FORD FINANCE

Southland Times, Issue 18973, 21 June 1923, Page 10

FORD FINANCE

LAST YEAR'S BALANCE-SHEET. The Ford Motor Company, Inc., has more actual cash in its treasury than any other corporation in the United States, regardless of its size, says the New York Times of May 5. The cash holdings exceed those of even the United States Steel Corporation, despite the fact that the assets of Henry Ford's company are only about one-fourth as large as that of the largest steel organisation in the world. The assets of the Ford Company now total more than 500,000,000 dollars, the largest in the history of the Ford organisation, and approximately two and one-half times as large as they were only five years ago. These facts were given in a statement of the Ford Company covering the year ended February 28, 1923, as filed yesterday with the Massachusetts Commissioner of Corporations at Boston.

When the Ford Company was organised in Michigan, just twenty years ago, it had total assets of Jess than 100,000 dollars. At that time Mr Ford did not even have a controlling interest in the original 28,000 dollars of capital which was subscribed by Ford and the friends he managed to interest in his enterprise, which now stands above all in the automobile industry of the world. It was not until 1906, fully three years after the company was incorporated, that Mr Ford was successful in obtaining a 51 per cent, interest in the company, giving him complete control of its affairs. * Shortly after that time he acquired an additional. 74 per cent, of the stock. The last 41| per cent, was purchased by Edsel B. Ford, son of Henry Ford, and the two now reap the entire profits of the Ford organisation.

The profits for the year ended February 28, 1923, was shown in the statement, approximate 119,000,000 dollars, after paying all running expenses, allowance for depreciation, depletion, taxes, and other charges which might be deducted from current earnings. Inasmuch as the outstanding capital stocy of the Ford Company amounts to only 17',264,500 dollars, consisting of 172, 645 shares of 100 dollars par value each, the profits for 1923, after allowing for all deductions, were in excess of 690 dollars a share.

Details of the financial statement show that, on February 28, the company had total cash holdings of 159,605,687 dollars, the largest at any time in the history of the company, and probably larger than any other corporation in the world. The annual statement of the United States Steel Corporation at the close of 1922, issued a, short time ago, showed that its cash holdings were 126,700,131 dollars.

The Ford Company’s cash holdings are much larger to-day. however, than they were in February. Only a few weeks ago, when the old Wall street rumour to the effect that Ford might have to borrow some money, was again circulated, advices werereceived from the West that the company had cash amounting to 200,000,000 dollars. This is believed to be due to a further turning of inventory into new cars and the placing of these eggs in the market. The February statement showed that Ford’s inven-' tory account was carried on the general balance-sheet at 83,693,884 dollars, a total almost double that of the same date last year, and with the exception of 1920 the largest ever carried. Even the 1920 inventory account, carried at a time when prices were much higher than at present, was valued at only 96,000,000 dollars. Liquidating of inventory since February 28 is believed to have greatly augmented the finance.