Arizona sun., 1950-01-13

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officials. They participate in Dear
born Motors, a retail sales and
special investment organization
whose profits are divided up among
the boys. AS for the regular bonus
not investment programs-Gen-
eral Motors management, as re-
suit of the Winkleman versus Cen
eral Motors case in court, had to
put back $5,OO0,OO0 because of mis-
computed bonuses. All these Spe-
cial considerations, of course, ulti-
mately are reflected in the price
of the car. Last year about $500
General Motors management peo-
pie received $32, 2,571 900 in bonuses,
to about II per cent of
the net earnings of the corporation.
Now management has been COM
planning about the unwillingness
of people to invest in stocks and
The reason manage
ment likes to give is that taxes are
too high, that labor costs too much.
Well, it could well be that people
are not investing as they used to
because management is taking too
big a cut for itself out of the re-
turns before any benefits are ever
passed on to the investors.
Barium Steel Nugget
I have described the operations
of J. A. Sisto of New York and
Barium Steel Corporation. I told
how ]. A. Sisto lost his seat on
the New York Stock Exchange;
how for nine years he was denied
in the National Asso-
citation of Securities Dealers, but
finally got in last year; how Ba-
rum Steel was given a loan of
Sc, 100000 by Reconstruction FL
nance Corporation out of taxpayers
money.
In Cleveland and Detroit I look
ed up more plants of Barium Steel
Corporation. In Iron Age of Octo-
Der 9th I read how Barium, which
announced it did $51, 100000 worth
of business last year, staked its
future on efficient management
for which it was collecting $1,000
a month from most of its subsidi-
aries. In Cleveland where accord
ing to advertising spreads the cor
poration is supposed to own Geo
metric Stamping, Cioga Spring
Company, Perma-Jack and Porce-
lain Steels, Geometric Stamping
and Cioga Spring are operating
but cutback; Perma Jack and
Porcelain Steels were operating in
side Geometric Stamping.
Here in Detroit the Barium SUBJ
salaries are supposed to be De-
troit Steel Casting, Kermith Manu-
featuring Company, and Farm
Units Incorporated. Don't ask me
what happened to Farm Units, I
doubt very much that it ever was
more than a name on the door or
a brainstorm in the mind of some
half-baked inventor. But Detroit
Steel Castings in this city was a
reputable blue chip steel casting
firm that made money for most
of so years. It once employed as
many as 1000 workers, generally
had employment for 400. Today
it's stacks are cold, a sweeper and
a maintenance man inhabit the
place. Efficient management by
remote control from New York
has another of Barium Steel Cor
poration's so-called gold nuggets
run in the ground.
And look at the dirty deal the
more than 400 employees of De-
troit Castings got, some of them
at the plant as long as 80 years.
There is Kermith Manufacturing
Company, one of the old marine
engine manufacturers in the coun-
try. Death removed two of the
owners. Republic Industries bought
out the others and Barium Steel
bought out Republic in deal
which enabled Barium to issue
650,000 shares of stock. When Ba-
rum took over in February, 1916,
Kermith employed more than $50
people. The new management
quickly got into labor trouble al
though the place had been organ
lied since 1887. Today no more
than 40 workers are left and you
should get a glimpse of the outfits
credit rating around here.
More Gold Nuggets
In Detroit learned how Barium
bought the physical assets of
George King and Company of
Sheffield, Alabama. That company