Salt Lake Telegram | 1932-06-15 | Page 20 | Size May Handicap Big Corporations

Size May Handicap Big Corporations In a current analysis of the trend of ot corporate earnings the Standard Statistics Statistics Sta- Sta company finds evidence that as ashe the he size sue of the industrial unit increases increases in- in creases its ability to withstand sudden sudden sud- sud den en but brief economic squalls is strengthened On the other hand vulnerability vulnerability grows in somewhat rough proportion to the duration of the de- de The survey continues in inart part art as follows These points are illustrated among the larger companies by the tendency ot of f U. U S. S Steel and General Motors earnings to maintain stability rela rela- tive to the industrial list In the early stages of depression but to decline more rapidly in the later stages Overhead charges which appear fully justified for large companies in times of ot normal trade and profits consume a l rapidly rising portion o of gross income as sales volumes dwin dwin- dle die Indirect expenses involved inthe in inthe inthe the maintenance of a far flung nung productive productive productive pro pro- and distributive organization are not subject to immediate or complete com com- plc adjustment Managements discover discover discover dis dis- dis- dis cover that they have a certain certain certain tain large larse proportionate degree of responsibility responsibility re re- in the support of the community community community com com- from which they draw their personnel Their expensively trained and highly skilled staffs cannot be bc utterly disbanded save as a last re re- re- re sort Briefly Brien these factors which provide provide provide pro pro- vide an inestimable asset In times o of prosperity involve equally serious elements clements of rigidity during protracted depression