Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-09
GENERAL MOTORS
!. PAYS OUT SAVINGS
20,009 Employees Share in
Distribution of So, 1868
Workers Fund.
Special Dispatch to The Star.

Special DlSptJCn 70 Inc OGAT'
NEW YORK, February 9-"General
Motors Corporation is distributing So
706, 937.04 to 10000 employees who in
vested in the savings and investment
fund class of 1925, which matured De-
cember 81, $780," Alfred p. Sloan, jr.,
president of the corporation, announced
today. This total of $8,706, 937.04 con-
sists of So, 422, 345.63 in cash and 49,
388 shares of General Motors common
stock. During the IL years the savings
and investment funds have been in
and employees of the corporation have
received $65,955 SAT, including 1,468, 1874
shares of General Motors common
stock. In addition to this sum the EN-
ployeS of General Motors Corporation
have, in the five unmatured classes,
$82, 544 ,634, representing cash divi-
dends and common stock available for
distribution in the next five years. This
makes 12-year total of $148, 500, 181.
10000 Participate.
"At the present time,'' Mr.. Sloan
stated, 100000 employees of General
Motors Corporation are participating in
the savings and investment funds. APP
proXimately $4,000 individuals are help
ing to pay for their homes through the
operation of this plan. OF the 1925
class alone, 1000 employees applied their
savings against housing contracts,
amounting in the aggregate to $780,
1926.
II should like to call particular at
tention to feature of this plan which
has a striking application to present
conditions, and that is the unemploy-
ment protection feature. The operation
of this plan enables each employee who
participates to automatically provide a
measure of protection, in cooperation
with the corporation, so that irrespec-
tive of business conditions every en-
ploye of the corporation who partici-
pates should have some financial re-
sources to weather a period Of business
depression without the aid of public
agencies.
Each employee who invested $500 In
this fund in the 1925 class is receiving
total of $1,054.16. OF this $414.35 is
in cash, representing the original in
vestment plus interest at 6 per cent.
The balance consists of 1900 shares Ct
General Motors common stock valued
at the closing price of the common
stock (S35.375) on December 81, 1880,
representing accumulation on account
of contributions by the corporation to
the fund.
Savings Are Substantial.
"All employees of General Motors Cor
poration are eligible to participate in
these savings funds" Mr.. Sloan ex-
planned. "A new f1ve-year class is
started and one natures each year.
Eligibles may pay in 20 per cent of
their annual earnings, not to exceed
$780, On the Inauguration of each class
General Motors contributes SO cents to
each dollar paid in by employees. The
corporations contribution is used to
buy General Motors common stock and
the dividends are used to purchase more
stock
Throughout the operation Of these
funds substantial sums are accumulated
annually. The amounts contributed by
employees, however, are small, ranging
from SIS to $25 per month, amounts
which undoubtedly would be disSipated
If this savings plan or some similar
plan we're not in operation. Over a
period of years these funds have helped
our employees to help themselves and in
the future those who participate should
be able to take care of themselves"