The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1918-07-04
Trade Relations Commission, In
Report to Congress, Scores
Packers As Worst of All
Wartime ProfiteerS.
OTHERS EQUALLY GUILTY
Facts Upon Which New Legis.
lation Will Be Based, Reveal
How Big Concerns Have
Mulcted Public.
BY United Press.

American business is gorging In war
profits. Profiteering exists-some of
1t due 10 inordinate greed, some to
bare faced fraud" and some to ad-
vantages taken of wartime needs for
production.
The federal trs3e commission so re-
ported to the Senate today, showing
among other astounding figures that
four Of the five big packers reaped a
$40, 900 900 profit in tine war years
19l5-19l7, Of which 1921, 600, 900 repre-
sented an excess over pre-war profits.
Tho packers, particularly came in
for heavy scoring. but other lines, in
GLIDING flour milling n basic indus
tries were shown to be realizing vast
sums above peace time profits.
However delicate a definition is
framed for 'profitcering,'" said the re-
port, these packers have preyed upon
the people unconscionably."
New Regulations Forecast.
Tl.ey are soon to come under further
governmental regulations approved by
executive order"
The report, intended as ar exhibit
wherein the Senate could base new
legislation. showed among other things
that government fiXatlon of prices on
some basic industries had an evil
tendency in that il gave a great ad-
vantage to low cost concerns.
The commission has reason to know
that profiteering exists" said the re-
port. Much OF il Is due to advantages
taken of the necessities of the times as
evidenced i'll the war pressure for
heavy production. Some Of it is attrib-
utable to inordinate greed and bare
faced fraud"
Packers Profits Lsrya.
Armour, Swift, Morris and CuIahy
were designated as the leaders in meat
profits. The Wilson company's profits
were large, but not comparable to those
of the remainder of the big five.
h profits Of Norris & Co. for the
fiscal year ending November, 1917, are
equal to the net worth of the
Capital n surplus) and 26S.7 pei
cent on the $4,000, 900 capital stock out
standing. In the cases of the other
four companies the earned rate is from
q TO AZ per cent.
No less astonishing are the revela-
lions concerning some steel mills in
class three-those which start with
furnaces-and who recently complained
that government prices were too low
for them. 1t was found that in one in
stance $40 81 per cent profit had been
made, while many others averaged over
100 per cent.
U. S. Steei's Earnings.
In the period prior to the govern
ment's price fixing abnormal profit was
made by the United States Steel cor
poration, whose profits rose from rs
per cent in 1914 10 24.9 per cent in
l9l7.
TIE aet income OF .hc corporation for
1917 after deducting federal income
and excess profits taxes was $244, 1885,
90S, Of which about one-tenth was ap-
plicable for dividends and surplus as
compared with SAG, $50, 407 in 1914.
The copper industry more ths.n
doubled it's average earnings. Twenty
one companies made profits In 1917
which ranged from / to LOT per cent on
their investments. The average profit
was over E4.4 per cen as compared
with III per cent in 1919, a normal
year These increases were partly due
TO the heavy war demands.
Zinc Companies o. X.
No unusual profits were found ..y .he
commission in the zinc industry with
the exception OF the New Jersey Zinc
company. Basing percentage on the
capital stock issued of $35, 900 600, this
concern made Sc per cent profit in 1917,
and paid a dividend of az per cent. The
large profits of this concern are ex-
planned by the possession of an ore
body of unusual purity and richness.
The International Nickel company
made profits in 1916 of s13,557 900, 40
per cent.
The Increased profits here are 7ue
largely to increased output, rather than
advanced prices. The commission was
not INCLINED to blame them for prof
itevinS.
Information of tn, commission does
not Indicate excessive profits on lum-
Der OF the western coast.
Forty-eight southern pine producers
made an average profit on the net in
YES - ell in 1917 of II per cent rs com
pared with So per cent in 1918.
Profiteering in Coal.
Margins OF the coal industry in ~cry
cases were two or three times normal.
trail Pennsylvania averaged a margin
o: 80 cents q ton i'm 1917 as compared
with 20 cents in 1916. The highest
margin of any of these companies was
81 SIS rs compared with IL cents in
1916.
Out e 100 refining companies g.
e~stigated, the first quarter Of 1918
elbows 81 average profit OF o u per
cent. The average pre-war profit was
about 10 per cent.
Leather industry profits Increased
as high as five times over. those %.
pre-war years.
The flour m:llers nave had unusua!
profits and their average earnings are
said 10 be SO per vent OF The invest;
mcnt,
The average net profit Of jobbers
for 1913 and 1914 Is sale 10 have beer
is cents per barrel, but increased
20 nearly so cents in 1917.
Milk Concerns Fatten.
Survey OF the leading canned :a'lk
companies show hat practically every
increase or decline was inauguratcd
by either the Border, Condensed Milk
company or TIE Helvetia Milk Con-
de,;sins II 1917, according
20 he statement of the company. Hei-
vt'ia made over 90 per cent ON cost
ar Ga per cent on INVESTMENT. The
Borden made approximately IL per.
Ger on cost, consideped relatively
hisl
Salmon canncrs' profits were ap.
?!oximatciY 52.s- per cent on tho ner
Investment. Tt!h average does not
reveal that some Of tho ioy cost Cent
.nnics Included IN .he average mac.
over 200 per cont