Evening star., 1922-12-30
1922 HAS PUT BUSINESS
BACK ON SOLID FOOTING
Biggest Factors of Year IL. Finance
Reuie,ped-Further Steady Gains As-
sured for at Least Sir Months.

place for business profits rather than
a developer Of sales volume.
The Three Great Strikes.
Three great strikes marked the
course Of business during 1922, the
textile strike. the coal strike and the
railway shopmen's strike. Great as
was the depressing influence or these
wage disputes on commerce and in
, dustry, their results were rot entirely
disa strous. More than once business
was poised for flights toward inf1a-
tion. 1t is possible that the labor
too rapid advance and resulted In a
steady and healthy improvement. free
from the danger Of acute relapse.
The coal strike. while 1t delayed
operations and lessened production
throughout the industrial world, had
Reserve stocks were depleted and
prices advanced somewhat. but few
plants were forced to draw their fires
entirely and production of coal jump
ed rapidly back to. or above. normal
when settlement was concluded. Dan
ger Of shortage for domestic uses has
not entirely passed, although this is
due more to lack OF transportation
| than shortage of production.
Shortage Of Railroad Equipment.
The rail strike was far moro severe
in its effects. Hardly an industry or
| business but suffered in some, way or
another from the shortage OF freight
cars and poorness OF motive power
equipment. This lack of equipment
was not due entirely to the strike.
There are fewer cars in bad repair
today than for a long period. but the
strike served to emphasize the fact
that equipment was totally inadequate
~
normal business and crop movement.
Conditions have improved, but still
are far from satisfactory. But rail-
roads have entered upon the greatest
equipment buying campaigns in their
history. orders 70. thousan nds OF cars
are being placed each week. and the
| carriers give evidence that they do
not again intend to be In Il position
where they must turn away revenue
freight
Water and truck transportation re-
ceived an impetus as result OF the
strike. which will be felt by the rail-
carriers for years.
Textile Mills Recovering.
The textile strike in New England
was the longest drawn out in the his
tory of the textile industry in Amer
lea. beginning in February, the last
runbles OF its discord' have just died
away. Both sides lost millions. but.
! ME tLOuSdUQS Oh SplliOleS were luAS,
stocks of cotton goods diminished to
point where the inevitable increase
in prices was the more readily accept
ed by the consuming public.
a marked Innovation following ne
gotiations during ard after the raj!
roads to deal each with its own men
! through the formation Of so-called
company unions and the announce
| ment by certain of the national rail-
| road unions that hereafter they
would negotiate with each road indi-
viduaIly.
The tariff undoubtedly was a potent
factor in many industries. Tho most
general reaction, however. was feel
| ing Of relief that the schedules finally
were settled and that business men
could make their plans accordingly.
Building Is Business Mainstay.
L. becomes increasingly evident
al the close OF the year tina; build
| ing construction was the pillar ~hicl,
the new glrders of other industries
were being forged and swung into
place. The total value OF new con
struction in 1922 has been well over
- 600, 100000. The scope OF opera
tons was 40 per cent greater than il,
for 1919, which had been the record
,, year up to this time.
No obstacle suficed to check these
tremendous operations which affected
almost as marked in the rural COM
| munities as in the cities. Prices for
| materials advanced decidedly during
the year. Wages jumped to unprece
dented heights. 1t was no unusual
thing during the past year for plas-
what with extra work and overtime,
to earn over 800 week. Common
labor in the building trades was paid
at rate unequa!ed except il the
most active days OF the war.
Housing Shortage still Acute.
The activity Of the operations sur
vived failure Of supplies, delays In de-
livery of materials and wage disputes.
and even the approach OF winter
Undoubtedly this was because the
housing shortage still is so acute
that nothing could halt the move
ment.
1t was due to the wise policy Of the
producers of building materials, how
ever, that progress was SO steadily
maintained. Lumber manufacturers.
cement makers and brick producers
guarded carefully against runaway
markets, and. as a result, prices, while
they advanced. did go gradually and
without causing panic or uneasiness.
4nUCu OL LILO OullullE AAdu6
was for business purposes. but the
mainstay Of the movement was the
desire Of American citizens for homes.
Never before in q similar period
have so! many dwellings been built,
and never beforee have they been SO
completely and attractively furnish
ed. This trend has been constantly
felt in the sales Of carpets, rugs, fur
niture and household goods which
have been maintained at a high mark
throughout the year. Ample capital
continues to be available aI/reason-
able rates to finance building opera
tions.
Companies Increase Diyidends.
II further evidence Of the prosper
ity is needed, 1t Is to be found plainly
in the dividend declarations of the
last month Of the year. Four out of
every five companies which made a
profit in 1921 reported an increased
profit in 1922. with few exceptions
companies which paid dividends in
1921 maintained or increased them in
the current year.
Hundreds Of companies declared ex-
ira dividends or increased their rates
specifically to the number which de-
clared stock dividends, but to those
which paid actual cash to their stock
holders.
Increases or capitalization and dis
tribution Of stock dividends and
bonuses were the outstanding fea-
lures Of the latter part Of 1929. Capt.
talization and subsequent stock dis
tributions to shareholders totaled far
above one billion dollars in book
value. What they amounted to In ac-
tual value still remains to be seen.
Without question. many companies
took this method and opportunity of
transforming profit surpluses ac-
cumulated in this and previous years
into working capital. Some adopted
this means Of making payments of
such profits to stockholders in a