The people's voice., 1957-12-06

Securities and Exchange Commission
and the Federal Trade Commission,
the only group of industrial compa-
nies showing larger net profits for
the second quarter of 1857 than for
the like 1856 quarter were those
whose assets totaled more than 81
billion each. All groups with smaller
assets showed a decline in profits
from the comparable 1856 quarter.
But the combined profits of the
industrial dinosaurs, after shey
had paid the taxes of which they
complain so bitterly because it
STILES their initiative, was $685.
100000 for the three months ended
June 80 last, the latest report
shows. This was gain of 3 per
cent over last years second quarter.
This compared with profits amount
ing to $868, 100000 for the manu-
featuring companies each with assets
between $3.50 million and 81 billion,
is'a drop of per cent from last year.
DOWN THEY GO
Profits for companies each with
assets between S10O million and $3.50
million declined per cent; profits
of those with assets between 81 mil
lion and S100 million fell per cent;
while profits of those with assets of
less than 81 million sank 10 per cent.
The really small companies, with
assets of less than S25O,OOO each
(included in last mentioned group
plummeted 29 per cent below last
years level. That is where the "hard''
money squeeze of the Administration
brought greatest suffering with fail
ures and bankruptcies multiplying like
the Asian influence.
Take all manufacturing industry as
a whole, however, and the gains of
the very big companies almost offset
the losses of their smaller rivals, MAX
ing the picture look not too bad.
Profits of all manufacturing compa-
nies showed an overall decline of
only 4 per cent.
NO MIRRORS USED
This illusion of general high pros
D6IILN 10 HOI QOllS Will IL >
accomplished with high margins of |
profit for the biggest companies, al
though there is progressive down
grading for each group with smaller
individual assets.
Take the two top groups, for in
with individual assets
of 81 billion or more each, and those
with assets of between $3.50 million
and 81 billion each.
Let's look at the second-from-the-
top group first. In the second quarter
of 1856 this group reported total
sales of $13,698 million, and in the
second 1857 quarter sales of $15,-
Gil million-a gain of IA per cent.
Then look at the top group, includ-
ing those with assets of 81 billion or
more each. Their net sales in the
second quarter OF 1856 were S14,083
million, and in the second quarter of
his year $15,353 million. This was
/ gain of only IL per cent. Sales by Il
each group in the second quarter
we're very nearly the same.
Yet the net profits of the top group
we're 52.8 per cent greater than those
# the group just below them.
The secret of this difference lies
in the fact that profits of the billion
dollar boys amounted to 8.6 per
cent of. total sales volume, while
the profits of the next-to-top group
ratio of profits to sales
of only Sc per cent. This profits
declines with amazing
as the size of company
assets is smaller. In the lowest
group on the industrial totem pole
the manufacturers with assets of
less than $25O,OOO each-combined
profits were only FL per cent of
sales volume. Moral: 1t pays to
have more than ST billion in assets.
JHO ARE THE BIG ONES?
In it's final report for last year,
le House Select Committee on Small
usiness, of which Wright Patman
O-Texas) is chairman, published
st of the SO largest industrial cor
)rations, with the sales volume, as