Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-12
BY HARDEN COLFAX.

Competition in American business
and industry has reached stage
where a new era may be said TO be
at hand. With commodity prices stead
lily marking a downward trend, re-
sistance against wage reductions con-
tinuing, and unusual methods OF dis
tribution being tried. old methods of
doing business are being subjected to
a severe test.
Studies of available statistics by
various agencies of the 1ederal Gov
eminent point to interesting conclu-
sions. Current reports by the Federal.
Reserve Board. the Department of
Commerce. and the Department or
Labor indicate that the consumer is
approaching his heyday and that those
who would serve him must be alert to
the changing current of business at
fairs.
Analysis by the Federal Reserve
Board shows that at the end of
March commodity prices were within
per cent of the low postwar level
reached in 1922, applying to all groups
and directly affecting, individually,
hree-fourths of the 400 articles for
which the Department Of Labor main
tains an index. At the same time, the
board showed industrial activity in
the first quarter of 1927 to be even
greater than that which prevailed in
the good year 1926.
Shows Increased Efficiency.
The Bureau of Labor Statistics has
completed a study of the census Of
manufactures taken by the Depart
ment Of Commerce for 1925 which il
illustrates the increased efficiency of
manufacturing industries.
Comparable figures for the high
year, 1919 and for 1925 show that the
number of wage earners in manu-
featuring industries decreased 81 per
cent Ia that six-year period, despite an
increase in population estimated to
have been go per cent. Stating it
another way, the proportion Of wage
earners in manufacturing industries
per 1000 population decreased 1871
per cent between 1919 and 1925.
Demonstrating the increased eff
cheney and economies of manufacturers
is the fact that for 1925 the census re-
turns show a production of goods Is
per cent greater than in 1919. Con-
sidering the reduced number of wage
earners employed in manufacturing
industries in 1926, this increase in pro-
ductivity means, the bureau report
points out, that the quality Of goods
manufactured per wage Garner in
creased "a per cent in 1925 as COM
pared with the peak of the postwar
boom in 1919.
The conclusion that manufacturing
industries have increased their eff
cheney through mechanical improve
ments and better management Is in
evitable, yet 1t is only fair to assume
that there has been some measure
of increase in the efficiency of labor
itself
Steady Increase i'm Output.
The biennial table prepared by the
Bureau of Labor Statistics shows a
steady increase in output of goods per
worker in the manufacturing indus
tries of the United States since 1919.
1t may be considered, then, that the
era of greater efficiency began i'm.
mediately after the collapse of the
postwar boom in 1920.
But bringing conditions down to the
present, the increase in industrial ac-
tivity reflected by current reports and
the continued drift Of prices to low
level can mean nothing else than a
very intensified competition for the
consumers dollar. What will be the
outcome Is difficult to forecast. A
recent survey of an informal nature
indicated there has been no great
sacrifice of profits this year. Fewer
corporations reported deficits in their
| income tax returns filed with Uncle
Sam last year than in any year of the
| postwar period.
Profits of manufacture are not as
great as formerly. A study of the in
come tax returns shows that in the
last full business year for which com.
| plete statistics are available, 1924, the
average net profits in IL of the princi.
pal branches of manufacture were
| less than per cent on a. volume
of business which reached nearly
$54, 900 900 900.
speaking this week at Chicago, Ray