Stinson to Cord

Edward Anderson ("Eddie") Stinson. flyer and plane manufacturer, and Errett Lobban ("E. L.") Cord, motor car manufacturer, celebrated their 35th birthdays nine days apart last July. Both have achieved large business success in their fields. But last week Mr. Stinson acknowledged Mr. Cord to be the greater executive. He did that by recommending that stockholders in his Stinson Aircraft Corp. sell out to the Cord Corp., by stating explicitly: "E. L. Cord has been one of the outstanding figures in the automotive industry during the past five years. ... He now intends to enter the aviation field in his usual forceful manner."

No promotional "hokum" was this. Mr. Cord, an artful automotive engineer, a great salesman, an inspired executive and a wise financier, took over the management of the Auburn Automobile Co. in 1924 when it was building obsolescent cars and losing money. He reorganized manufacturing processes, designed new models,* perked up the sales force. Since 1926 he has made Auburn show a yearly increasing profit, and, even more momentously, sent its stock from a low of $31.75 in 1925 to a high of $514 this year./- Since then he has been buying parts manufacturers -- Lycoming Manufacturing Co. (automobile and aviation engines), Columbia Axle Co., Duesenberg Inc. (motor cars, submarine and speedboat motors), Limousine Body Co., Central Manufacturing Co. (bodies) -- and now the Stinson Aircraft Corp. There have been no direct mergers of these enterprises, but a consolidation of their activities as subsidiaries to the Cord Corp., $29,000,000 holding company which Mr. Cord created last summer.

* Latest product: the Cord front-wheel drive car.

/- Last week there came to term $950,000 of Auburn notes. Holders had been able to buy Auburn stock at $83.91 per share.