The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-06-16
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Textile Industry Finds It's Priced
Itself Into Buying Slump Depression

spite these inventory losses the cot
ton textile industry showed a gain
of six per cent in 1948 profits after
taxes over the record-shattering
figure for 1947.
The union report said that as a
result Of the phenomenal profits
of the past three years the indus
try has built up its financial re-
sources to meet any contingency"
1t added that the textile workers
and consumers have contributed
to the tremendous wealth accumu-
lated by the owners of the textile
industry during this period"
1t would be we'll for workers and
consumers to remember this during
the coming years when the indus
try may talk loudly about declin-
ing profits and plead poverty when
ever there is a proposal for higher
wages or lower prices. The figures
show that the industry could have
sold its goods during 1948 for ten
per cent less and still made profits
of three or four times as much as
in 1899. Or it could have increased
wages so per cent and made still
more.
Hidden From Public
Many of these profits have been
concealed from the public. The
union report showed that during
the past few years the financial re-
ports issued to the public "have
been marked by a prOliferation of
new reserve accounts and sharp
increase in the amounts set aside
in more venerable types of profit"
which was contrary to accepted
accounting practice" and was "de-
signed to minimize the reported net
profit"
In spite of the rapid growth of
net worth out of past profits-a
growth which totalled almost a
billion dollars in 1948 alOne-the
has managed to almost
maintain the high ratio of profits !,
to net worth enjoyed in 1947. Pro-
fits before taxes in 1948 were 37.2
Der cent of stockholders inflated
equity-meaning that even this
swollen book value would be doubl-
ed every three years.
""The key to this amazing grow
tn in the industry's profits and fin
ancial resources is to be found in
the high profit margins which the
maintained in set
ting prices, the union report said.
Textile sellers exploited the fabric
shortage to the hilt, taking an
average of Is cents in profits for
every dollar of sales in 1947 and
l948. The minor margin reduction
effected in 194S was hardly ade-
1uate to enable consumers to re-
.eive a decent share in the benefits
If chronological progress, high
evels of production, and integra-
ion of manufacturing and distri-
outing organizations. The failure
If the industry to pass on these
savings produced these high pro-
it's"
During 1948 the owners of the
ndustry-meaning the stockhold-
profits of $1,740 for
ZACH wage Garner in the industry
compared with S163 in 1889. Pro-
it's per manhour of employment
llso rose to a new peak of 1856
ents as compared with $.O85 in
939. Profits per manhour rose ten
old during the 10 year period as
ompared with an increase in
wages of two and a half times. The
otal wage bill rose by 200 per
ent during the period, while pro-
It's scared 1,100 per cent.
Profits Up, Wages Down
This growth in profits is mir
ored by the fact that in 194S pro-
is were 77.2 for every dollar of
,ages, as compared with 1914 cents
4 1889. The proportion of the sales
ollar made up in wages reached a
ew low of 19.1 per cent in 194S
S compared with 23.8 per cent in
939.
AS large as these profits were,
,s union report noted, some of the