This section will include
Company Press Statements and Reports,
along with newspaper articles.
It gives an insight into how the company did over the years, and
how Herbert Austin guided his company, often voicing his views in
the public arena.
The items will
be in chronology order, with the latest version in
Blue
August 1906
First Production Cars Delivered
A 25hp Austin car, one of
the first completed vehicle was delivered to Richmond in Surrey. It
had a useful-looking hood and a movable weather screen. A small
window in the back allowed the driver to see right through when
reversing.
___________________
25 November 1911
Austin
Motor Co. Taken to Court
At Bromsgrove County Court on Monday last
the Bromsgrove District Council sued The Austin Motor Co, Ltd. for
£16-11s-4d. This was in connection with the damage done to the
Councils Road (Rose Hill Gradient) because of the extraordinary
traffic, as the Company were using the hill for testing. It was
stated as many as 80 vehicles a week were using the hill and this
extra traffic had incurred the council in extra costs to maintain
the highway.
The defence pointed out
that the Highways Rate had gone down during the period from 9d to
6d in the Pound. (The Highways Rate was
the amount paid in the pound based on the rateable value of a
Landowner property, which went to pay for the maintenance of the
highways) So if the road was fit for
traffic, then the Austin Motor Company was entitled to use it as
much as it likes.
The case was dropped, with Bromsgrove District Council paying
costs.
___________________
14
April 1916
The Austin Motor Company (1914) Ltd.
The Annual General Meeting
of the Austin Motor Company (1914) Ltd, was held on the 13th April
1916 at the offices of the company, Longbridge works, Northfield,
Mr. Herbert Austin (chairman and managing director)
presiding.
The Secretary having read
the notice convening the meeting and the report of the
auditors,
The Chairman, in the course of his address, said:- I am pleased to
be able to report that, in spite of the continuance of the war and
the extensive changes necessary to cope with the large contracts
received from His Majesty’s Government and the Russian Government
Supply Committee, the results of the past year’s work has been very
satisfactory.
Large Contracts Placed with the Company.
The sales aggregated nearly
£800.000, and for the most part consisted of goods entirely
different from those previously made by the company. This speaks
well for the energy and resourcefulness of the company’s management
and staff, with the result that further large contracts have been
placed with the company, and the order book at the present time
reaches the total of nearly £2,000,000. When the war is finished
there will be no difficulty in returning quickly to our regular
business, or taking up any lines that the circumstances may
warrant. During the year several large shops have been built and
equipped with plant for making shells, aeroplanes, aeroplane
engines, and stampings in the most modern and effective manner, and
the results attained have been the subject of very favourable
comments. Reports from various quarters go to show that everything
supplied by your company has in every case given through
satisfaction and upheld our reputation for sound and reliable
manufacture.
It may seem somewhat out of place during these serious and unhappy
times to offer or receive congratulations on the results of the
trading of a “controlled” business; at the same time it is
obviously necessary that an undertaking employing over 4,000 hands
must take the greatest care to safeguard its resources, or it might
very soon become ineffective and a danger rather than a help to the
Government, both during the war and also when it is
over.
Assisting the Government and its Allies.
After peace is declared
(and I am sure we shall all be only too happy too hasten its
advent) the Government will require the best efforts of its
workshops and business undertakings to absorb the men returned to
civil life from the Army and Navy, and to produce every requirement
within our shores and not have to purchase abroad, and also to
manufacture for export the greatest possible quantity of goods that
can be sold to other nation and our Colonies. such a result is not
to be obtained by badly-managed or bankrupt concerns, and as
credits will have to be extended after the war, large sums will be
required to finance the stock during manufacture and until cash is
received in payment. to look after the future and at the same time,
give the Government the best possible value has not been an easy
matter, and it will no doubt be increasingly difficult if the war
is to continue much longer, so that if our profits are smaller than
some would consider sufficient, or not on a par with those of some
more fortunate concerns, it can at any rate be taken for granted
that the efforts of your management and staff have have been
unceasing in their desire to assist the Government and its Allies
in their big task. A reputation for good honest work will be a
valuable asset in the immediate future, and we feel confident that
the product of the Longbridge works will hold its own and amply
repay any expense we have incurred to safeguard our good
name.
Output Still Increasing
As mention in the report,
our output is still increasing, and the sales for the month of
March were over double those of March 1915. As to how much further
our efforts can be or should be extended it is not possible to say,
but it is a comfort to know that the requirements of our big Army
and Navy, and those of our Allies, are being day by day more easily
met within our shores, and that it is not now so necessary to go
elsewhere for our munitions. All this is to the credit of the
business undertakings which have done so well, and made such big
efforts under very trying conditions.
During the last financial year the works were only closed for a few
days for holidays and repairs, and in some of the departments the
strain of working six nights or seven days a week was severe. Since
early in December, 1915, the Saturday night shift and Sunday work
has been suspended at the suggestion of the Ministry of Munitions,
with the result that a number of the employees have left to go to
other works still continuing the practice. Some general ruling on
such an important matter is necessary, as the double pay received
for weekend work is apparently a big temptation.
Advice to Workers
Wages and the cost of raw
materials have risen to, in some cases, double what they were in
pre-war times, but in many directions the removal of the
restrictions on output and the work of a simple and easily-learned
character done by unskilled labour have resulted in considerable
reductions in the final cost, proving definitely that if the
workers would only throw off the yoke of the section of their
unions who preach “restriction of output as the only means of
regulating work and preventing non-employment” they would be able
to earn greatly increased wages and ensure employment for every one
by making it possible for a large portion of the goods that are
now, or were previous to the war, purchased abroad to be made in
this country. this is a much more important matter than a fiscal
policy, and more hopeful if it could be brought about than a
combined effort to restrict German and Austrian competition,
because it would be economically sound and of a lasting character.
It seems to me that the present would be a fitting opportunity for
the employers’ federations and the workmen’s union to get together
and discuss the encouragement of the better instants among workers
generally and the conditions under which it would be practicable,
after we have beaten the enemy in a military and navel sense, to
pull together and beat them in manufacturing and commerce. A return
to the old narrow-minded ways, small and uniform wages, restricted
and misdirected efforts, seems impossible. Both sides would have to
make changes, but the possibilities will be so enormous for each
party that any throwing overboard of ancient and out-of-date rules
would be more than amply repaid. The cost of the war is enormous,
and we have not yet finished with it; but if we can commence
operations in a well organized way immediately the struggle is
finished, the losses will be wiped out in a very short time.
Your directors look forwards to being able to present a similarly
satisfactory statement at the next annual meeting, at the same time
doing their requirements at a fair and equitable cost. I now have
pleasure in proposing:- “That the report and accounts, as printed,
for the year ending November 30 1915, be received and
adopted.”
The resolution was carried unanimously.
The retiring director, Alderman Albert Ball, JP., and the auditors,
Messrs. Carter and Co,. having been re-elected, a vote of thanks to
the chairman concluded the proceedings
___________________
July
1918
Company
Report
The fourth Annual General Meeting of the
Austin Motor Company (Limited) was held on Thursday at the offices
of the company in Northfield, Sir Herbert Austin, KBE (chairman and
managing director), presiding.
The Chairman, in the course of his remarks said:-
I have pleasure
in being able to report that the operations of the company continue
to expand, and during the Period under review the following
increases have taken place in comparison with the preceding 12
months:-The employees, 125 per cent; turnover, 97 per cent; assets,
64 per cent. These extensions have naturally necessitated a
proportionately heavy increase in capital expenditure in our works,
which we now call the South
Works.
and at the instructions of the Ministry of Munitions we have
erected and equipped, at their cost, two very large Works adjacent
to the South
Works
which we have named the
‘North’
and ‘West’
works. These two works are served by a completely new power units,
boilers, engines, coolers, etc, situated to the east of North
Works. Each Works has self-contained canteens, ambulance stations,
etc, fitted out to the most complete manner. Suitable siding and
station accommodation for goods has also been provided. These
three, works have been operating at very high pressure, day and
night, during the whole of the period.
Site
for Further Extensions.
Some 60 acres of our vacant land is been
levelled. The cost of this work has been rather heavy, owing to the
large amount of material it has been necessary to deal with, but
the work is drawing to a close and will certainly provide, when
finished, one of the most satisfactory sites in the country.
To provide some portion of the accommodation necessary for housing
our very large number of employees, we have purchased two farms
between the works and the village of Northfield on which we have
erected 252 houses and a complete and up-to-date laundry. The
portion of the property occupied by the houses has been laid out on
garden suburb lines, with proper drainage, gas and water systems,
and tar macadam roads, footpaths, etc. The whole of the houses were
completed and in occupation before November last (1917), and
although the cost of carrying out this work has been somewhat high,
the advantages gained by being able to provide for nearly 1,000 of
our employees have warranted the expenditure. Sufficient land is
still available for the erection of an additional 500 to 600 houses
but it is not proposed to do any further building until conditions
affecting the cost are modified. The position occupied by this
estate is ideal for the purpose. and it has created a considerable
amount of public attention and approval.
A building and grounds, formerly in use as a school were purchased
at Bromsgrove and fitted up as a hostel This is in occupation and
has been a very great conveniences and assistance. Also, to obtain
sufficient labour, a large fleet of motor-buses have been built and
are running to various centres.To accommodate these a large garage
at the works, and two other garages at Bromsgrove and Belbroughton
have been erected and equipped.
Preparations
For Trade After The War.
These extensions have naturally made it necessary to engage a
suitable staff to control the work, and throughout the whole of the
period we have endeavoured to keep in view a programme for post-war
operations which would enable us to employ and make use of the
three works and, as far as possible, all the staff and employees.
We have drawn up a definite scheme settled on the various articles
we intend to manufacture, have designed prepared models, and we are
now actively engaged in fixing up suitable relationships with
agents and representatives in all parts of the world in which it
will be possible for us to operate when peace is declared. I
consider that we have to-day one of the most complete and efficient
works organisations in the Empire, and we except to be able to
occupy a very strong and important position in the markets where
the sale of the goods we have decided to manufacture will be
effected. In spite of the big extensions in our operations, I am
pleased to be able to report that the company is not burdened with
any mortgages or Debentures other than the small amount received
from the Government towards the cost of building the
dwelling-houses on the estate.
“I regret that the necessary restrictions placed on publishing
figures and also the fact that we have not yet reached a settlement
of our claims for allowances under the Munitions of War and Finance
Acts prevent me from giving full details of our doings, but I feel
confident that when the time comes we shall be able to place on
record a statement which will in every way satisfy our shareholders
and give them reasons to be proud of their connections with the
company.
___________________
14th
July 1919
Annual Meeting
The fifth Annual Meeting of
the shareholders in the Austin Motor Company (Ltd.) was held at the
registered office of the company, Longbridge Works, Northfield,
Birmingham on Thursday. Sir Herbert Austin, KBE, MP, the chairman
of the company, presided.
The Secretary (Mr A W
Jones) read the notice convening the meeting, and the report of the
directors for the ending 31st december, 1918, which contained a
recommendation for a 15% dividend upon Ordinary shares, was then
unanimously adopted.
Lieut. - col. Kayser
retires from the board this year and did not offer himself for
re-election. the other directors and officers of the company were
unanimously re-elected, and a vote of thanks to the chairman was
passed by acclamation.
Sir Herbert Austin
addressed the shareholders as follows:- When we held our last
general meeting, the Allies had turned the tide of battle and we
were able to regard the future with a great deal more confidence
than we had ever experienced at any former period of the war -a
confidence justified by the glorious and complete defeat of the
enemy on all fronts shortly afterwards. this confidence was not
born entirely of the prowess of our Army and navy, although we have
never in our history ben quite so proud of the two Services as we
have been during the late war, but also because we had at last
found that we were able to supply these Services with war material
of all kinds in greater quantities and of better quality than our
enemies could provide their men with.
Output of War Material
I
suppose I may be pardoned if, on behalf of the staff and personnel,
I say that this confidence was to some small extent due to the
success of the work done at Longbridge since August 1914, a period
of almost five years, through to many of us it seems to have lasted
nearer twenty. I have on previous occasions during the struggle had
to deal with the subject of the efforts at Longbridge in very
guarded terms, but now that Peace is signed I would like to take
the first opportunity of meeting the shareholders together, to give
them some details of what has happened in the works since July
1914. In the first place, the outbreak of war found us in the midst
of a very busy period, engaged on the manufacture of a throughly
satisfactory car, but cancellations on all sides soon made it
imperative to search for other means to keep the works employed. It
was found in the direction of supplies of various kinds, such as
ambulances, lorries, armoured cars and special vehicles, to the
russian Government.
Towards the end of 1914 the
supply of small high explosive shells to own forces became of
supreme importance, in fact, the want of this item was one of the
principal causes of bringing into being of the Ministry of
Munitions in the spring of 1915. The company was fortunate in
obtaining a small contract early in 1915 for these shells, and to
be able to demonstrate to the War Office that they could
successfully make them of better quality and at a much lower cost
than was previously considered possible. It was this success which
brought the company prominently before the War Office,and resulted
in orders being afterwards placed in such quantities for large and
small shells, aeroplanes and aeroplane engines, guns, lorries,
ambulances wagons and carts of various kinds, armoured cars,
electric power sets, and a multitude of small details, that the
works had to be extended continuously.
Extension
of Works and Increase in Employees
At
the outbreak of war, our staff and personnel numbered 2,638, and in
March 1918 (the period of our greatest effort), we were employing
21,000 men and women. The workshops have increased from an area of
71/2 acres to iver 38 acres and, in addition, we were employing
several thousands of work people in other works, entirely on our
contracts and under our supervision. The freehold land covered by
and surrounding the works now amounts to over 300 acres. The gross
value of our annual output had risen in 1918 to nearly £10,000,000
or about twenty times the best pre=war
year.
Naturally, this was not
accomplished without a great deal of worry and hard work,
particularly for certain members of the staff, of whom I am pleased
to mention Messrs, Harry Austin, superintendent engine erecting
shop; H Bradshaw, superintendent 18-pounder shell shop (nights);
Myddleton Briggs, works engineer; K Brozyna, chief of experimental
department; H C Corber, superintendent body shop; J F Cutts,
superintendent tool room (nights); A V Davidge, designer; J J Day,
cashier. W Dawson, superintendent 8in projectile factory (nights);
F C Dolbt, chief designer (jig and tool); J C Haefeli chief
experimental designer; A J W Hancock, designer; J Hanny, chief
inspector; C Hervey, superintendent 18-pounder shell shop (nights)l
Holbrook, sales department; A W Jones, secretary (days); D Royce,
chief store-keeper; Maurice William, production
manager.
One member of the staff Mr
MacLellan was awarded the OBE, andit would, in my opinion be quite
justifiable on the part of the Government if they were to give
several other members of the staff who did so much to help to win
the war equal recognition of their
serviced.
When the Armistice was
signed, an almost similar wholesale cancellation of contracts took
place as occurred in 1914, but with important differences that the
relative size of the works and the problems involved were immensely
greater, and the efforts that have since been entailed seem to
those concerned more difficult and more worrying than at any period
during the war.
The work the company was engaged on at the end of 1918 for the
Government was so entirely different to our staple trade, that a
large portion of the plant has had to be sold, other machines and
appliances purchased, and nearly every one of the machines retained
has had to be moved to some other position. Workshops have had to
be altered and some others built to bring the factory back again to
a balanced condition but, happily, this work is now nearly
finished, and this week we are able to say with some satisfaction
that we have completed our first batches of chassis of the new 20hp
car and the agricultural tractor - some six weeks late, but still
of such satisfactory character as will, I feel sure, well repay
those whom we have had to keep waiting. During the period of
changing over, we have been compelled to finish off a large amount
of work belonging to our various Government contracts, and we are
still engage on this, particularly in the aeroplane department - in
fact, this work has considerably interfered with and delayed our
post-war operations.
The
Outlook - Success of the Austin Tractor.
The shareholder will, I
feel sure, be more interested at the present time in some account
of what our future prospects are and, in this direction, I am able
to give them some figures and facts which should be ample to prove
that, given reasonably good times, the works at Longbridge will be
able to show as good a result in the future as they have in the
immediate past. when the fighting ceased, and we were relived of
some of our Government obligations, we were fortunate in having in
readiness a programme for post-war manufacture with a definite
policy for sales, and a tried and tested car and tractor which
allowed our staff to set to work at once and secure contracts from
all parts of the world The orders on our books today represent, in
gross value, over £6,000,000 and, were we able to accept all we
have been offered, we could easily treble this
amount.
The success of our tractor
in several important trials in France - where it was able to beat
all comers - has warranted your directors in arranging for its
manufacture in the country as, owing to the restrictions on
importation, no other means for securing the market were available.
to allow of this being done satisfactorily, the capital of our
French Company is being increased to 6,000,000 frances. A suitable
factory and additional land have have been purchased at Liancourt,
near Greil, on the main line to Parls. It is hoped that this
factory will be equipped and in full running order by the middle of
October, capable of turning out 2,000 tractors annually.
Arrangements have already been made for practically the whole
production to be handled by the eminent firm of agricultural
engineers Messrs Pilter, of Paris - the chairman of which company
has accepted a position on the board of our French Company.
Controlling
Interest in a Belgian Company
Together with some Belgian
friends of the directors, a small Belgian Company has been formed
called “Austin Motor Societe Anonyme,” to handle the sale of the
company’s products in Belgium. The company has a controlling
interest therein, and a considerable number of lorries have already
been sold and contracts secured for cars, tractors,
etc.
The shareholders have, on a
previous occasion, been advised of the fact that the Company were
compelled, in 1917, to purchase land adjoining the works and erect
a number of workmen’s houses (252), together with a club house and
laundry. these house have been a great help and, as proving the
need for the Government housing scheme, although the rents are
necessarily high, there is always a long waiting list. As outlined
in the prospectus sent out in connexion with the issue of the new
capital in February last, the company have exercised their option
for the purchase of the north and west works from the Government,
on terms which directors consider quite
satisfactory.
At this opportunity, I
would like to emphasize the value of cooperation at the present
time. It is more necessary now than at any period of the war for
the members of our Empire to pull together. The signing of Peace
has put an end to the alliance so far as commercial matters are
concerned, and we have now to look after ourselves under conditions
which are not too easy. Many of our colonial and foreign markets
have been fed during the past five lost no opportunity of
popularizing their wares. These markets must be recovered quickly
in spite of our heavy expenses in the way of increased labour and
material charges. Apart from our individual efforts we can, by
cooperating together, meet the “common enemy” on more equal terms,
and it is here I would strongly urge all our manufactures to join
the Federation of British Industries - already the largest and most
powerful association in the world. Mere joining, however, is not
enough; an active interest is necessary, with a generous support of
the weaker and more unfortunate members.
___________________
January
1920
Extraordinary
General Meeting 20th January
The object of the meeting was to pass a
resolution to increasing the capital of the company by the issues
of £1,000,000 Six per Cent “B” Preference shares. It was carried
unanimously.
The Chairman and Managing Director (Sir Herbert Austin KBE. MP) In
introducing the resolution he made the following remarks:
Gentlemen, Those of you will remember that before the outbreak of
war in 1914 the company commenced to increase the capital by
£250,000. But with the outbreak of war, many of the contracts on
hand at the time were cancelled or reduced. Demand from our own
Government and from Russia soon waxed, to the utmost resources of
the works, and in a few months necessitated big increases in the
building and plant.
It was in the early in 1915 the urgent demand for shells developed
into a national emergency, your company stepped into the breach,
with other firms and so commenced the manufacture of 18 and 15
pounder shells in large quantities. The arrangement made at
Longbridge were so successful that almost every shell-making firm
in the country was glad to inspect the methods employed, and we
were instructed by the War Office to produce and circulate full
details of the tools and operations we used to other contractors
for their guidance. In 1916 an 1917 the orders for the 8 inch and
18 ponders shells received could not be delivered in the time scale
required. The Government because we did not have the capacity
agreed to built two very large workshops, which are now called the
North and West Works.
Although the shell production was increased considerable, the
demands were made to increase the facilities for the manufacture of
aeroplanes and aeroplane engines, armoured cars, lorries, and
electric lighting sets at the South Works. Two railways stations
have also been laid down adjoining the works, and special train
services installed to deal with the passenger and goods traffic.
During the past year, the total number of persons employed exceeded
20,000, and the output reached the very large sum of
£9,276,717
A definite policy in advance of the cessation of hostilities, a
scheme was drawn up and put into operation, which has resulted in
us having orders in our books, two months after the armistice was
signed, for nearly £4.000.000 of cars, lorries, tractors, and
lighting sets. The orders have been given by the keenest and most
important firms in the home country, in the Colonies, and in
foreign market. Many thousands of trials have been given of the new
models, to the complete satisfaction of every one, and orders
continue to stream in by every post.
Most of the foreign and Colonial orders are forPeriods of three
years, at increasing figures. At no time in the history of
automobile manufacture in this country has such enthusiasm been
shown by buyers, or such orders placed, and the resources of the
whole workshops and plants at Longbridge will be taxed to the
utmost. Unfortunately, it will take about four months to change
over the shops and rearrange the plant for the new manufacture, but
this is now in full swing, and I confidently expect the works will
soon be as busy on the munitions of peace as they were a few months
ago on munitions of war.
I am feeling certain that the new capital would be willingly
subscribed, your directors have arranged for the options to
exercised for the purchase of the North and West Works, the terms
arrange in the estimation of your board, being quite satisfactory.
It is considered that the works are in full swing again they will
form the largest and most complete automobile plant in the British
Empire. The new capital is being taken up by the Beecham Trust
(Limited), of 218 Strand London WC. on terms agreed by your
directors on behalf of the company, and it is proposed by the
Beecham Trust (Limited) to issue the offer for sale to the public
in a few days time.
21 Jan 1920
AUSTIN MOTOR COMPANY LTD
An Extraordinary General
Meeting was held on Wednesday 21st January 1920 for the purpose of
passing a resolution to increase the capital of the company to
£5,000,000 by the creation of 3,350,000 new shares of £1 each. Sir
Herbert Austin KBE, MP proposed the resolution, which after been
seconded by Mr Harvey Du Cros jnr. put to the meeting and carried
unanimously.
The
Company War Work
A year ago we had finished
the war, and we were in the midst of cleaning up our munitions
contracts. We had five years of extremely successful manufacture of
very large quantities of shells, guns, aeroplanes, armoured cars,
and other kinds of war requirements, but practically nothing of the
goods we made in pre-war times or proposed to make in the future.
Our works and our plant had grown to over ten times their pre-war
dimensions, and, for this reason, we were very naturally looked
upon as a war-time production. The war terminated suddenly, just as
at a period when we were at our greatest production. Our contracts
were cancelled at very short notice, and this made it imperative to
obtain temporary finance. Although we had produced during 1918 an
output value at nearly £10,000,000 and your directors had complete
confidence in the future, they considered it necessary to
reorganise and equip the works for standard manufacture to prove
their worth in the hands of our customers, and secure contracts and
orders throughout the world.
Our
Works and Capacity
I believe we were the first
firm in this country after the signing of the Armistice to publish
our programme and present to the public well-tested post-war
models. We have for instance attained an output of nearly 100 20hp
chassis per week long before the Olympia Show in November last, and
to-day we should have arrived at double that number. The works
cover a total area of roughly, 53 acres. A large steel foundry has
been added, capable of turning out 5,000 tons of the finest steel
castings per annum. A very large sheet metal press shop has been
built and equipped with plant for dealing with the meal panels and
frames of the carriage-work, equal to the latest and most advanced
American practice. One press alone is of sufficient capacity and
powerful enough to cut and form the complete side of a car at one
revolution. A very large and complete hardening and heat-treatment
shop has been laid down, capable assuring the most accurate results
that can be demanded in this very important department of motor-car
manufacture.
The
West Works has been planned and extended for the making of the
carriage-work required for the cars and lorries, and is in my
opinion, unequalled in great Britain for that class of work. It is
capable of dealing with an output of 250 complete carriage bodies
per week. Other shops have been equipped for the building of the
wheels, hoods, glass screens, and radiators. The forge shop has
been almost doubled. A new blacksmiths’ shop has been built, and
all the work, and all the work of this character concentrated in
it. A large area has been allocated and equipped for a service
department, which controls the stores for spares and the repair
shop. In addition to the above, the whole of the plant in the North
and South Works, amounting to 2,500 machine, has been put into
correct adjustment, re-fixed into its proper position, and other
plant purchased or built to balance up the
production.
Works
Established in France
During the past year your
board decided to follow up the success of their agricultural
tractor in France in various competitions and trials by
establishing works there, capable of supplying France and the
french Colonies and Protectorates. These was necessary in order to
overcome the high duty, rate of exchange, and transport charges,
and also to meet the natural desire of the French farmers to
purchase tractors made in France. A very suitable works, together
with about 325 acres of land, were purchased at Liancourt (Oise),
midway between Paris and Amiens on the Nord main line, in a
district noted for its industrial advantages. The whole of the
power plant, boilers, engines, electric transmission and lighting,
machine tools, jigs, fixtures, gauges, patterns, drawings and all
other equipment has been sent over from Longbridge, and is now
completely installed and commencing to manufacture. The company own
about three-quarts of the capital in the French company, and the
remainder is distributed among the shareholders of the Austin Motor
Company.
To handle the prospective trade in Belgium in a satisfactory
manner, a company called “Austin Motor Societe Anonyme” was formed
during 1919 in Belgium with a capital of 500,000f., more than half
of which is owned by the Austin Motor Company. A very successful
season has just been terminated.
A careful examination of
our records shows that it would be necessary to produce a value in
1929 of cars, lorries. tractors, electric equipment, aeroplanes
etc., of over £10m to satisfy even approximately the demands of our
agents and customers. It is for this reason that we need the extra
working capital to complete the pending
orders.
Goods
We Are Producing
Our
schedule of production, necessitated by the orders already on hand,
calls for a weekly output of 200, 20hp cars; 100 agricultural
tractors; 60 cwt lorries; 500 electric lighting sets; and a large
amount of switchboards and other electric equipment. There is also
capacity for 25 complete aeroplanes per week, although we have a
number under construction, the output must necessarily be somewhat
restricted until the whole subject of civil aviation is placed on a
commercial footing recent tests of a single-seater biplane which we
have designed have proved very successful.
I do not propose to take up
your time by lengthy reference to the cars, lorries, tractors, and
the lighting sets, but I consider it would be unjust not to give
you some few details of their excellence. Dealing first with the
car, we have built and delivered more than sufficient to prove
unquestionably that it is a remarkable improvement on any car that
we have previously produced. It is very powerful, fast a splendid
hill climber, very silent, and owing to its light weight, is
economical on fuel and tires. In our frank opinion there is no
better four cylindered car made at the present time. The 30cwt
lorry is of equal merit, as it largely follows the car, the power
and change-speed unit being identical. We have made exhaustive test
and have just the same confidence in it as we have in the 20hp car.
The agricultural tractor has been tested, over a period of nearly
two years. and has obtained the first place in all the competitions
held recently in Great Britain and France. The results of the
Lincoln trials held in September, 1919, have just been published.
This trial of agricultural tractors was the most important that has
ever been he;d anywhere, and I am pleased to be able to say that
our tractor leads the list in its class, once more proving its
superiority. It has been throughly demonstrated through this
country, France, Belgium, South Africa, South America and other big
centres. It is admitted by experts and famers everywhere to be
unquestionably the best. and most successful small tractor produced
up to the present. We hope to be able to produce not less than 200
per week in 1921. Many of the parts of the engine interchange with
the car, so that the stock of spares carried by agents and clients
can be reduced and considerable economies
effected.
Electrical
Equipment
We
have recently completed the test and passed into mass production of
a complete automatic lighting outfit, which will give current
sufficient for a small country residence, and which we are selling
in very large quantities at an inclusive price of about £120. The
possibilities of the sale of this type of outfit are enormous. We
have three or four other sizes of automatic lighting sets of larger
dimensions, scheduled for production, which will enable us to
accept orders for outfits up to those required for village and
small township lighting.
To sum up, I am sure the results given will give you confidence in
the future, the same confidence that your directors feel in asking
for further capital, with the object of achieving even greater
success; and I believe you will go away with the definite feeling
that they have done the best possible in the your interests, and
that you have every reason to feel secure as to the
future.
June 1920
Sixth
Annual General Meeting
The sixth Annual General Meeting of the
Austin Motor Company was held yesterday at Longbridge Works,
Northfield, Birmingham. After the Secretary Mr A W Jones had read
the notice convening the meeting, the directors’ report and
accounts for the years ending 1916, 1917, 1918 and 1919 were
formally adopted.
The Chairman Sir Herbert Austin KBE then addresses the meeting as
follows:- Ladies and Gentleman. This period covers four very
strenuous years, during which an immense amount of work was done,
but the most trying time was undoubtedly the year 1919, as owing to
the difficulties experienced in securing the cooperation necessary
from outside contractors to make a rapid transformation to
peace-time manufacture, the staff and employees were called upon
for efforts even more onerous than at any period of the war.
It is a great relief to say that these efforts have not been in
vain, and the policy and programme laid down before the Armistice
have been entirely successful. In making this statement I do not
wish to suggest that there is any intention of relaxing those
efforts. As a matter of fact, the enthusiasm and determination is
greater than ever, but I consider that the thanks of the
shareholders are due to those responsible for the work done to
place the company in the proud position in which it stands
to-day.
After the exhausting period which the whole world has lately passed
through it is difficult even for the most optimistic to imagine
that the future will not bring some troublous times, but in such a
case the thoroughly efficient organization and equipment now
possessed by the company, backed up by the determination of its and
employees, gives the best possible security that could be demanded
of an industrial undertaking.
Accounts
1920-21
Austin
Motor Company Accounts
The report of the Austin Motor Company
states that the trading loss, before providing for depreciation of
stock and tools, for the two years 1920 and 1921 was £381,923
(including normal depreciation of £123,824). The amount written
off, stock and tools, the debt due by the Socete Anonyme Austin,
and compensation for delayed payments, etc. is debited in the
balance-sheet at £1,951,924.and after deducting the balance brought
forward and reserves there is a debit to profit and loss account of
£1,883,601. the directors consider that it will be necessary to
depreciate the following items under the headings of investments at
£212,441 along with the Longbridge Estate and flying ground at
£247,842 to the extent of about £300,000, and when more normal
conditions prevail to review the value of all assets.
Since the date of the accounts the first mortgage notes have been
paid off, and a first debenture issued for £200,000. The bankers’
loan has been secured by the issue of second debentures for
£285,000, and the Government mortgages £248,000 has been exchanged
for third debentures, and about £1,106,650 of the sums due to
sundry creditors will be converted into an issue of a fourth
debenture.
___________________
January
1923
American Motor Car Competition.
Sir H. Austin On Need For Combination.
In the course of an address
at a meeting of the Midland Branch of the National Union of
Manufactures in Birmingham today, Sir Herbert Austin MP., said he
anticipated that this year we should import 50,000 American made
motor vehicles, compared with a home production of 75,000.
In his opinion there were too many motor-car manufactures in this
country, and they would probably have to combine and economise to
reduce costs. The chief factor in the remarkably low selling price
of American cars was the narrow margin of profit which manufactures
of component parts permitted themselves. In some cases their
charges hardly covered cost. Much could be done by British workers
emulation American employees, who worked twice as hard as was the
practice here. Mr Wilfrid Hill expressed the view that cooperation
among the more substantial firms in the motor industry might be of
value. He mentioned that only seven motor firms made profits last
year, and he foresaw further losses unless there was amalgamation
and collective production.
___________________
03
January 1925
Financial
Results
An estimate of the results of the Austin
Motor Co. Ltd trading for the year ending 30th September 1924 has
been issued showing a gross trading profit, including discounts and
interest received of £470,902. The statement added that the sales
to date are satisfactory, and the whole of the output for 1925 has
been contracted for by the distributors and
agents.
02 September 1925
Austin Motor Company and General Motors
Corporation
In view of the conflicting
statements that have appeared as to the position of the
negotiations between the General Motors Corporation of the United
States and Canada and the Austin Motor Company, we are authorized
by Mr J D Mooney, vice-president of the General Corporation, and
Sir Herbert Austin, chairman of the Austin Company, to state that,
while negotiations are in progress, no definite agreement has yet
been arrived at. It is hoped, however, that the situation may have
developed sufficiently to permit a detail statement been published
on Friday 4 September.
A works’ gala, to celebrate
the coming of age of the Austin Motor Company, Ltd. was held on
Saturday, at Birmingham, and 25,000 people, consisting mainly of
employees and their wives and families, were present. A sports
programme was arranged, including several motor-cycle events and a
decorated car turn-out. In its first year the Austin works employed
270 person, covered 2.1/2 acres, and had an output of 120 cars.
To-day the company employs over 8,000 people, the building extend
over 62 acres, and last year the output was approximately 18,000
cars.
21 September 1925
Accounts ending 30 September 1924
The accounts of the Austin
Motor Company for the year ending 30th September 1924 showed a
trading profit, including discounts and interest, of £470,903 which
compares with £381,640
24 September 1925
Austin Motor Capital Scheme
The particulars were given
in the press for the capital reorganization of the Austin Motor
Company, under which it is proposed to reduce the capital from
£3,347,909 to £1,950,000 the amount of lost capital written off
being £1,397,909. On this basis it is estimated that on a profit of
£500,000 for the year ended 30th September a dividend of 10% would
be paid on the new Ordinary shares of 6s 8d each, leaving for
income-tax reserves and working capital of
£285,144.
___________________
21
August 1926
Company
Results
The gross trading profits of the Austin
Motor Company for the year ending 30th September were £748,800
(against £470.930). from which has to be deducted various charges,
leaving a net profit of £447.851(against £161,174). This reduced
the debit balance from £1,438,404 to £990,552. Various assets will
be written off including £ 165,496 off the Longbridge Estate
Laundry and the Flying Ground.
The scheme for effecting a reduction in the capital of the Austin
Motor Co. Led. to £2,150,000 by writing off £1,200,000 was
submitted yesterday to meeting of the Preferred Ordinary and
Ordinary shareholders, and subsequent to an extraordinary general
meeting in Birmingham. Because a number of speakers criticised the
proposal it was decided to adjourn the meeting.
In November 1927 the company tried again, this time going to
Court.
Chancery
Division
His Lordship confirmed the petition from
the Austin Motor Co. Ltd. for the sanction of the Court to a
reduction of the capital of the company.
Mr Bennett, KC and Mr Ceil Turner appeared
in support of the petition.
Mr Bennett said that the company, which
was formed in 1914, had a nominal capital of £5,000,000 of which
£3,350,000 had been issued. It was proposed to cancel
£1,200,000.
The losses which the company had sustained were due to the trade
conditions at the end of the war. The company had gone in for mass
production, and incurred heavy expenses in changing their factories
over from war-time conditions to peace-time conditions. Then came
the “slump” in trade, and the company suffered heavy loss on that
account. The company had, however, been in a prosperous condition
since 1922, and had been making annual
profits.
His Lordship made an order confirming the proposed
reduction.
___________________
October
1927
Austin
Distributors & Dealers
Annual Dinner
Responding to the toast of “The Austin
Distributors and Agents,” proposed by Sir Herbert Austin, Mr
Stanley Anderson, of Johannesburg, said that in South Africa, with
the exception of Natal, people showed preference for American cars
of higher power than the usual English models. But in the Transvaal
we were making steady progress, and I recently persuaded one of the
most anti-British Nationalist to buy a baby Austin. He gave it to
his wife and she was delighted. (laughter and cheers)
Speaking at the
annual dinner of the Austin Motor Company at the Connaught Rooms
Covent Garden London, on the 17th October 1927, Sir Herbert Austin
said the company was preparing to turn out a light six-cylinder car
in large numbers. A German firm had been given permission to
construct the “Austin Seven” They were expecting to make
arrangements for the manufacture of the car in France and the
United States, as there were no prospects of the company being able
to export to either of those market.
___________________
August 1928
British cars for New South Wales
In the face of strenuous
opposition from America interests, it has been decided that British
cars are to be used for the first time in the New South Wales
Government Ministerial fleet. The existing American machines are to
be scrapped. Orders have been places in England for five high-grade
saloons cars, and a 20-70hp limousine has already been delivered to
the New South Wales Premier. The decision is of interest, because
it is stated that no British car has ever before been used by
Ministers of the Crown for their official
journeys.
4 October 1928
Paris Motor Show
The
French “Austin Seven”
Great interest was aroused
at the Paris Motor Show with the first showing of the new Rosengart
light car of 7hp, which is to be manufactured in quantities. The
cheapest model which is a two-seater is priced at 14,900 francs
about £120. The chassis is simply that of the famous Austin Seven.
of which the Rosengart Company have acquired the manufacturing
rights in France. It is identical with the Austin design at
practically every level. French coachwork, very wide and roomy and
highly coloured, is fitted, together with wheel discs and a luggage
locker, and it makes an attractive little vehicle, although the
overall appearance was spoiled by the square radiator. If the
performance of the Rosengart is equal to that of the prototype it
should be certain of success.
___________________
May 1929
Motor Trade & Duties
Sir H Austin replies to Labour Leaders
Sir Herbert Austin replied
yesterday to the speeches made by Mr MacDonald and Mr Snowden on
Wednesday with reference to the letter in which he pointed out the
possibility of the Motor Works having to close down if a Socialist
Government repealed the McKenna duties. Mr MacDonald described the
letter as a “threatening and blackmailing” one and Mr Snowden
reminded Sir Herbert Austin that the Emergency Powers Act gave
“drastic powers to a Government to deal with anybody who deliberate
conspired to interfere with trade.”
In a statement to the Press association, Sir Herbert Austin said :
“I am not in any way disappointed; in fact, I am very much
interested to see in the newspapers that both Mr MacDonald and Mr
Snowden are assisting me in bringing to notice of the electors in
the country the dangers which will accrue if the McKenna duties and
safeguarding measures now in existence are repealed. I consider it
my duty, as the head of a big industrial company, to draw the
attention of the electors, especially my own workers, to this
matter at the present moment, because it would be no use to warn
the electors when the damage had been done after the General
Election. Then they would wish that they had voted
differently.
“I am quite willing to leave to the judgment of the electors,
especially those who know me, as to whether the letter I wrote is a
blackmailing letter. It was certainly not written with that
intention. Every expression I used in the letter was the result of
very careful consideration, because I knew it would be attached by
those who are anxious to prevent the Conservative Party from taking
up the reins of Government again and completing the task which they
have so ably begun and carried through in the past four and half
years. It most seem rather strange to the electors to read such
expressions as those by Mr MacDonald in his speech, particularly
the statement that he will not yield to any capitalist
intimidation. Happily, we are not living in a country where efforts
of that kind would be of any avail at election
time.