Evening star., 1937-10-03
MISUNDERSTANDING
Business
BY FREDERIC J. HASKIN.


itary honor and intent only on making
money, and England has rallied at the
United States for setting up the AL
mighty Dollar as it's god A careful sur
vey of the world doubtless would show
that the peoples not more or less intent
on making money would be very few
Eskimos and Congo Pygmies and, among
the more civilized, the Arabs. But even
among these non-materialistic peoples it
would be discovered that there is some
sort of system of garnering.
The Russian Soviet Union started out
on the theory that profit-making was
subversive to society as a whole and
must be done away with. The commu-
nistic scheme was put in full force when
the Union first was set up, but almost
from its very first year the weakening
process set in. Today, in Soviet Russia,
there is such thing as profit, and it is
felt by many observers, the trend will
continue
All this is to throw into high lighted
position the fact that the United States
almost certainly has the largest non
profit-making business in the world This
is no sly reference to the Government
nor to the many private businesses
which, for quite period of recent years,
paid no dividends. The reference is di-
rectly to an enormous business group
which carries on extensive activities
without intention or desire to make
profit.
For the first time, the Bureau of the
Census has taken census of such enter
prises, covering their operations for 1885.
t71r o1n
establishments in the country with 323.-
767 employees out not to make money
The business is so big that the pay roll
OF the workers amounted to S404 ,312 900.
There are tricks in this set-up, as one
might suspect. In the first place, IT is
obvious that great deal of money is
received through the activities of these
businesses in the form of wages and
salaries, but the matter goes much be-
yond that consideration. There are 1892
trade and professional associations in
the general classification. They have no
intent to show profits on their opera
tions, but the profits they achieve for
others are beyond all calculations.
1t can be cited that few years ago
the United States Government thought
that the Hardwood Lumber Manufac-
turers' Association was such an ex-
tremely useful club for it's members that
it proceeded. under the antitrust laws.
against the organization and won its
case in the Supreme Court. While the
association itself made no profit. but was
drag on its members who paid dues, it
afforded. 1t was asserted in the case, an
opportunity for the exchange of prices
among members. and this might we'll
have resulted in the gain of millions in
profits.
In the same general class are the
chambers of commerce and boards of
trade which show no profit whs/ever.
and also there are citizens associations
and similar civic organizations War
veterans organizations are classed as
non-proht- making and, per Sc they are
not. Yet it is somewhat doubtful whether
the veterans bonus acts would have
gone through Congress. one after an
other, had it not been for their ex-
lstence and. with reference merely to
the last dividend, $4,000 0000 900 is
fairly substantial profit. incidentally, it
probably is not realized that there are
no less than 473 war veterans organiza-
tons in the United States.
Fraternal organizations constitute an
other group, and it would seem that
these should be classified as mutual
rather than -profit-making. as some
accumulate huge treasures and nav
benefits to members. Then there are the
labor unions. There, again, a query
about classification arises When a labor
union obtains, through strike or nego-
tiation. large increases in wages for its
members. the element of profit assuredly
Is present. To be sure, such organiza-
tions are mutual. but a union. as an
entity, can carry on activities which
bring in profits. The Brotherhood of
Locomotive Engineers, for example. is
in the banking business and profits
thereby.
There are the many clubs of the coun-
try to be considered. The Census Bureau
lists l,407 golf and country clubs with
1892 employees and 3,672 other clubs
with 33,071 employees. The pay roll of
these clubs amounts to $4,000 900 a year.
but no profit is declared by the clubs
themselves. Nevertheless. it is far from
being secret that some of the very big
gest of big business deals are negotiated
at clubs. Indeed, banks, brokerage
houses and other concerns have firm
partners whose sole duties consist In
making contacts at exclusive clubs.
One OF the most famous and vet least
known of clubs-if such a paradox NAV
be used-is the Jekyll Island Club. 1t
is famous because so many people know
OF its existence and so little known be-
cause its secrets, even the secrets of
It's membership are so closely guarded.
The club owns Jekyll Island, off the
georgia coast, and none but members
and guests may land on that island.
1t is said that no man is eligible for
membership unless he is worth 81 900 900.
That club unquestionably is classified as
-proflt-making concern. Yet it is
probable that the control of a quarter
OF the movable wealth of the United
States often is represented by the men
gathered there. The deals that are
talked over. the projects broached un-
questionably involve profits of hundreds
OF millions. Doubtless, too. heavy losses
are involved. But that business is not
counted as club business. This richest
OF gathering places is classified as non
prof1t-making.
Welfare and relief organizations are
other enterprises which are sorted in the
non-profit group. Also Y. NJ c. AS.
Y. w. c. AS. Boy and Girl Scouts. Bows
and Girls Clubs and similar organiza-
tions are listed among the non-proft
makers, and there can scarcely be any