Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-10-28
General Motors Net
Far Above Year Ago
In Third Quarter
Sl5,5o7 ,030 Compares
With S8,627 ,268 in
Same 1899 Period
Bv the Associated Press.


NEW YORK, Oct. 28.-General
Motors Corp. reported today for the
third quarter net income of SIS
SGT 900, after charges and taxes,
equal after preferred dividend re-
ouirementS to 81 cents common
share. This compared with S8,627,-
268, or Is cents a common share,
in the September quarter last year
The corporations total tax bill
IN the quarter amounted to $l2,-
$1,000, an amount nearly equaling
the earnings applicable to the COM
mon stock. Of this total, $5,288 900
vas set aside to apply to earnings
il the first six months of 1910 in
\ conformity with the new tax laws
Earnings on the common stock
after deducting S7,289, 900 for income
taxes applicable to the third quarter
alone, amounted to 8,59O,475, equal
to 43 cents a share
For nine months to September 80
net income amounted to S129,172,-
"a, equal to 1888 common share,
compared with S1O9, SIG, 1893. or So SO
n share, in the comparable 1889
T--Icd. The total tax bill in the
l'Ne months was $50, 472, 900, against
S-7,l32 900 a year ago
Sloan Warns Holders.
Alfred P. Sloan, Jr chairman,
It'd stockholders they must expect
II receive a diminishing return as
IS trend of increasing taxes pro-
Ccods."
The stockholders return will di-
n'inish not only with respect to
earnings applicable to any particu-
l2r volume" he said, but superim-
posed upon that there must neces-
sarily result a reduction in volume,
all other things being equal because
CT the diversion of this increasing
part of industry's productivity into
unproductive channels, thus affect
ing purchasing power and prices.
For that reason, earnings hereafter
will be reported to stockholders both
before and after United States and
foreign income taxes, so that they
may better determine the trend of
the earning strength of the corpora
tion-that part within the influence
CT management as distinguished
from that part over which manage
ment has no control"
Sloan said General Motors per-
centage of passenger cars registered
in the 1910 season through August
reached new high Of Ala per cent
Of all domestic registrations.
Net sales in the third quarter, eX-
Guiding interdivisional transactions.
were S275, 1911 $40, an increase of At 3
per cent over S167,192 $40 in the
comparable three months last year
For the nine months sales went over
the billion-do mark to S1,195,-
75l,699, an increase of 20 per cent
over s926,593, 853 last year. These
increases, Sloan said we're partly
cue to the earlier date at which the
new models reached quantity pro-
duction this year.
Of general business conditions
and the national rearmament pro-
gram, Sloan said in part:
Further Rise Expected.
"As contracts now being placed
reach the point where they bring
= about increased employment, with
larger pay rolls, the result will be
further stimulation of the economy.
AS time passes and this in
fuence becomes more and more pro-
nounced and widespread, the pro-
ductivity of industry can be expected
to increase still further and perhaps
even to establish a new all-time
record.
1T cannot be denied there are GER
tain influences on the other side,
such as the impact of increased
taxation, yet it is believed the net
result will be a broad expansion over
wide area of the industrial front.
$50 far as the trend over the next
two or three years is concerned, it
seems assured that, as long as the
synthetic influence of the enormous
amount Of Government spending
continues, a high level Of production
will in all likelihood be maintained
Thus. we may expect the superficial
indications of returned prosperity.
and to the extent that this is true,
to the same extent do we increase
the price that ultimately we must
ray, particularly if the expansion be
accompanied by an abnormal in
crease in general prices"
In the third quarter the total
number of employees averaged 223,-
", an increase Of % per cent over
l3l,7O4 a year ago. Part of the in
crease was due to earlier introduce
ION of the new models.