anaheim-gazette 1948-03-25

EMPLOYEES SATISFIED CUSTOMER EARNINGS RE-INVESTED IN THE BUSINESS 3.7¢ WEAR & TEAR LET'S SEE HOW In 1947 all of us at General Electric increased $65,000,000 in taxes to the G.O.F these earnings toward Electric as a safe, sound, took care of the best int. How our Customers made out Despite our growing pains and our troubles in getting a balanced flow of materials in 1947, we still supplied our customers with $1,300,000,000 worth of goods, a new all-time high. We did this at prices only 33% above those of 1940, although the pay of the individual hourly employee was up 70% over 1940, and the prices of all manufactured products of others averaged 78% over 1940. This accomplishment will now be further enhanced as a result of the action of General Electric in stepping out ahead on January 1, 1948, in an attempt to reverse the inflationary spiral with a voluntary reduction estimated to save consumers $50,000,000 this year. How our Employees made out We furnished our employees with an average of 185,000 good, steady jobs during the year, and the number had mounted to 197,000 at the end of the year. In each community, we were diligent in trying to be very sure we were paying what was right in all the circumstances there for the skill, care, and effort put forth. There were other substantial financial benefits, but the hourly pay itself had increased an average of 70% since 1940. We also tried to provide working conditions which were the best possible in the circumstances. We tried to see that supervisors gave real How our Employees made out We furnished our employees with an average of 185,000 good, steady jobs during the year, and the number had mounted to 197,000 at the end of the year. In each community, we were diligent in trying to be very sure we were paying what was right in all the circumstances there for the skill, care, and effort put forth. There were other substantial financial benefits, but the hourly pay itself had increased an average of 70% since 1940. We also tried to provide working conditions which were the best possible in the circumstances. We tried to see that supervisors gave real help in getting work done the best way, — and to lead rather than push our employees around in doing this. We provided steady work, except where there were changes in customer needs or interruptions in the flow of materials from forces outside. We tried to give the facts about a job and about the conditions that surrounded that job with opportunities and limitations. We tried to provide a chance to get ahead. We tried to be sure our employees were treated with respect. We tried to have our employees see how important we felt they were in the picture. We tried to go beyond all that and help our employees find their jobs interesting and satisfying. In addition to what we put in the pay envelope and paid to others on our employees' authorizations, we provided paid vacations and holidays, pensions and life insurance, and other valuable benefits from working at General Electric. We want to keep on turning out produc keep on furnishing more and ever better jobs for our suppliers; to keep on supply our stockholders with earnings appropri ANAHEIM GAZETTE EMPLOYEES 43¢ SALES DOLLAR SUPPLIERS 43¢ GOVT. 4.8¢ STOCKHOLDERS WEAR & TEAR 2.1¢ HOW WE ALL MA of us at General Electric together accomplished a new record through shipments worth increasing jobs to 197,000 and payrolls to $560,000,000; through our tax in taxes to the Government; through earnings of $95,000,000; through our applying earnings toward increased productive capacity; and through our enhancement a safe, sound, strong institution with more and better jobs. Here’s how we of the best interests of each of those groups in whose behalf we have been How our Suppliers made out We bought goods and services amounting to $560,000,000. Thus, in addition to the jobs we supplied in our own plants, we supplied about an equal number of jobs in other places of employment clear back to the mine and the farm, since our purchases were in the end largely made up of labor in other places of employment. In short, General Electric’s productive activities must have resulted directly and indirectly in about 400,000 jobs, half in our plants and half outside. In addition, there was a still far greater number of jobs created in the spending by these 400,000 people of the resulting payroll money. How our Government made out While we have now reduced our prices on many items below our competitors, we were selling in 1947 quite generally up to competitive market prices. Yet, without charging our customers any more than did companies which were just breaking even, we were able to deliver, in income taxes alone, $65,000,000 out of our earnings to the support of the government. In short, as an efficient producer we were not only able to sell our products at the market prices, pay the going rates to almost 200,000 employees, and keep the confidence of our stockholders so they would continue to risk our owners so long when when their o one else's. Bu employees an thing we take position and paying off th production, a Our stock 9 per cent ov 250,000 of th really expect have risked t However, we will be found How ou In view of the a so greatly er achieving these While we have now reduced our prices on many items below our competitors, we were selling in 1947 quite generally up to competitive market prices. Yet, without charging our customers any more than did companies which were just breaking even, we were able to deliver, in income taxes alone, $65,000,000 out of our earnings to the support of the government. In short, as an efficient producer we were not only able to sell our products at the market prices, pay the going rates to almost 200,000 employees, and keep the confidence of our stockholders so they would continue to risk their savings in backing the Company's activities, but we also performed the tremendously important service of collecting for the government a vast amount of taxes the government needs. How our Owners made out After we had paid our employees, our vendors, and our government and had provided for the wear and tear on our facilities, we had $95,000,000 left as earnings for our stockholders. But despite our having borrowed $200,000,000 without being able to pay any of it back yet, we still had to use $49,000,000 of these earnings to apply against the extra inventories and the other necessary outlay for the administering of this new high volume of business and this new high number of steady jobs. We know g out products that represent an ever better value to ever more and ever better jobs; to keep on being an ever better customer th ep on supplying needed tax dollars to the government; and to gs appropriate to the risk they take in backing our plans and ac ANAHEIM WORKS GENERAL ELECTRIC Thursday, March 25, 1948 STOCKHOLDERS 3.4¢ MADE OUT! through our aid of over through our applying $49,000,000 for enhancement of General here's how we believe we we have been working: our owners are unhappy about continuing at the $1.60 dividend rate for so long when the value of this $1.60 has been depreciated so much and when their own costs of living or operation have gone up just like everyone else's. But we have had to do what we have been urging on our employees and others to do. We have had to refrain from paying out everything we take in. We have had to retain some savings for a sounder financial position and against the inevitable rainy day. Also we have got to start paying off these loans which helped finance the expansion of facilities, production, and the number of jobs. Our stockholders have found our average earnings of a little under 9 per cent over the past 31 years reasonably satisfactory, although the 250,000 of them, as well as most other people with savings to invest, really expect a minimum of 10 per cent profit on sales whether they have risked their money in a corner grocery or a large corporation. However, we believe that our earnings in 1947 of slightly over 7 per cent will be found satisfactory under the circumstances. How our 15,000 Supervisors made out In view of the increased difficulties and responsibilities in administering a so greatly enlarged company, our supervision did a fine job in 1947 in achieving these new highs—in production, in payrolls, in business supplied How our 15,000 Supervisors made out In view of the increased difficulties and responsibilities in administering a so greatly enlarged company, our supervision did a fine job in 1947 in achieving these new highs—in production, in payrolls, in business supplied to vendors, in contribution to government expenses, in earnings, and in savings for reinvestment in making General Electric sounder and stronger. The compensation of our managers for this was based on the market value of the skill, care, and effort put forth — just as is the pay of every other G.E. employee. We have paid in each case approximately what would have to be paid to get someone else who could carry the responsibilities and whose individual accomplishments would be equally great. Pensions and other benefits have necessarily been in proportion, since employers seeking the services of executives these days realize that taxes take from one-fourth to three-fourths of the pay of people in supervision and that the immediate "take-home" is becoming less important than the provisions for the future through pensions and other benefits. Accordingly, these benefits are a substantial part of the attraction offered to get and hold managerial talent. to ever more satisfied customers; to our customer that builds production and ment; and to keep on trying to reward plans and activities with their savings.