Milford chronicle., 1957-05-17
RIISINESS PROFITS

The Securities and Exchange Commits
sion reported recently that sales and earn
ings of corporations in the United States il
the last quarter of 1856 set a new record.
This may be surprising to some who
have heard so much about the profit squeeze
1t is true that there is something of a profit
squeeze, but judging from figures released
by the Securities and Exchange Commits
sion, this squeeze is relatively light-handed
The SEC estimates total sales in the final
quarter of 1856 at $81, ,100000,000. These
sales represent a gain of nine per cent over
the third quarter figure for 1856.
Perhaps the key statistics released by
the SEC was that concerned with the profit
Margin as compared to that realized in 1855
u. S. corporations realized a profit margin
of 3 per cent in 1856, which was not quite
as high as that realized in 1865, when the
profit margin was 5.4 per cent.
However, the difference was only. one
tenth of one per cent, and while this is not
incOnsiderable one should note the rise in
total sales and profits in 1956-which gives
an idea of the rather healthy situation which
exists for u S. corporations and which ex-
listed in the last quarter of 1856.
Sales rose for these corporations to $307,-
100000 900 in 1856. Compare this with
total sales of $278, 400, 100000 in 1866, one
will see that sales were up greatly in 1856.
Moreover, net profits in 1856, for u. S.
corporations, were $16,200000, 600 as com
pared to SIS, 1O0, 100000 in 1866. So net
profits increased in actual money by 81 ,1O0,-
O0O,0OO
We would be inclined to guess that if the
more than One-tenth of one per cent drop in
profit margin experienced in the automo-
bile industry in 1855 were eliminated from
the total picture, one would get a rather
healthy picture Of u S. corporations for
1856 So, the profit squeeze, judged from
these latest figures, must be considered
relatively mild one.
HEADS I WIN, TAILS YOU LOSE
To illustrate the extremes to which advo.
Gates of socialized industry will go to destroy
private enterprise, an act referred to the
Committee on Public Utilities of the Wash
ingtOn State legislature is an eye-opener.
The bill did not get out of committee but
the fact that such a measure was even pre-
sented to prohibit utilities from defending
themselves, is warning that proponents of
such measures could by the same token seek
legislation to prohibit citizens from talking
against the party in power. In Russia you
don't talk against the party.
The following paragraph from the bill,
which is just sample of others, shows its
attempt to limit freedom of speech and de-
strOy competition. 1t said
Sec. 3. Any privately owned electrical
utility Which makes, issues, or causes any
employee or employees of such utility to make
or issue statements or advertising stating or
implying that the services and rate structure
of such utility are superior to that of public
utility district or electrical cooperative OF
that public utility district or electrical co
operative does not pay taxes in a compara-
lively equivalent amount or degree to such
utility or its otherwise an improper body to
supply or distribute electrical power to the
public, shall be deemed to be engaging in an
unfair, illegal, or oppressive practice . y
Would the managements of publicly own.
ed industries accept like legislation limiting
their right to criticize free enterprise in the
power field?
We should be more wary than ever before
of public officials who would restrict the
rights of private citizens in favor of bu-
reaucratic dictation.
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SPLUTTERS OF DISUNITY