The Washington times., 1928-03-09

AOA w. ASAACS'' MdHvS LID
that all employers lead hapl
The naked truth is that two in
every five manufacturing COM
panies have in recent years either
made no profits or have suffered
losses.
Also It is the stark truth
that bankruptcies are increasing,
50 difficult has it become in
many, not to say most lines, to
make reasonable profit.
Another thing. The number of
million-dollar to billion.dollar cor.
porations is increasing each year,
driving to the wall more and
more small concerns. And this
trend is certain to be more pro.
flounced during 1928 than ever
before.
Competition Harder
The fact is that the ordinary
man engaged in business on a
small or moderate scale Is find
ing his life less and less a bed Of
roses. Competition from larger
concerns steadily becomes more
aggressive, more killing.
On the other hand, It is indis-
putable that an increasing num-
Der Of employees are able to enjoy
higher standards Of living than
formerly and also 20 save money,
acquire their own homes, sub
scribe either for stock in their
employing company or other In
vestn1ents, spend more literally
for education Of their families,
etc.
Could the whole truth be ascer-
tanned, the strong probability is
that It would be found that a
larger percentage Of steadily en-
ployed workers, taking one grade
and one clasH with another. have
fewer financial worries and more
happiness than is the case among
those doing business on their own
account.
During 1927 Dun's records the
staggering total Of 2S,146 com.
nercia1 failures, against 21,713
in 1925; 21,214 in 1925; 20,615 In
1924 and 1918 In 1929.
That gives you some idea OF
how common very grave financial
difficulties are among bosses, those
owning their own business or be-
ing part owners Of a business.
Ends Not Meeting
Still more impressive are the
figures showing the number OF
concerns that have been unable
during recent years to make ends
meet.
A thoroughgoing analysis. by
the research staff of the National
Industrial Conference Board, OF
the income tax returns to the
Federal Government reveals that
the following percentages Of man.
ufacturing corporations reported
no net income In 1920. 81 pei
cent: in 1921, 81 per cent: in 1922,
II per cent: in 1928, 81 per cent
in 1924, II per cent; in 1926. 80
When the 1927 figures become
available, they are certain to dis
close q more unfavorable rather
than q more favorable compart-
son.
During the six years covered
the records show that Tor every
SO earned by successful concerns
no less than $32 was lost by un'
successful concerns.
President Magnus w. Alexander
Of the National Industrial Con
ference Board, states:
I'm the case of incorporation
AlopaaNAa khA fNAVaA alma $hA and
of 1925 has been downward and
the decline has been sharp. Com
parison Of the trends Of failures
and Incorporation in business in
recent years justifies the deduc
ton that competitive conditions
in business are becoming more
severe"
After remarking that, although
1925 was generally considered a
banner year. for business" Mr.
Alexander observe:
1.-THE boards analysis further
shows that manufacturing opera.
tons in 1925 not only operated on
a distinctly narrower profit mar
gin per dollar Of sales, than in
1928, the last previous good year,
but that the average net income of
$3.50 per cent Of them-that is, all
those with less than $4,000, 900 net
income in the year 1925-was
nearly IL per cent smaller than in
1923.
while in 1923. $6.07 out of
every 800 Of the aggregate re.
ceipts Of all manufacturing cor.
porations represented net profit.
in 1928 a considerably larger vol
ume Of goods was produced at a
profit Of only $685. out Of every
500 of receipts"
Verify, each heart knoweth only
its own bitterness.
copyright, 1928. by B. c. Forbes)