The Washington Post
September 6, 1926

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- other ‘90,000 business men The only paper in Washington with the Associated Press news every morning in ghe year. oc The U row, fair. | | The Weather — Showers slightly warmer today; Temperature yesterday—High- ' est, 76; lowest, 64. and | tomor- — NO. 18,344. ENTERED AS SECOND-CLASS MATTER POSTOFFICE, WASHINGTON, D. C. WASHINGTON: MONDAY, SEPTEMBER 6, 1926.—_FOURTEEN PAGES COPYRIGHT, 1926 BY THE WASHINGTON POST CO. TWO CENTS. _ Y SINGLE GROUP RULES PRUSPERITY, TAKING MALE OF ALL PROFIT 1,200 Concerns Expected to Split 5 Billion This Year. SIMILAR SUM REMAINS FOR 398,800 OTHERS Government Reports Show Inner Circle Controls Huge Gains; Many Forced Out. By WILLIAM P. HELM, Jr. A single group of not more than is in charge of American prosperity today, a careful and painstaking survey of tax and other returns to the Fed- @ral government discloses. These Men are directors and officers of dominant corporations in many lines of industry — corporations which are setting the fast pace in our. new-found prosperity. They manage the affairs of about 1,200 out of more than 400,000 corpora- tions doing business in America at the present time. The stockholders of those 1,200 corporations will re- ceive in dividends half of the net profits of American business, incor- yorated, in 1926. Measured by the performances of years, there will be a net | profit to the country’s corporations "| of more than $10,000,000,000 in 1926. In 1923 the net profit ’ amounted to about $8,300,000,000. It was somewhat lower than that figure during the rather dull year of 1924, but leaped upward again fn the record-breaking prosperity in 1925. And now, with 1926 eclips- ing last year in volume of business and in profits, net profits are due for another record figure. Ten billions seems _ ultraconservative; this year’s net may run as high as * $12,000,000,000. ably directed. Three years ago the country’s corporations split the net profits in @ manner which gave high testimo- nial to the efficiency of the great corporations, amply financed and To begin, 2 cor- porations out of every 5 made no money at all. They went through the motions of doing business, but declared deficits instead of divi- dends at the end of the year. Elimi- nation of these nonprofitable corpo- rations brought the number of suc- cessful concerns doing business as corporations down to some 233,000. Many Operating at Loss. That proportion, a study of tax returns discloses, probably holds true for today. Two out of every five corporations are operating at a loss at the present time when our prosperity is greater than at any time in the past. The tax returns will show it when they are totaled up for 1926, or there will be the most thorough and complete re- versal of form in the history of the internal revenue bureau. Losses as a rule, are small, relatively, but / mount, on the whole to imposing | proportions. They represent, to large degree, the result of inade- quate capital and inefficient man- agement. To return to the 1923 figures, the totals show that out of 233,000 properous corporations, a little group of 1,026 made nearly half of the profits. That little group represents every line of. industry | American Host to 700 Working Girls in France — (Special Cable Dispatch.) Paris, Sept. 5.—All American records for entertainment of French girls were shattered by Frank H. Maynard, a New York manufacturer, who gave a little luncheon to 700 wmidinettes, mannequins and stenographers. Although loads of Americans in Paris have done pretty well in these lines, the elderly million- aire took all the prizes. The 700 are inmates of the Salvation Army’s new ‘women’s palace.” Maynard gave the girls a 5-franc spread (14 cents)—a vast improvement over the Sal- vation Army’s usual 3-franc (8 cents) banquet—with hors d’oevres, soup, trout, roat beef, cauliflower, potatoes, cheese, fruit and ginger ale instead of wines, because the army here is dry, as it is in the United States. His vee geniy de cost him about $100. (Oopyright, 1926, by the Chicago ecient DISABLED WAR VETERANS WILL HONOR LAFAYETTE Parade Today in Wheel- Chairs Before Statue as Reproach to France. WORK TO LAY WREATH Representatives of more than 20 member organizations of the, Dis- trict of Columbia Federation for Patriotic Observance will hold ex- ercises beneath the Lafayette sta- tue, Pennsylvania avenue and Madison place northwest, at 10 o’clock this morning in commemo- ration of the 169th anniversary of the birth of the Marquis de Lafay- ette. The ceremonies are seen as a subtle rebuke directed at France for her postwar belittlement of the part played by American forces during the recent world conflict. It is understood that this impres- sion will be conveyed more through what is omitted than by what is actually said or done. , “ a a ie at, ial * tet States consul at Progreso, of ille- gally having removed from the country valuable argheological treasures, gold, jade and_ silver, which he had found years ago in a sacred well in the ruins of Chi- chenitza. Thompson owns a ranch at that place. The charges include Harvard university, the Peabody museum in Boston and the Field museum, Chicago, which are alleged to have acquired these objects. They are accused of. being accomplices in that they received alleged stolen wproperty. + The district attorney has re- ceived an order to attach Thomp- son's ranch. The objects in ques- tion are valued by Mexican govern- -_ |ment experts at more than $500,- 000. New Paris-N ew ‘York boone will attempt a nonstop Paris- | vad ete © prize. A special 420-! Ba coge Is aneueeee : ~' Make 17-Mile Swim Special to The Washington Post, New York, Sept. 5.—While plans went forward today for welcoming Clarabella Barrett, defeated chan- nel swimmer, On her arrival here to- morrow, Phyllis and Berenice Zit- tenfleld,- 12-year-old twins, negotiated the Hudson § “from Yonkers to the battery. The twins time was six hours for the 17% miles. Ethel Vosper, 13, in her first rough ‘water attempt at Rockaway, crossed the 3% miles from Broad channel] to Monte Carlo in 58 minutes, | |Sailor Fails to Swim | The Catalina Channel |A. P.).—John. Radowich, sail | maker’s mate on the ‘U, 8. 8. Mary-| aft today | ‘San Pedro, Calit., Sept. 5 (By) lishing bases at Novorossisk and Odessa. Representatives of the two prov- inces have requested the win a ment to take measures to prevent such bases, pointing to the danger which - they declare would result from the maintenance of a soviet war fleet in that area. The government also is asked to make representations to Moscow re- garding the mission of the fleet. Helpless Mother, 98, | Sees Son: Kill Man Special to The Washington Post. Chicago, Sept. 5..-Fred Breum- sted, aged 60, supposed to he men- tally affected, ran amuck today in Effingham, i vie nes and, failed today in his attempt to|s ver: ‘swim the a mile channel between the I! we ange ila oni te » ad r ee a + sleepers, two dining cars° and an observation car. Meager advices said rescue’ work was hampered, as the cars were up- side down in the river. The route, considered one.of the most scenic in America, is known as the Royal gorge. - 2 Brothers, 2 Sisters Are Drowned in Lake Durango, Colo., Sept. 5 (By A P.).—Two brothers and two sisters were drowned in Electra lake, 22 miles west of here yesterday, when the motorboat in which they were riding capsized. | Lewis, 18 and 20, res ively, and Alfred and Bernard Leithauser, 23, and 26, all of Duranko. The dead:are Lillie and Bertha : chang with field and machine guns. (Copyright, 1926, by the Chicago Tribune.) i » tonight ris, in speak. POST RADIO HOUR FOR LABOR DAY HAS VARIED PROGRAM Talks on popular subjects, an instrumental concert and . vocal solos will feature The Post Labor day radio. pro- gram, broadcast at 6 o’clock from Station WRC. The recital by. the Colum- bia trio will include composi- tions by Victor Herbert and Massenet. Dr. Mary B. Har- charge of the new women’s— Donel institution at fe -bgey We stab , alk pat ‘Ace yt Waa and Dr. ) _a radjus of ten miles. Marceron’s orchestra. The pavilion is owned by Capt. William Northern. The blaze, which started at 8:30 o'clock last night and continued un- til-nearly midnight, attracted resi- dents of Prince Charles county for sent from Washington and driven the entire distance of nearly 40 miles in barely more than one hour, were the only firefighting apparatus on the scene. They were driven by KE. H. Garrick and G. M. Heigh, of No, 15 company. Before the arrival of the engines, a bucket brigade made up of nearly 700 visitors at local hotels, was ean to keep the fire trom Spread- ng Man Swims 30 Miles | Across Mobile Bay \, \-Mopite, Ala., Sept: “t (By A. P.). Two engines ficers and commanders have been arrested and confined to their quar- ters,” Equipment Is Seized. A special decree declares that in view of the persistent and notorious lack of discipline of the artillery branch of the active army, culminat- ing in acts of insubordination at Se- govia,.in which the cadets of the military academy also participated, the moment had arrived ‘‘to suspend from duty and pay and the preroga- tives of their rank all artillery of- ficers except those in Morocco, whom we believe to be complying with their oath and duty before tha, ) enemy.” This, the decree adds, also applies to the rank and file. They are or- dered confined to their barracks — with their standards and all other ‘a ere age eral cit 2 “The ca ns n wor" en Rudolph. Seeberg, oft : MOCRS pai f | governors) ite