Evening star., 1922-12-06
MARGIN OF PROFIT:
| GROWING STEADILY
Volume of Business in Count
less Plants Also Adding
to Prosperity.
BY J. c. ROYLE.

Specfa! nispatrl, 70 The Star
NEW YORK, December 6.-The diff
ference between doing business and
doing business at a profit measures
exactly the progress of business be-
tween this year and last. Up to late
fall days the improvement could be
counted in direct ratio to volume OF
production. Merchants made more
money because they sold more goods;
jobbers and wholesalers made more
money because they distributed morc
goods and manufacturers made more
money because they made more goods
and consequently made them cheaper
Now. however. the margin Of prof
IL is widening. This factor is join
ing forces with business volume l.:
bringing prosperity to the merchan-
diser. These profits give every indi-
cation of increasing rather than
growing less. Prices are rising.
gradually and steadily. Reports from
all sections of the country give basis
for the belief that this trend Will
continue at least well into the new
year. Costs are rising also. but the
margin Of profit. aids-l by the tre-
mendous increase In the volume of
4
ating expenses and is insuring greater
and greater returns
Capacity Production.
Capacity production is being reached
in hundreds of different factories.
Many plants which have been held
back by inadequate fuel supplies and
faulty transportation now are rum
ming at top speed.
The great basic Industries have bee:
the first to respond to the bet;erment
of manufae turing conditions. The Inn
petus given by forced draft operation
in the steel mills and cotton and wool
en- mills has taken effect on the smaller
factories making other lines. Unified
orders are mounting in nearly every
line. although output is at rate which
would have been ord-breaking be-
fore 1874.
Not all business men are yet ready
to subscribe publicly to these conclu-
sions. but while il is sometimes safe
TO discount what business man Says.
it never is safe to discount what he
does. This is what he has done: In
vestiEations concluded today embrac-
ing over hundred and fifty companies
ir two-score different Industries in all
sections OF the country, show that for
every company which has reported
decrease in earnings as compared with
1921 there are four which show an in
crease.
Many Gains In EaFntnE0.
For every company which reportci-
an operating deficit last year there
were ten which reported increase
incomes this year. Practically T."
companies which had been on a divi-
dend basis were forced to suspend
or lower dividends. whereas more
than 20 per cent increased their divl-
dend rates or declared extra div
dends. while about per cent. whic'.
had suspended dividends preyiousiy.
have resumed their payment.
Tae inventory period is approach
ing and the betterment of prices also
Will mean an increase in inventory
values. But. having just finished the
painful process of writing off high
price Inventories. most business men
will be extremely careful OF the
weight they place on the crutch OF in
ventory estimates.
Volume of business is the plug b.
which wise investors now are testing
the stock dividend melons which,
have become SO plentiful in the last
three months. Some of these melons
are ripe and represent fine profits in
this and previous years. but some
undoubtedly are being cut more for
exhibition purposes than for actual
consumption.
The announcement OF plans by
which the Jones & Laughlin Steel
Company will increase its capital
! from $30.oG0,0o0 to $l2O.00e,0oo indt-
Gates the confidence of the steel in
| dustry in continued activity.