The Birmingham age-herald., 1924-06-05

An excellent il-
 lustration on how
 EEIS1nsS things will work out is afforded by the announcement from the middle west that the 50-year old Moline Flow company is to give up the manufacture of heavy agricultural machinery and implements and confne itself to making small implements until purchaser can be found for the shriv- eled-up concern.
 Agricultural xpansion-over-expan7 sion-during the war fostered inordi- nate building of plants by powerful in- terests to furnish unprecedented quanti- ties of farm implements and machinery. When the collapse came, demand drop ped seriously. Even the strongest makers of farm equipment suffered se- yerely. Their profits fell, their divi- dends were cut, their securities de- clined drastically.
 But the strongest companies have been able to survive. The Moline Flow company, though for years a tower of strength, has not been able to with stand the strain.
 A chemist came to see me this week. !. His life story throws light on how the 4uW .OI ecOnOmlCS WOrkS.
 After a thorough training in Ger many, he found modest job here, won reasonable promotion, moved to larger concern, and was advanced to a po- sition paying about $400 a month. When the cry went up in this country that domestic dyes must be produced in large volume, following the stoppage of imports from Germany, he and two as- sociates launched forth on the check cred sea of business. Their little con- cern prospered for a time. But when the test came when competition reassert- ed itself, when production overlook consumption, their fral structure caved in.
 Incidentally, as he could not find an opening as a, chemist, he now learned how to lay tiles and is ready to start earning SIP day at that job.
 There you will have another instance of how the fttest survive and the weak CT go to the wall.
 Not all of the automobile companies that sprung into existence have been able to live. Not a few concerns suf- fered bankruptcy. Some went out of existence entirely. Others are still struggling to keep their heads above water. But you are going to see the elimination of more automobile com panies the next time the industry runs into a period of depression. ,rsa MAny coal mines which were run at e a profit when prices were skyrocketing have since closed down.
 Various copper companies could make money and did make money when war time prices ruled but these companies can't meet their expense now that cop per is selling below 13 cents a pound.
 For months you have read how one New England cotton mill after another has Aither shut down. or gone on short time. And you certainly. have not read of any new chains of cotton mills be- ing established in New England.
 Look how many publications have gone out of existence.
 Again consider what has happened in shipping. Excessive building of ships has been followed by the wither- ing up of company after company until only the strongest have been able to keep afloat. The banking world has witnessed the absorption of scores and scores, even hundreds, of weak insti- tutions by stronger ones. During the first five months of this year there have been over 5000 commercial fail ures in the United, States.
 There is nothing extraordinary in this.
 It is as simple as A B c to those who have studied the ways of business and of human nature.
 It means that whenever too many in- dividuals or too many. concerns enter a given field there occurs heavy mortality among those least capable of fighting for existence.
 It so happens that the great increase in wages and the sharp rise in materials and the cost of doing business have made it somewhat more difficult than usual for small, weak concerns to with stand competition. This rise in costs is likely to bring about far more elimi- nation and amAlgamations, even should general business move along reasonably satisfactorily.
 So, America's "over-production of pro ductiye facilities will bring about its own cure. It is doing so now. It will continue. to do so.
 Is there anything and in all this?
 Not at all. Does it not mean that opportunities are thus afforded those made of the right stuff to rise to the top?
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