Business & Finance: Motor Week

Packard is Packard. An automobile left Tsingtao last week for Peking and points west—the points being vague oases in the bandit-infested, scantily charted Gobi desert. Camels and asses had crossed it before, but never a stock touring car. The leader of the expedition is Mark L. Moody, head of the Packard Motor Agency of Shanghai. He and his companions plan to hunt bear, elk, antelope; to meet and visit Scientist Roy Chapman Andrews somewhere in the Gobi

Meanwhile, in Detroit where Packards are made, President Alvan Macauley of the Packard Motor Car Co. wrote a letter to stockholders. He wanted to tell them that Packard is Packard, that it performs with distinction for distinctive individuals, that it will always do so. Wall Street, inspired by the Chrysler-Dodge merger, had been talking about more mergers and Packard had been mentioned. Here is what President Macauley wrote:

“Our position has been and is, that we will not merge or consolidate with any one. We have made our own way from the beginning. We have created a position for ourselves and a reputation that is distinctive and unique. We do not intend to surrender either.

“The personnel of the company from the beginning was made up of men who knew and loved fine things, mechanically and artistically, so the company was born to occupy the fine car field. . . .

“The history of fine things throughout the world shows that they are produced by men and organizations that have no other thought, no other ambition and no other ideals.

“We do not build to a price and we do cater to the world. . . . They are discriminating and we try never to lose sight of that fact. We know that the single standard of high quality will produce better motor cars than were we to attempt to secure the business of the world by building to all the pocket books in it.

“We are not opposed to expansion. . . . We may even from time to time expand by the absorption of other desirable companies. We will expand in any way that will enable us to best serve the public and win its favor.

“But, very definitely, we do not intend to lose our identity through any merger, combination or consolidation now or hereafter.”

Coincidentally, Packard issued last week its statement for the nine months ending May 31, showing a net profit of $17,803,304 or $5.92 per share of common stock. This is nearly double the earnings for the same period in 1926-27.

The position of Packard in the fine car field is largely the work of Alvan Macauley. He began as a lawyer in Washington, D.C. A good friend, Edward Rector,* recommended him to the National Cash Register Co. as a patent attorney. There, he soon turned himself into an inventor and engineer. Later, he went to the American Arithmometer Co. and turned it into the potent Burroughs Adding Machine Co. In 1910, when Packard was making four-cylinder cars, 2,000 a year, Mr. Macauley became general manager. James Ward

Packard, who designed the first Packard after a careful study of European cars, retired from the business in 1915. He died three months ago (TIME, Apr. 2), beloved by his neighbors in Warren, Ohio, to whom he left $100,000 for a town library. Last year some 35,000 six-and eight-cylinder Packards were sold and Mr. Macauley said: “We keep only those men who, we believe, are personally interested in the work itself.”

Willys Dividend. For the first time since 1920, Willys-Overland Co. paid a dividend. Said President John North Willys: “This action is another positive indication of the rapidly advancing progress of this company.” The dividend is a quarterly one of 30^ ¢per share of common stock.

In Five Years. If a man invested $100 in each of the six following automobile stocks on Jan. 2, 1923, he would now have (present market value, plus dividends):

Chrysler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,977

General Motors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,034

Packard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,002

Nash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 939

Hudson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..469

Studebaker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..200

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,621

Ford Sued. The Packard Motor Car Co. and the Wire Wheel Corp. of America last week filed suit against the Ford Motor Co., charging that the demountable wire wheel used on the new Ford is an infringement of the Cowles patent which Packard and Wire Wheel control. Fourteen years ago, one Edward T. Cowles of Warren, Ohio, sold this patent to Packard for a reported $500.

Studebaker-Pierce-Arrow. The board of directors of the Studebaker Corp. were to meet at South Bend, Ind., to consider a merger with the Pierce-Arrow Motor Car Co.

New Nash. The first of the manufacturers to put autumn models on the market is the Nash Motors Co. They are sixes, grouped in three series. Prices range from $885 to $1,775. “Twin ignition,* high compression. . . . I don’t think anyone will ever want to use all the speed and power they deliver,” says President Charles W. Nash.

Sales. According to Cram’s Automotive Reports, Inc., the standing of the manufacturers in number of retail sales for the first quarter of 1928, as compared with the first quarter of 1927, is:

1928 1927

Chevrolet Ford

Hudson-Essex Chevrolet

Oakland-Pontiac Hudson-Essex

Willys-Knight, Whippet Buick

Buick Chrysler

Chrysler Willys-Overland

Dodge Dodge

Ford Oakland-Pontiac

Studebaker-Erskine Nash

Nash Studebaker-Erskine

Oldsmobile Durant-Star

Durant-Star Oldsmobile

Hupmobile Hupmobile

Packard Packard

Cadillac-La Salle Cadillac-La Salle

Graham-Beige Paige

Reo Chandler

Marmon Reo

Chandler Auburn

Auburn Marmon

* Mr. Macauley named one of his sons Edward Rector Macauley.

* It is delivered by 12 “aircraft” spark plugs making 360 flashes per second, at the big model’s top speed (80 m.p.h.).