The sun., 1918-07-01

war Industries Board is made UP Of
very able and conscientious men who
are making very close study OF the
whole situation. They have before them
the figures furnished by the Federal
Trade Board and are In an intelligent
position to decide fairly between the
Government and producers.
Gary sugEests Remedy.
There may have been proHteering, so
called, in some cases. but IL so 1t is to
be regretted and correction should be
made. The best remedy in all cases is
exposure to the public Of all the facts"
Mr.. Gary added that he did not find
the United States Steel Corporation had
been included in the profiteering
charges. as the report dealth only with net
profit figures. These showed net earnings
In 1915 of SO per cent in 1915 Of 1916
per cent, and in 1917 of 24.9 per cent.
Alfred c. Bedford. chairman Of the
board OF directors Of the Standard Oil
Company of New Jersey and chairman
Of the National Petroleum War Service
Committee. said at his home In Glen
Cove yesterday that he had read the
report OF the Federal Trade Com
mission as published in the newspapers
but could not at that time make any
comment on 1t. but that he would Issue
chairman OF the petroleum committee
this afternoon.
All News to Newhouse.
II have read the story and don't know
what you are talking about" was the
rather surprising statement OF Edgar
l.. Newhouse. vice-president OF the
American Smelling and Refining Conf
pany. when called up at his home in
West Orange by representative of THE
SUN and asked to give some expression
relative to charges that the American
Smelling and Refining Company was ac-
cused Of profiteering at the expense OF
| the miners
5. Guggenheim. S. r. Guggenheim and
isaac Guggenheim. all officials in the
company. could not be reached. 1t was
said their telephones were disconnected
Commenting on the Implication con-
tained in the Federal Trade Commits
sion's statement Saturday relative to the
excessive salaries paid the officials of the
American Metal Company. Henry
Bruere. vice-president of the company.
declared last night that he thought the
commission had misapprehended the
facts.
The high salaries listed. according to
Mr. Bruere, are the result Of a system
that has been followed out in the COM
pany for thirty years. The officials OF
the company receive n nominal sum each
year and in lieu OF fixed salary receive
a percentage of the profits. Many other
corporations do this and in the case OF
the American Metal Company it was
done with the wishes of the stockholders.
who probably figured that such a method
would be an incentive for increased en-
deavors on the part OF the executives.
Changes From Year to Year.
The amount fiuctuates from year 10
year, but at no time has the company
tried to hide any of its figures. Mr.
Bruere further declared that the com
pany for a time Systematically rein
vested It's earnings SO tina; the return OF,
the stock may seem unproportionately
high, but 1t is not really so.
Another fact that Mr.. Bruere brought
out was that the American Metal Com
pany has five subsidiary companies UNI
der 1t and that the same officials man
age each company, receiving profits from
each one. Besides metals. coal and acids
are dealt in.
Mr.. Bruere emphasized the fact tina,
the American Metal Company has beer
low bidder on war contracts and said
that he personally would welcome any
action by which the Government would
completely take over the company IL il
could be run right. The rest OF the ex.
ecutives are just as patriotic. he said
and would work at merely nomlna
salary for the Government.
The company does not shrink from
taxation" he said Rather does il