The people's voice., 1958-10-24

6IeCC liberal COuST0SS HeAC
These conclusions are further
strengthened when we take into ac'
count the fact that wealthy indi.
viduals as a group have been doing
very nicely during this recession year
DIVIDENDS HELD UP
Proof of this has just been supplied
by the financial service, Standard &
Poor's. This service estimates that
corporate dividends will be at least
$12 billion in 1858, down only rela-
lively small amount from the $12.4
billion total received by stockholders
in 1857. (Reported in United Press
dispatch from New York, dated Sep
tember 80, 1859
To be sure, there will be some re-
duction in total corporate profits for
1958-but not for many of the cor
porate "Bigs". The chief loser from
such falling off in profits as takes
place will be Uncle Sam as tax col
lector. for the probable decline in cor
poration taxes will be $4 billion.
GUARANTEED ANNUAL INCOME
But this falling off in corporate
tax revenues makes all the more
meaningful the virtual maintenance
of dividends. What we observe is
something equivalent to guaran-
teed annual income for the rich. Busi-
ness volume can drop steeply and
mainly for the medium sized
and smaller corporations-can be re-
duced. But stockholders as group
have a "built-in stabilizer" in the
form of steady dividends.
We are told that there are "many
small stockholders. But now, as for
a long time, the bulk of corporate
stock ownership is in the hands of
relatively small handful of wealthy
individuals and Financial institu-
tons.
PROFITS NEAR ST LEVELS
AS 1858 nears it's close, even the
overall profit situation has rebounded
to it's 1857 level. AS Standard &
Poor's states, eve expect the 299o
decline shown in the first half to be
trimmed to a decrease of 1870 to
209o for the full year +. (and) re-
suits for the final quarter approx
mating those for the closing months
of 1857" cited by BUSINESS
WEEK, August 80, 1858, p. SO.
This rapid recovery in profits, with
its promise of still higher dividends
for the last three months of 1858, has
caused the "big spenders" among the
wealthy to loosen up. According to
the October 2, 1858 WALL STREET
JOURNALS Business Bulletin,
"Big spenders are emerging from
their recession hide-outs."
Says the JOURNAL, "The velvet
rope is up again at New York's Stork
Club where business is running 30
per cent better than year ago. The
upturn began right after Labor Day.
says host Sherman Billingsley. Chica-
go's lively Chez Paree also notes
big improvements: We're beginning
to see lot of old faces once more,
comments Bernard Baygood, one of
the managers.
"Bergdorf Goodman Co., posh
II IL III f1NCIluC WOlIltll WCoi CAPOiA
um, says September was 'one of the
greatest fur selling months we've ever
had. Russeks notes increased demand
for mink in the $4,000 to $1,000
bracket. And Tiffany & Co. is boost
ing it's inventories of higher priced
jewelry-'the kind that sells for $14,- |
900 and up'-in anticipation of a
booming Christmas"
INITIATION NO WORRY
More initiation, about which much
concern is expressed in some quarters,
does not appear to frighten these "big
spenders'. In fact, another round of
initiation which causes prices in the
grocery and other stores to shoot up,
will make dividends even more lush.
Rising prices are special form of
cutting wages-but, by the same to-
ken, the top corporations and their
Misunderstanding stockholders figure
they will be the winners. Just possibly
they may be riding for fall, but they
seem not to worry over that-at least
not now.
FOOD CHAINS OUT IN FRONT
If we were to try to name all of the
Rioc,, uho ora Yidiro biob tbaco n |