Arizona sun., 1949-12-23

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we pay for a good part of Of
It has often been said that
through the purchase of stocks and
bonds the American public owns
the American corporations. Well,
last year not more than 100000
Americans plus a few foreigners
owned stocks. Less than 100000
stockholders drew half the divid-
ends received by individuals. In
the average corporation the major
ity of voting power is concentrated
in the hands of not much more
than 1 per cent of the stockholders.
Thus, from the standpoint of in
veStmentS there is growing con-
centration of economic power in
the hands of comparatively few peo-
pie. What Franklin Delano Roose-
welt said in 1888 is still true, and I
quote: "This concentration is Seri-
ously impairing the economic effec-
tiveness of private enterprise as
way of providing employment for
labor and capital and as way of
assuring a more equitable diStribu-
ton of income and earnings among
the people Of the nation as a
whole"
This concentration has been pro-
ducing changes in the complexion
of management. It tends to move
out of the hands of those who make
things into the hands of those who
manipulate them. Take the auto
mobile industry for example.
Nearly 1,50O makes of automobiles
have been started; today only about
20 survives companies make IL
of them. Whether it is soup or
cereal, nuts or Steel-the tendency
is in the same direction. A few
manipulate the interests of the
many. Two per cent of manufac-
turing firms account for two-thirds
of the total manufacturing jobs
and that management is costing us
a pretty penny not only in the
goods we buy but also in the broad
er economic costs of "boom and
bust" brought on by it's policies.
HIGH RICES AND LABOR
In recent years you have heard
repeatedly: High prices, why if
the cost of labor wasn't so high
prices could be lowered" Have
you ever asked what would happen
if the cost of management were
lowered? Have you ever analyZed
what it is costing today? We think
of management in terms of a board
chairman'S, presidents, or direct
or'S salary and if he does get over
100000, income tax will take a
good chunk of it. But in quite
number of our big corporations
today and in some smaller ones
management doesn't only get
salaries, it gets a paid up pension
for which the workers are clam
oring-and in addition, a pension
plan to which management can also
contribute. Management can par
ticipate in profit-sharing, cash
bonuses, stock bonuses, and stock
options. True, some corporations
have profit-sharing plans for en-
ployees. A few Like Sears Roebuck
give stock bonuses to workers as
we'll as employers so that in time
there could be cooperative owner
ship. But take an industrial giant
like General Motors. In 1948, 81
directors and officers of General
Motors not only received $3,048,000
in salaries, they received even
more-$5, ,445, 900 in cash bonuses,
and that averages about $95, 900.
In addition, while those 81 paid
in $4,000, or slightly more than
l h per cent of their total cash in
comes, the company paid $275, 1000
for them into the retirement fund.
In addition, these same people re-
ceived 22,930 shares of stock as
bonuses. The bonuses which some
of the tobacco and film magnates
get are even higher and more
closely confined to top officers.
Sooner or later this is reflected in
price tags and cost aS nnuch aS the