Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1918-07-06
u. S. Report Declares Meat Pack
erS "Have Preyed Upon Peo-
pie UnconsCionably."
TRADE BOARD NAMES FIRMS
Flour Millers, Coal Mine Operators and
Steel Interests Also Accused of
Huge Profiteering Operations
in Filling War Orders.

Washington. July 1.-Investigs,.
TONS carefully conducted have led to
the conclusion that profiteering exists
among American industries at the nres-
ent time. due in part to advantage
| peihs taken of war pressure for
heavy production" and I'm part TO Elm
ORDINATE greed and barefaced fraud"
the federal trade commission an
houhced in report sent to the sem
ate Inc report was submitted in re-
spouse to resolution asking the COM
missionetO furnish the senate with nil
ngures and information relative to
prohteering, in order that steps might
De taken to remedy present condi-
lions.
Big Packers "Prey Upon People"
The report declares that unprece-
denied profits are shown in a survey
OF the packing industry. In this con-
necuon 1t is said: give meat pack
ers, Armour, Swift, Morris, Wilson and
Cudahy and their subsidiary and affili-
ated companies have monopolistic con-
NNAN meat iHduStIY anu uT6
reaching out for like dominion in 9TH
er products. Their manipulatiOns of
the market embrace every device that
Is useful to them, without regard TO
Jaw. Their reward expressed in terms
OF profit, reveal that four of these con-
Germs have pocketed in 1915-1916-1917
Sl40000,OO0. However delicate def
milton is framed for 'profteering.'
these packers have preyed upon the
people uncOnsciOnably."
Heavy Profit by Flour MiIIers.
Other outstanding features of the re-
port, each supported by extensive data,
are:
The heavy profit made by the low
cost concern under a government fixed
price for the whole country.
The heavy profit made by the flour
millers.
The trade tendency to increase and
maintain prices against the forces of
competition.
The report is based on cost find
lngs by the commission for the war in
| dustries board, the food administra-
ton, the fuel administration and other
| executive departments Of industrial
| surveys and through enforcement of
laws against unfair methods of COM
petition The products investigated,
and which the report covers, are steel
copper, zinc, nickel sulphur. lumber
flour. canned milk and canned salmon.
Salaries and bonus paid high officials
also were the subject of inquiry.
Price fixing by the government. the
report says, has tended to prevent the
market from running away, but
at the same time it strengthens the
stronger factors in industry in their
positions and enriches them by profits
which are without precedent"
"Profits Are IndefensbIe."
While the price of flour has been
| stabilized by fixing a price for wheat
and maximum margin of profit for
flour, the report show that profits in
| creased from an avera@a of II per
cent on the investment for the four
years ended June go 1916. to nearly
80 per cent in the year ended June 30,
| 1917. These profits" it is stated.
| 'are indefenSible, considering that an
average profit of one mill for six
months of the year shows as high as
50 barrel" Many millers exceeded
the government maximum for profits
| and to that extent "the profits were
| larger and in general. In fact. were
very great"
investigation in the coal mining in
/ dustry reveals. in the opinion of the
! price fixing, large margins of profit
| have been made. Ranges in the cost
! of production in a field having the
same maximum prices has caused some
| operators to make small margins of
profit and others large margins. the
bulk of the production enjoying the
large margin.
In the oil industry large profits are
now being made in fuel oil and gas
oline. the industry being one where
the law of supply and demand still
operates,
Huge Profits in Steel
Steel companies made abnormal
profits before the government fixed a
price for the product, and it is shown
that some have since made unusual
returns. Profits of the United States
1 Steel corporation are estimated at 24.9
per cent in 1917, as compared with
1876 per cent in 1916 and 50 per cent
| in 1915.
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
normal salaries are also shown to
have been paid executive officials.
Trade practices contributing in ad-
dition to profits to higher prices tc
L ct,s ~ 81 y