The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-06-29
WAKING RICH
Continued from .gs one,

|
Continued from .ge One,
line, the Industry being one where the
law of supply and demand still oper-
| ates. The operation of this law is
held to be in part responsible for the
heavy profits, but a portion of the
blame is laid to the spreading of false
! reports regarding supplies
Steel companies made abnormal
profits before the government fixed
| price for the product and it is shown
| that some have since made unusual
returns. Profits of the United States
| Steel corporation are estimated at
2i.9 per cent in 1917, as compared
| with 1876 per cent in 1915 and So per
| cent in 1915.
| Officials Draw Big Salaries.
In practically every one Of the other
| industries covered by the report, it is
shown unusually heavy profits have
been made in the last few years. Alb
have been paid executive officials.
Trade practices contributing in ad-
dition to the profits to higher prices
| to consumers are noted as failure to
ship goods on a rising market or re-
| fusal to accept goods on a falling
market commercial bribery, and the
| tendency of manufacturers to main
| tain a resale price.
Armour, Swift, Morris, Cudahy Profits.
Armour, Swift, Morris and Cudahy
| were designated as the leaders in meat
| profit; the Wilson company's profits
was large but not comparable to those
of the remainder Of the big five.
Morris Made 26S Per Cent.
The profits of Morris & Co., for the
fiscal year ending November, 1917, is
equal to the net worth of the company
| Capital and srplus) and 1851 per
cent on the 100000 capital stock
outstanding. In the cases of the other
four companies the earned rate is
from 27 to At per cent.
| One Steel Mill Made S18 Per Cent.
No less astonishing are the revela-
1 tons concerning some steel mills in
class three-those which start with
furnaces-and who recently complain
ed that government prices were too
low for them. 1t was found that in
one instance 1887 per cent profit had
been made, while many others aver
aged over 100 per cent
| The copper industry more than dou-
bled its average earnings.
Twenty-one companies made profits
| in 1917 which ranged from 1 to 101
per cent on their investments. The
average profit was over 24.4 per cent
as compared with Ill per cent IN
1913, a normal year. These increases
| were partly due to the heavy war de-
| mands.
| zinc INDUSTRY NorIuuA.
No unusual profits were found by
the commission in the zinc industry
with the exception of the New Jersey
Zinc company. Basing percentage on
| the capital stock issue of $35, 100000,
this concern made 5s per cent profit
| in 1917 and paid a dividend OF 46 per
cent The large profits Of this con-
Ecern are explained by the possession
of an ore body of usual purity and
| richness.
The international Nickel company
made profits in 1916 of $13,557,o0o,
40 per cent.
| The increased profits here are due
largely to increased output, rather
than advanced prices. The commits
| sion was not inclined to blame them
| for profiteering.
| Information of the commission does
! not indicate excessive profits on Iuln-
Der on the western coast.
! Forty-eight southern pine producers
made an average profit on the net IN
vestment in 1917 of 1T per cent as
| compared with So per cent in 1916.
Coal Mines Made 90 Gents a Ton. =
Twenty-three bituminous coal mines
in central Pennsylvania averaged
margin of 80 cents a ton in 1917, as
COMPARED with 20 cents in 1915. The
highest margin of any of these com
panies was $1.85 as compared with II
| cents in 1916.
| out OF the 1o6 refining companies
| investigated, the first quarter of 1879
shows an average profit of about u
per cent. The average pre-war profit
was about Is per cent.
Leather industry profits increased as
| high as five times over those or pre-
/ war years.
| Milk Company Made 65 Per Cent.
Survey of the leading canned milk
companies show that practically every
| decrease or decline was inaugurated
by either the Borden Condensed Milk
| company or the Helvetia Milk Con-
| densiug company In 1917, according
| to the statement CT the company. Hell
vetia made over 20 per cent on cost
and IS per cent on investment The
] cent on cost, considered relatively
/ high.
| FYfty-Two Per Cent on Salmon.
proximately SIS per cent on the net
| investment. This average does not
reveal that come Of the low coast COM
panies included ir the average made
over geo per cent.
| Numerous subterfuges were resorted
| to by concerns c ming under the ban
of government price fixing. In many
cases the companies sought to evade
| the law by account juggling. the re-
port said. SoAe padded costs by heav
lily increasing officers salaries. One
| concern was found to have char led to
| expenses nearly So 900. 900 paid IN SAL
| aries and commissions. Several single
items showed payments of over $780,
900.
| T0DAY'S MARKET REPORTS