Evening journal., 1918-06-29
TRADE BOARD finds
SOME PR0F.TEER|HC
Commission Scores Packing
House for Excesses Over
Pre-War Earnings
MlLLERS ALSO
EARN VAST SUMS
By the United Press.

/ WASHINGTON, juno 29.-Some
American business is sorging in war
profits. Profteering exists-some Of it
due to "lnordinate greed" others to
fraud, and yet others TO advantages
taken Of war time needs for produc-
/ tion.
The Federal trade commission so re-
/ ported 20 the Senate today, showing,
among other astounding figures, that
four Of the big five packers reaped a
/ siA0,000,000 proflt In the war years 1915,
/ 1911, OF which si2i 100000 represented
an excess over pre-war profits.
The packers, particularly came in
| for heavy scoring, but other lines, in
/ cludlng flour milling and basic Indus
/ tries, were shown to be realizing vast
sums above peace time profits.
The report intended as an exhibit
whereon the Senate could base new
| legislation, showed, among other
| things. that government ilxation OF
prices on some basic Industries had
had an evil tendency in that II gave a
! great advantage TO low cost concerns.
The commission has reason TO know
| that profteering exists" said the mes
sage Much OF II is due 10 advantages
taken OF the necessity OF times as EVIL
denced In the war pressure for heavy
production. Some OF II Is attributable
TO inordinate greed and bare faced
/ fraud"
The profits OF Morris & Co. meat pack
ers, for the fiscal year ending Noyem-
Der 30, 1917, Is equal 10 the net worth
Of the company capital and surplus,
and 263.7 per cent. on the s3,0O000O capi-
! iRl stock outstanding. in the cases OF
/ the other four companies, the earned
rate Is from 27 TO AZ pee cent.
| No less astonishing are the revelations
concerning some steel mills In Glass 3
those which start with furnaces and
who recently complained that govern
ment prices were too low for them. II
was found that in one instance 3i9.6I
per cent. profit had been made while
many others average over 100 per cent.
In the period prior TO the governments
price fixing. abnormal profit was made
| by the United states Steel Corporation,
whose profits went from % per cent.
In 1914 TO 2i.9 per cent. In 1917.
The income Of the corporation for
! 1917, after deducting Federal income
and excess profits was s94.47s, ,9Os. OF
which about One-tenth was applicable
! for dividends and surplus as compared
with $50, ,507 in 1914.
The copper industry more thar
doubled its average earnings. Twenty.
one companies made pronts IN 1911
which ranged from 1 20 i07 per cent
on their Investments. The average
profit was over Pa per cent. as COM
pared with H. per cent in 1913, {
| normsl year. These increases were
partly due 10 the heavy war demand.
No unusual profits were found by
the commission In the zinc industry
with the exception OF the New Jersey
Zinc Company. Baslng percentage on
! the capital stock issue OF s33O00O0O
this concern made 56 per cent. profit In
1917 and paid a dividend Of as per cent
| The large profits OF this concern are
explained by the possession Of an ore
body OF unusual purity.
The international Nickel Company
made profits in 1916 OF si3,5o7OO0, forty
per cent.
The increased profits here are due
largely to increased output rather than
advanced prices. The commission was
not inclined 10 blame them for profit
! eerlng.
Information OF the commission does
not indicate excessive phoflts on lum-
/ Der on the western coast.
/ Forty-eight Southern pine producers
made an average profit on the net in
vestment IN 1917 OF ~ per cent, as COM
pared with 50 per cent. In 1915.
Margins OF the coal industry In many
cases were two or three times normal
Twenty-three bltumlnous mines In cen
! tral Pennsylvania averaged a margin OF
90 cents a ton in 1917, az compared with
90 cents IN 1915. The highest margin OF
any Of these companies was si.so, as
compared with 4i cents In 1916.
Out OF iO6 refining companies lnvesti-
gated the first quarter OF 1918 shows an
average profit Of about PIG per cent The
average pre-war proft was about Is per
cent
Leather industry profits increased as
hleh as nve times over those OF pre-
war years.
The -four mlllers have had unusual
profits and their average earnings are
said 10 be 3s per cent OF the investment
The average net profit OF jobbers FOR
1919 and 1914 Is said TO have been about
Is cents per barrel. but Increased "a
nearly 10 cents I'm 1917.
Survey OF the leading canned milh
companies show that practically every
Increase OF decline was inaugurated by
either the Borden Condensed Milh
Company or the Helvetla Milk Con
densing Company. In 1917. according
to the report, Helvetla made over 6'
per cent. on cost The Borden com
pany made approximately is per cent
on cost. considered relatively as high.
Numbers Of subterfuges were resortec
TO by concerns coming under the ban Of
government price fixing. In many cases
the companies sought TO evade the law
by accour.t Juggling, the report said
Some padded costs by heavy increases
in officers salaries, One concern wa'
found TO have charged TO expenses
nearly s2,OooOoo paid in salaries anC
commissions. Several single items
showed payments Of over sioO,OOO.