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.
____________________________
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.
____________________________
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.
_______________________________
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.