The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-06-29
REPORT EXPOSES
WAR PROFITEERS
INBIG BUSINESS
Continued from First Page,

Continued from First Pags.l
those OF the remainder o. the big Ave.
The profits OF Norris & Co. for the
fiscal year ended November. 1917. is
equal to the net worth OF the com
pany (capital and surplusl and 1887
per cent on the $4,000. 900 capital stock
outstanding. In the cases ofthe other
toYT companies the earned rate q
FROM % to a. per cent.
No less astonishing are the reve-
lations concerning some steel mills
which have been graded in class D.
those which start with furnaces-and
which recently complained that Gov
eminent prices were too low for
them. When agents Investigated
their returns Il was found that In
one instance 3lo.67 per cent profit had
been made, while many others aver
aged more than 100 per cent.
Q. 5. Steel PTosDerA
In the period prior to the Govern
ment's price-axing. abnormal pronk
was made by the United States Steel
Corporation. whose profits rose from
IS per cent in 1914 to e49 per cent
IN 1917. The net income Of the cor
poration for 1917. after deductfng
Federal income and excess proat-tAx.
was S244. 73S, pos. OF which about one
tenth was applicable for dividends
and surplus. as compared with $46.-
$50. 40T in 1914.
The copper industry more than dou-
bled its average earnings twenty
one companies made profits in 1917
which ranged from 1 TO 10T per cent
on their Investments The average
profit was over 24.4 per cent as COM
pared with III per cent in 1918, .
normal year. IL was pointed out that
these increases are partly due to the
heavy demand for this metal. used al
most entirely for war purposes.
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 SIS ,OOO.-
900. this concern made Sc per cent
profit In 1917 and paid a dividend OF
46 per cent The large profits OF
this concern are explained by the
possession OF an ore body OF unusual
purity and richness.
Nickel Dividends Vast.
Tue dominating factor in the
nickel industry Is the international
Nickel Company. which produces
practically the entire output OF this
country. Its profits In 1916 were
$685., 900 and the dividends were
S10b76. 900. which sums amounted -
40 And 81 per cent, respectively. OF
the investment as computed by the
commission.
Out Of log refining companies in
Vestigated the first quarter OF 1918
shows an average proht OF about n
per cent on the investment. The
average pre-war proht was about Is
per cent
The increased profits here are due
largely to increased output rather
than advance prices. The commits
sion was not inclined to blame the
corporation for prohteerinE.
Information OF the commission does
not indicate excessive profits on lum-
Der on the Western coast Forty
eight Southern pine producers made
an average profit on the net invest
ment in 1917 of Il per cent. as com
pared with So per cent in 1915
In Coal Industry.
Margins OF the coal Industry In
many cases were two or three times
the normal return Twenty-thres
bituminous mines in central PennsyI-
vania averaged a margin OF 90 cents
a TON IN AoA a. compared win ~
cents in 1916. The highest margin
Of any of these companies was S1-sS
as compared with Al cents in 1916.
Leather industry profits increased
as high As ave times over those in
earlier years
The -four millers have had unusual
profits and theeir average earnings
are said to be SO per cent OF their in
vestment The average net prOfit OF
jobbers for 1918 and 1914 is said 70
have been about Is cents per barrel,
but increased to nearly 90 cents in
1917.
The survey OF the leading canned
milk companies show that practically
every increase or decline was In
augurated by either the Borden Con-
densed Milk Company or the Helvetia
IkMl Condensing Company. In 1911,
according to the statement OF the
company. HeIvetia made over 20 per
cent on cost and IS per cent on in
vestment The Borden made ap-
proximately IS per cent on cost con
sidered relatively high
Salmon Gamers profits were ap-
proximately 52.S per cent on the net
investment This average does not re-
veal that some OF the low cost COM
panies included in the average made
over 200 per cent
Numerous subtsrfuges were resort
ed to by concerns coming under the
ban OF Government price fixing In
many cases the companies sought to
evade the law by account Juggling.
the report said. Some padded costs
by heavily increasing officers Sala-
ries. One concern was found to have
charged to expenses nearly $4,000 900
paid in salaries and commissions Sew
oral sngIe TENS ishoved paymentS-0f
more than S1J00O0.
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