MAKING MILLIONAIRES.

Auckland Star, Volume LVII, Issue 199, 23 August 1926, Page 4

MAKING MILLIONAIRES.

BIG BUSINESS IN U.S.A. TELEPHONES AND MOTOR CARS. The United States of America with their huge population and marvellous resources provide an unrivalled opportunity for the building up of businesses on a mammoth scale.

Estimated or reported earnings of 10,000,000 dollars or more during 1925 were made by ninety-four American corporations, according to an article on "The Big Money Makers of America" in the current issue -of the "American Bankers' Association Journal."

The American Telephone and Tele-1 graph Company heads the list with j 107,000,000 dollars; General Motors Cor-' poration is second with 106,000,000 dci-| lars. Earnings of Ford Motor Company! are not published, but estimates o"f ; 100,000,000 to 115,000,000 dollars for 1924 indicates its petition for 1925. Those of United States Steel Corporation are reported as 90,000,000. Standard Oil Company of New Jersey is ranked with the leaders. "There is a wide gap between the 'Big Five' and the corporations that follow in their wake," says the article. "In examining the capital structures, it is apparent that the difference in the amount of the earnings of the leaders and the lesser corporations is roughly in proportion to the amount of capital employed.

"There has never been a time when there were so many corporate earners of the United States in the 10,000,000 dollar a year or better class. Since 1921 the ranks have grown larger. That year there were 32; in 1022, 51; 69 the next year, and 75 in 1924. With business moving along more briskly during 1925, the earnings of representative corporations were nearly a third larger than for the preceding year.

"It is a struggle for a corporation to bring its earnings above 20,000,000 dollars. ... A new high record was set during 1925 when it is indicated that 27 cleared the 20,000,000 dollar barrier as compared with 20 for 1924 and 1923; 19 in 1922 and 14 in 1021.

"While bank earnings upward last year, it was-not observed that any bank was in the company of the newcomers. As bankers know, earnings of banks are moderate, but there is a widespread popular notion that their moneymaking capacity is enormous. No more than two banks out of 28,000 make as much as 10,000,000 dollars a year.

"Nine automobile manufacturers ha 1 earnings of more than 10,000,000 dollars. The rubber companies had a banner year, even if crude rubber did go up like a skyrocket. Fifteen or more oi! companies made 10,000,000 dollars or more, while a number of the leading industrial corporations attributed a substantial part of their earnings to the automotive development. One maker of automobile bodies amassed 15,000,000 dollars."

Many of these corporations, says the I article, are known as the best managed j firni3 in the country, and "this capacity j and acumen naturally is reflected in the' rate of their earnings, although these j are controlled in a large measure by the ' purchasing power of the buying public."