Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-08-17
INCOME TAX
SHOWS WHO
PR0FITEERED
Detailed information -on
Prohteering is Presented
to Congress.

Washington. Aug. 17.-War
prohteers in 1917 were most numer-
GUS In business devoted to food pro-
duction and distributions cotton and
wooden g manufacturing and dealing.
coal mining, iron, copper. alumin9m
production n distribution. accord
ing to a treasury analysis of income
tax returns.
In addition thousands of small
concerns in a great variety Of indus
trial and commercial classifications
made prof1tH ranging from one hum
dred to three thousand per cent above
their normal profits for pre-war
years. which even then were consid-
cred high.
Detailed information on the extent
of war ~proiteering has been given
congress recently in compliance with
federal trade commission Is UNDER
stood to have obtained considerable
information from the income reports
in preparation of. its criticism Of the
meat packing industry.
In citing certain industry or COM
merce 'cla%ssiications as containing
the largest percentage Of profteers.
the treasury has made it clear that
not all individual businesses in these
groups have gathered in swollen
earnings. This is true particularly Of
enormous profits, often several hum
dred per cent higher than good earn
ings of former years, while others
made barely enough to pay justified
dividends.
With few exceptions, manufactur-
ers OF clothing and shoes reported
big profits. This was true Of most
concerns holding government con-
tracts, many Of which we're let early
In the war when the government felt
compelled to stimulate production Of
the vast quantities of supplies needed
by the army. Scores of income re-
ports from suit, shirt, u~nderclothing
and shoe manufacturers showed
earnings of from 80 to 100 per cent
iii invested capital.
Lumber production, stimulated by
the sudden enormous demand for
environments and other government
operations, melted forest and saw mill
owners as we'll as distributors profits
several times above those Of normal
years.
Oil producers made enormou.
profits which they claimed were jus
tilted by the rapid depreciation OF
properties n the extra financial
hazard of their business.
Despite high cost of labor and
other factors entering into mining,
the treasury analysis shows that very
few iron, copper or aluminium mines
failed to make tremendous profits for
their n under the government
policy of stimulating production
Producers of silver, gold, platinum
n other precious metals pro:ted tc
Automobile and motor truck
manufacturing was highly profitable
although income returns show tina,
earnings of different plants were ia,
from uniform. some making as high
as fifty per cent on investments ant
Others less han ter per cent.
Meat packers, -four .millers an6
Gamers apparently stood at the tor
of the list of food profit takers, &C.
cording to income returns Farmer
also made money heavily last yea
but not enough of their returns hav.
been analysed to justify a genera
statement Of their profits, Officials
say.
P%rofteering was by no means con
fined to big business interests. Small
scale producers in thousands Of case
reported profits equal to the aggre
gate of from five to ten years earn
fngs before the United States entered
!, the war.