G. M. Gets the Cash

G.M. Gets the Cash With the bogy of John L. Lewis looming big and black over bearish Wall Street, the market for new stock issues had seldom looked colder. But General Motors Corp., hard up for ready cash to carry out its $500 million reconversion and expansion program (TIME, Nov. 18), plunged in anyway, found the water was not as cold as it looked. G.M.'s new issue of $100 million of preferred stock, largest new-money preferred issue of all time, was snapped up in short order last week. In a few hours, the stock ($100 a share, 3.75% annual interest) rose as much as 1 1/2 points in over-the-counter trading. But the fact that husky G.M. withstood the plunge was no convincer to less virile companies. In the last month, 13 companies which also needed cash had dropped plans to issue common stock. Until the water got warmer, it looked as if the cheap way to raise cash, by common stock, was out.

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