Societe Anonyme André Citroën was heavy on the Paris Bourse one day last week. In a fortnight the stock had tobogganed from 500 francs per share to 260. Andre Citroen, the bald, dapper little "Ford of France," was in swift financial waters. From one excited broker to another sped reports of a general creditors' meeting at the Bank of France. Finally the Agence Economique et Financiére, the Dow, Jones & Co. of Paris, rumbled authoritatively:
''It is learned that this great manufacturing concern, which does honor to French industry, has obtained all the financial backing necessary for operating. At no time has it ceased to be a good commercial proposition. With this financial aid Citroen will undergo reorganization, placing it in charge of more rational direction with the support and control of qualified experts."
The Ford of France was by no means out, but no longer would he run his two billion-franc company with the absolutism which, along with mass production methods, he borrowed from his idol, the Ford of Dearborn. Andre Citroën has what Henry Ford mortally hates & fears —bankers.
M. Citroën's bankers used to be the famed house of Lazard Freres. Early in Depression, which to France came late. Lazard Freres tried to curb its client's exuberance, urged him to retrench. M. Citroën's reply was to buy up what little stock he needed for absolute control, preparatory to riding out Depression in solitary splendor. Lazard made haste to dispose of its minority interest.
Sharply Citroën's annual output of 120.000 automobiles in 1929 dropped to 58,000 in (the fiscal year) 1932. First hint of trouble came that year when the French Government threatened legal action to force M. Citroën to hand over the social insurance premiums he had collected from his 25,000 employes. Last spring a 10% wage cut brought ugly rioting at the Citroën plant in Paris, a lock-out and in the end a several-weeks' shutdown. A completely redesigned Citroën for 1934 entailed heavy retooling expenses and Jean Frenchman cocked a doubtful eyebrow at the new low-priced models. By last week Andre Citroën was desperate for cash. As the price of aid a group including the Bank of France and Credit Lyonnais lifted the sceptre from M. Citroën's well-manicured hands.
Henceforth André Citroën will confine his automotive genius to production, leaving policies to his financial betters. Meantime an army of auditors swarmed over the Citroën ledgers. In Le Soir a realistic financial observer remarked: "It is impossible now to get any exact idea of the company's condition. ... In prosperous days, accounts meant little because increased demand and prices covered everything."