ndamental way to.
create wealth. That is through
work" said. Sloan, when pressed FOR
his views on the orgy Of specula-
ton in. Wall Street. in which the
American public is playing such
heavy part.
He was referring to the huge
profits reported made by many per
sons on the upward swing Of the
market.
Record Profits
aAnvone connected with the null;
titude of problems coming UP laily
in & large corporation Is ilndoubt-
edfy poor Judge Of thing like
the stock market, said Sloan
whose time and energy has been
concentrated IN directing the affairs
81 corporation which this year
will do a gross business Of between
( i 500. 900 600 and $1.750, 1000 900 and
show the largest profits for single
year ever made by any Industrial
corporation In peacetiIne.
IT do not mind saying, however,
that my viewpoint which is not III
original one II that the marker
has overdiscounted its earning
power for some time to come
am speaking of the whole tread Of
the market and not with reference
to any Individual security It must
be recognized that. after all. values
can only be maintained II supported
by earning power.
when / hear, as frequently
40, OF large sums being made In the
stock market through the increas.
ing. values that are being 8stab-g
| iished-amd / realize that this is
going on to certain extent ali.
over the countryI sometimes ask.
myself If, from one angle. it is moi
unfortunate. For there IL only one
fundamental way to create wealth,
and that is through work.
The large profits, relatively OF
otherwise, made through the stock
market, have tendency to dis
count work which. after ALL makes
these things possible. In the last.
analysis the stock market simply
Iscapitalizes and establishes a value
on the contructive efforts Of
industry"
Sloan II Modest
sloan. speaks nlodestIv of the,
lachiesefng uf General Motors,
and sof own personal ability In
managing giant corporation
He wa 1oIA 20. u ss5. I'M
| New. Haven. Conn. He was grad
Inated as d Bachelor Of Science from
the Massachusetts Institute Of Tech
noIogy. He was an engineer. He
became associated with the Hyatt
| Roller Bearing Company. Of New
| ark n. j.. a concern that at that
time was on its last legs.
When young Sloan went to work
for the Hyatt people the company
was doing gross business OF less
| than 50 900 month. He ultimately
became president. and under his
management the business passed
the $50 900 900. year mark lie
built the company up from a
small. struggling concern to a
i,profitable institution
| In 1915 when a number Of &C
Icessory companies. including Hyatt,
were grouped under one organiza-
4ion. United Motors, Sloan became
its president and i'm 1918, when
General Motors absorbed United
Motors, he became vice president of
the parent company. in charge of
all accessory companies. In 1920.
he became operating vice president,
Not long afterward Pierre G.. Du
Pontt who had been temporary
president handed over, the presi-
Dental reins to Sloan and he has
hnId. fhnr,n o,rl,t, ri,,on -.