New-York tribune., 1916-07-12
Wealth Thrust Upon Those
Who Least Expected 1t
Two Years Ago.
POVERTY HAS COME
TO ILL-PREPARED
Standard of Living Changed
Business Rises for Many, De-
spite Tax on Excess Profits.
BY ARTHUR S. DRAPER.

London, June 22.-War has turned
business topsy-turvy, enriching men
who were having hard work to make
ends meet two years ago and swamping
others who had been riding on top Of
the wave of prosperity. Fortune has
fallen into laps least expecting IT.
Poverty has come to many Ill prepared
to battle with it.
Great Britain is passing through a
momentous economic and financial
period. Classes, so far as they are de-
termined by wealth and the advantages
it brings, are changing with lightning
rapidity. War is altering standards Of
living among rich and poor. The earn
ings Of the laborer have increased 100
per cent in many cases; the unearned
income Of the wealthy has decreased so
per cent. These are the two extremes.
Between them is the great middle
classes, who must struggle along on a
third or less of their normal income.
a loWtT CLASS 4diHllN VI olA -idNHei, I,
mother and four children under eigh-
teen years frequently lived on less
than So a week. The father is now in
the army and the wife is drawing a
separation allowance of considerably
more than S5. Financially life is
easier for her, despite the increased
cost Of food.
Shipping Profits Increase.
Take a middle class family of four
, father, mother and two children. On
from $50 70 S45 a week they had no
financial worries. lived comfortably
and happily before the war. Now the
father is wearing khaki and the wife
must struggle along on separation
allowance Of slightly more than So Il
week.
Consider the case of a middle class
family which contains no members OF
military age. Suppose it has an income
Of $1,000. Out of that it must pay an
income tax of Sl55 and from 90 TO go
per cent more for food than it did be-
fore the war.
But there Is another side to the
picture-the antithesis OF what we
have seen. Long ago approaching
that fabulous sums would be made BY
manufacturing, industrial and shipping
concerns in the United Kingdom, the
British government decided TO tax ex-
cess profits at so per cent. IL must
be remembered that manufacturers
must now pay the highest wages in the
history Of the country, their materials
are much more costly and their for
eign trade has been hampered by re-
strictions, but still they are able TO
show stupendous increases in earnings
this year over 1914. Many British con-
Germs have done a large business for
Allied governments, as well as their
own. especially in army equipment.
An examination of the annual re-
ports OF a number OF large British
companies produces startling figures.
For extremely large increases upon
profits which we're already good before
the war by far the most notable are
the shipping companies. In virtually
all cases the dividends have been sub.
stan,ial, and frequently big melons
have been cut
-Four companies will suffice 70 show
what British steamers have earned for
their owners. In 1914 the British and
African Line made a profit Of s205.0 900;
this year 10 amounts 20 s470000. Two
years ago the Court Line profits were
$4,000; this year they are $685. 900.
| The Leyland Line showed profits Of
S2.g44. 600 in 1914 and s7,205000 in
1916 and the Royal Mail s2,ls0,0OO in
1914 and si.o40,o0o this year
Rubber and tea companies have