Evening star., 1927-04-08
MEN AND MONEY
By II. S. Rukeyser.
(CopyriEht. Ie27.l

In the present business period
there is seemingly no relation between
the profit possibilities of an industry
and its essential character.
AS matter of fact, with the dis
appearance of wartime standards,
many less essential, luxury industries
have thrived while certain essential
trades such as clothing, textiles and
shoes have languished. With the
real purchase power of the average
family increasing at the rate Of per
cent a year since 1921, the people
have been growing above the homeler
standards of the past.
Automobiles. radios. electrical ap-
pliances, sports, heatricais, movies,
tourism-these are among the con
spicuous services and commodities
which have benefited from the ten
dency toward spending on a higher
scale.
1t has been estimated that the
American people win spend $200,000,
600 this year in admission fees for
base ball, foot ball, horse racing, box
ing and other sports. College foot ball
last year brought in $50 900 ,000, and
organized base ball this season, it is
believed, will gross $4,000 900.
Customer Ownership in Sports.
Thus far the idea of customer
ownership has not yet been introduced
into the realm of financing sports. In
the amusement field, however, the
largest motion picture companies. the
vaudeville circuits, and one chain of
legitimate theaters have listed their
stocks on the exchanges, SO that all
who laugh may buy. Besides, bond
at.ft tor fac
have been widely distributed among
investors. Conservatives lenders are
disincliued to buy mortgages on
theaters in belief that in the event Of
failure the building cannot be CON
verted to ether uses. TO offset this
objection, builders of new theaters--
particularly of the motion picture and
vaudeville variety 49, have included
stores and offices in the new buildings
to assure an income from diversified
sources.
The American people spend billions
in non-essentials, gratifying their
whims and desires, and if they get
fun in buying expensive perfumes,
powders and admissions to a variety
of performances. who is there that
has right to object?
Giant enterprises, showing enor-
nous net profits. have, been built on
the frail foundation of public fancy.
Foreign Competition.
As a result of the new hardihood of
American business, less talk of the
dangers of foreign competition are
heard than in the past
The new tendency is for foreigners
to wonder how they can meet the
American competition. Accordingly,
this country has been visited in recent
months by large delegations of foreign
manufacturers and engineers, who
came to study the secrets of American
success, particularly the American
technique of mass production Ger
man interests have been especially
active in this direction, and an Ameri.
canization of Old World productive
methods will to some extent result.
Until Europeans can raise the stand
ard of living in their own countries,
however, they win be handicapped. for
American mass production Is made
feasible by mass consumption in the
home market
Edward A. Filene, Boston merchant.
who recently studied European condi-
tions at first hand, urging mass pro-
du0ion In Europe, declares the Old
World can recover if 1t learns scien.
tif1c manufacturing and distribution.
We see Europe" said Mr.. Filene,
''its several hundred million of people
comprising great potential markets
and capable OF producing in abundance,
suffering helplessly from a chronic
state of underconsumption. This is
the underlying economic malady which
needs to be correctly diagnosed and
treated il Europe is to recover and our
own prosperity be preserved. Unless
can be effected and the
ability of the masses to earn a good