San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1926-04-11
Mo TORS cost
a BILLIONS
IN YEAR
Biggest Earnings of 1925
Made By Auto
Manufacturers.

NEW YORK. April 10.-Nincty
four American corporations made re
ported or estimated earnings Of SO,
100000 or more during 1925 and the
five heaviest earnors ranged from
S90,000,O00 TO well over S10OrOOO,OOO
according to an article on The Bic
Money Makers of America by Reu'
ben A. Lewis Jr, in the current IS
sue of the American Bankers Asso'
citation Journal.
The leaders are given as the Amer
lean Telephone and Telegraph Com
pany with s1O7OOO,OOO; General Mo
tors Corporation, s1O6,O0o,0OO; Ford
Motor Company, whose profits are
not published, but estimates Of SlOO,'
100000 to s115,OOO,OOC for 1924 sug-
gest its position for 1925: the United
States Steel Corporation, '9O,OOO,OOO,
and Standard Oil of New jersey,
whose figures are not yet given bu.
which is ranked with the leaders.
WIDE DIFFERENCE.
The article says:
There is a wide gap between the
big five and the corporations that fol-
low in their wake. n examining the
capital structures, it is apparent thai
the difference in the amount Of the
earnings Of the leaders and the lesser
is roughly in proportion
to the amount Of capital employed
aThere has never been a time when
there were so many corporate earners
of the United States in the ten-mii'
u-a-year-or-better class. Since 1871,
memorable for red ink, the ranks have
grown larger. That year, there were
~. in 1922 81, 60 the next year an!
T5 in 1924. With business moving
along more briskly during 1925 the
earnings of representative corpora
tons were nearly a third larger than
for the preceding year. There were
"a corporations that earned SlO,OOO,'
900 or more.
40 PER CENT LOSE.
at is a struggle for & corporation
10 bring its earnings above $4,000,
100. Federal statistics show that, TAX
ing all corporate enterprises, large
and small. into consideration. not
more than two-thirds have made any
thing in the best years. On the aver
lge. 60 per cent report a net profit
md 40 per cent have lost money. y
new high record was set during 49,
when il is indicated that ~ cleared
he S20,O000OO barrier as compared
with 20 for 1924 and 1923: 10 IN
1922 and II in 1921. Twenty corpora
ions had such splendid business dur
ny 1925 that they climbed mp into
he $4,000. 000-Or- class. The
,roup was about evenly divided be
ween those that came back and those
hat made their debut in the ranks
{ major affluence.
ESTIMATE SPENDINGS.
~While bank earnings turned up
yard last year, it was not observed !
hat any bank was in the company OF
be newcomers.
at should not be concluded that the |
inancial group stands alone in not |
more than one or two places |
} this circle. There was not a single |
prporation in ten other major indus
rial groups that enjoyed net earning
T as much as S1O,OOO.OOO. In "a
ut of - major classificatiOns, how
yer, there is at least one representa-
We.
1T was recently estimated that the
'nited States is spending fourteen bill
on dollars annually on automobiles.
/ is not surprising to find the for
ines Of those industries that have q
lajor part in making automobiles, the
rcessories and the things that make
le wheels turn around are on the
Sc, Nine automobile manufacturers
ad earnings Of more than $4,000,
90. The rubber companies had
amer year, even if crude rubber d.J
0 up like a skyFOcket. Fifteen o.
IOre oil companies made SlO.OOO,OOJ |
+ more while a number If the lead
x industrial corporations attributed
substantial part Of their earning 10
le automotivc development. One max.
+ Of automobile bodies amassed So
10000.
"Many Of the corporations within
be scope Of thi, story are known u
be best managed firms in the cou7-
y. This capacity and acumcn natu-
ally is reflected in the rate Of their
arnings although these are controlled
! q large measure by the purchasing
over Of the buying public
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