Milford chronicle., 1936-12-18
ECONOMIC HIGHLIGHTS
Happenings That Affect Dinner Pals,
Dividend Cheeks and Tx Bills Of
Every individual. National and
international Problems Insepar.
able from Local Welfare.


ing of the next Congress more thai
a month away, business news is a
gain getting the biggest play" so fa
as domestic questions are concerned
And-aside from labor trouble, whicI
is a big fly in the ointment--the news
is good.
For a number of weeks now, prin.
cipal business development has been
the unparalleled distribution of fin
ancial largesse by corporations large
and small. Wage rates have been
raised-in some cases to the highest
levels on record. Bonuses have been
announced. Extra dividends have
been declared. And a number of
corporations whose stockholders
have gone dividendless for years are
welcoming the renewal of regular
payments. Each day sees news of
this kind, and more is expected for
TIE next few weeks.
The acid test for business recOv-
cry, however, is not dividends and
wages-artificial stimulants, such as
the surplus tax are greatly respon-
sible for these recent bOOsts-but
lies in the answer to this question:
What is industry's earning record?
In a recent issue, Business Week
supplies the answer.
This magazine has taken earnings
records for the first nine months of
1896 and compared them with the
same period last year-Which, il
should be remembered. was in itself
a good period in the light of the ex-
perience of 1882. 1888 and 1884. On /
this basis, nine leading aircraft |
makers made profits of $2.S35, 900 as !
against $504.O0O--a gain of 462 per |
cent. Three apparel manufacturers (
earned sl,S55.000 as against $1.04S,-
OOO-up a per cent. Automobile
profits rose "A per cent-$227 .676 900
as compared with $13I. 1873. 900.
Chemicals showed II per cent earn
ing improvement, and railway equip
ment 462 per cent-$l5,597, 900 as
against $2.777,0OO. Fourteen mer-
chandising concerns did better to
the tune of 1853 per cent, and 81 per
cent improvement was felt by 90
makers. Twenty-nine
food companies went ahead 21 per
cent. and had earnings of more than
$9l ,O0O,000 for the 1886 period. Steel
and iron showed a gain of 264 per
cent-SS5.l45.0O0 against $23.424O0O.
So it went all through the industrial
field. with the smallest margin of
betterment being four per cent-li-
quOr and confectionery industries
and the largest 1852 per cent-aircraft
and railway equipment. There We're
no losses. Two classificatiOns-
shipping and miscellaneous services
deficits with profits.
Total industrial earnings for 3Sl
were $97S.274,O00 as "a
sainst $6l2, 1863 900 in the same per-
od last year-a jump of 90 per cent.
In service industries there was also
Detterment. though in no case did I
It reach extraordinary percentages.
One-hundred-fOrty- Glass | rail {
'oads earned S42.00O.OOO where they /
lad sustained a deficit of $66 1900. 600 {
n three-quarters of 1885. Fifteen
ractiOn companies earned $lO.O3I,- {
100 as against $7.5S5.O0O-a gain of [
? per cent. Thirty-One power and I
light utilities went ahead per cent \
-$l47,944.O00 as compared with d
1876 All. 900 \
Grand total for all the businesses >
57l in number-shOwed earnings
$l,17S,249,O00 in the first nine
IOnths of this year as against $685.
$4,000 in the same period a year
go. Grand total percentage better =,
ent was thus II per cent. ii
AS Business Week also points out, a,
has been the jewel of -,
cOvery' is, il is highly signi-
ant that all major industries have -,
lprOVed, none have lost ground. In n,
eViOus periods since recovery start n,
!. the picture was always mixed m
th at least few industries show N
g declines to Offset the increases a,
output and earnings of other in Fl,
stries. AS we come to the end of
36. it is undeniable that every Il,
anch of American industry has ST
ide great strides. is
Vitally important was the Supreme nj
urts decision on the New York fe
insurance law case i'm
cause of its bearing on the similar or
rs of l6 other states, and on the III
deral social security program. be
in legal point brought forward by na
Orneys opposing the law was that All
taxes employers to benefit en- i'm
'yes, that it therefore was in ViO-
ion of the basic law of the land. fis
fendes of the law said that il was pc
lustry's duty to provide for work m
it might have to discharge, that on
re was no constitutional barrier To
the way. M
Nhe Supreme Court said the last
rd-in a highly unusual decision. ga
e court was divided four to four NJ
the question. and when that hap Wa
IS the judgment of the lower an
lFt is automatically confirmed, and
decision is read. The New York mr.,
' has therefore passed the ulti- Re
te test and is secure-as the low re,
court decision approved it. tbt
ABSENT Justice was Mr.. Stone, kept ha,
m the bench by illness. Justice ina
ne has favored unemployment in
ance laws in the past. 1t is there
e generally believed that Justice
berts Joined the liberal" branch +
the cOurt-eOnsisting of Justices ITO,
lndeis, Stone, CardozO and Chief 49,, 49,,
tice Hughes putting the IN slii
wing-Justices Van ,5a ,Sa
vanter, McReynOlds. Butler and w, HiO
rce-in the minority so far as Ial S
case was concerned. sha
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