Y. C. M. & G. M. C.

Rumor had it (and the chiefly interested party--John Hertz--refused to make denial), that the Yellow Cab Manufacturing Co. -- makers of the vivid yellow things that flit the streets of the nation's cities as their meters tick off fares--was to be merged with the General Motors Corp.

The Yellow Cab Manufacturing Co. controls the Yellow Coach Manufacturing Co., (makers of busses) and the Yellow Cab Co.'s in this country. The stock of the Yellow Cab Manufacturing Co. is worth about $28,000,000. The rumor as promulgated in Chicago had it that the merger was to include the omnibus company which controls the Chicago Motor Coach Co., operators of busses and the Fifth Avenue Coach Co. (Manhattan), also bus operators -- in which case it would be a $60,000,000 affair and put General Motors into the operating as well as manufacturing business, taking control of the interests of John Hertz, who some years ago, as a boy of twelve ran away from home in Austria and made a fortune.

The transaction was expected to be carried out by an exchange of stock, 1 share of General Motors (price about $84) for 1 1/2 to 2 shares of Yellow Cab Manufacturing (price about $47).

General Motors already manufactures most types of motor vehicles: the Cadillac, Buick, Overland, Oldsmobile. Chevrolet, G. M. C. trucks. Taxicabs and motorbusses have only to be added.