The Bridgeport evening farmer., 1916-05-01
(Henry Clews)


 States Steel Corporations net earn ings during the last quarter were re- ported at about $60, 100000, or five times what they were year ago. Si- 1nilar results are being reported by other concerns in this industry, al- though it must be remembered that comparisons are made with a period of depression Copper mining com panies are making extraordinary pro- fits, and their combined output for this year will considerably exceed D. 600, ,0O0, 900 pounds, which at current average prices would approximate considerably over $5O0,O00. 900 in val of product, compared with $780, 100000 last year. Moreover the en- tire output for 1916 is said to have been sold to the Allies, who seem to have secured all the surplus copper in the country. When the war is over there will be a tremendous vacuum in Germany which this country will be called upon to fill. The oil com panies are also securing their full share of present unprecedented activ- ity. Since January 1, the Standard Oil Companies have distributed about $50, 100000 in stock dividends, and many of the coppanies have accumu- lated surpluses almost equal to their capital stock. A number of the chem ical companies, especially those mak- ing elements for explosives, are nav ing similar experiences, showing pro-
 
 Some of the textile concerns having war contracts are also enjoying unus- iual prosperity. As for the intuition companies, their experiences are too familiar to call for reiteration, further than the fact that orders for muni- 1 tions from the Allies are still coming forward more freely than at one time l anticipated.
 Such bulging profits, pleasing as they may be, are not altogether satis- l aof0 1eU <T | by high prices and inflationary condi- l tions. Beyond question they create a | species of dangerous intoxication in | business affairs The whole indus | trial fabric, while running at top | speed, is put more or less out of gear Costly changes and improvements are being made that may be suddenly | wiped out of existence when peace comes. Commissions are many and heavy Extravagance is inevitable, and careless business methods take the place of economies formerly en-1 forced1by necessity Opportunities for graft and greed are innumerable, and the morale of many establishments is seriously impaired or destroyed. A E hazardous situation is being created which, though recognized, is often lightly regarded because of the inn mense profits in immediate view E Foresight may effectuaIly prevent the disasters which would ordinarily fo1-l low such excesses, but the effect is demoralizing alike to capital and la bor The latter naturally expects a share in these extraordinary results, and is securing it without much diff culty Many concerns are disposed to deal Hberal1y with their help, and nu- merous wage advances have already occurred in indtstries making these unparalleled profits. It woulds prob ably have been better for all concern-l ed if instead of higher wages, bonus es had been given the men, with the assurance that they would be contin- E ued as long as present extraordinary conditions last When war contracts cease and conditions settle down to normaE-if not to a period of positive reacdon-the wage question may be- come acute; for the men, not clearly understanding the situation, will be unwilling to submit to return to for mer wages, regardless of whether manufacturers will be able to con- tinue on the present basis Or not Some better and more flexible method of adjusting wage differences should be found than strikes. Capital needs more fafr-minded and more liberal leadership. Labor needs more inteli- gent and less prejudiced leadership Each needs to consider the others point of view. Blind selfishness should give place to intelligent seIf-interest, and the spirit of fair play should anil mate the leaders of both interests. The warlike spirit which prevails between capital and>labpr is simply absurd and injurious to both. Capital and labor are unavoidabIy partners, one of which assumes the risk and manage nnent while the other gives manual skill and labor. For both sidesA har- 1nony 1sS better than friction, and the share allotted to each put of the so- ciaE product should be the outcome of open-minded negotiation; not brute force or brigandage on either side The issues. between the railroads and labor must shortly be met
 Dividends and interest payments for May are estimated at about $137, OOO or more than $5,000,00O in ex-l cess of last year The increase is smaller than expected in view of the large profits made by. many industri- als. The reasons why distributions have not been heavier are several LaTge sums have been. charged off for depreciation. Still larger sums have been taken out of earnings and put into plant, reappearing in the form of surplus and stock dividends. Some. companies are wisely strengthening themselves against future reaction by building up good reserves to maintain diyidendsy and all concerns are feeling the widespread rise in the cost of do- ing business, as we'll as the numerous concessions to labor, which will soon cut down dividends to more normal proportions.
 War continues the ruling factor in financial affa1rsj our relaIlonS Wlth Germany still being the first issue There is some hope of a satisfactory adjustment of the submarine question owing to the more conciliatory spirit manifested by Germany during the last few days. Later rumors have been distinctly favorable. It would be pre- mature however, to be overcon11dentl in this respect. What the outcome will be cannot possibly be foretold, gut one fact has recently been dis closed, that neither the people of Ger many nor the the people of the United States wish for war. Symptoms strong enough on the surface have already