Evening star., 1918-08-17
Largest Profits in Food, Cot
ton and WooIens, Mine
and Metal Products.
SOME SMALL CONCERNS
MADE 5000 PER CENT
Meat Packers, Flour Millers and
Gamers Apparently Lead List of
Profteering in Food Articles.

War ,prOfteerS IN lSlI were most
numerous in businesses devoted to
food production and distribution. cot
ton and wooden manufacturing and
dealing. coal mining, iron, copper,
aluminium and other metal production,
and oil production and distribution,
according to a Treasury analysis of
income tax returns.
In addition, thousands of small con-
Germs in a great variety OF industriai
and commercial classifications MADE
profits ranging from 100 to 5000 per
cent above their normal prohts Tor
pre-war years. which even then were
considered high.
Got Help From Income Tax Reports
Detailed information showing the
exact extent of war profiteering has
been given Congress recently in COM
pliance with a resolution requesting
il The Federal Trade Commission is
understood to have obtained consld-
erabIe information from income re-
ports as the basis for its criticism OF
the meat packing industry.
In citing certain industry or com
merce classifications as containing the
largest percentage of profiteers. the
Treasury has made it clear that not
all individual businesses in these
groups have gathered In swoilen
earnings. This is true particularly OF
coal operators, some of whom made
enormous profits, often several hun
dred per cent higher than good earn
ings of former years. while others
made barely enough to pay 1ustined
dividends.
Big Profits in Clothing and Shoes.
With few exceptions. manufacturers
of clothing and shoes reported big
profits. This was true of most con-
Germs holding government contracts.
many of which were let early in the
war, when the government felt com
hpel1ed to stimulate productton.-a -at Inc
vast quanfifies Of supplies needed.
Scores of income reports from suit.
facturers showed earnings up to ioo
per cent of invested capital.
Lumber production, stimulated oy
the sudden enormous demand from
cantonments and other government
operations, netted forest and saw mill
owners. as well as distributors. prof
it's several times above those of nor
NAL years.
oil producers made enormous prof
its, which they claimed were 1ustined
by theCrapid depreciation OF proper
ties and the extra financial hazard of
their business.
Despite high cost of labor and other
factors entering into mining, the
Treasury analysis shows that rev
iron, copper or aluminium mines failed
to make tremendous profits for their
owners under the government policy
of stimulating production. Producers
of silver. gold, platinum and other
precious metals profted to a large
extent.
featuring was highly profitable, al
though income returns show that
earnings of different plants were far
from uniform, some making as high
as so per cent on investments and
others less than 10 per cent.
Stood at Top Of Food List.
Meat packers. -four millers and can
ners apparently stood at the top OF
the list of food profiteers. according
to income return. Farmers also made
money heavily last year. but not
enough of their returns have been an
alyzed to justify general statement
of their profits, officials say.
Prof1teerinG was by no means con.
fined to big business interests. Small
scale producers in thousands of cases
reported profits equal to the aggre-
gate of from five to ten years earn
ings before the United States entered
the war.
More than 800 clerks of the internal
revenue bureau have been employed
in tabulating income returns for the
last six weeks and transmitting these
in weekly or bi-weekly installments
to the Senate, where the reports now
are being prepared for examination
by the Senate finance COR mftfee fr
! connection with its consideration OF
| the new revenue bill.
| Names of Individual companies are
not reported. Since these by law must
be considered confidential unless the
President specifically authorizes pub.
| lication or tax returns.
Ten months ago the principal &C.
tivity of the bureau of Investigation
of the Department of Justice was run.
ming down enemy agents. Today, rec.
ords show. German propaganda and
sabotage have decreased to almos,
nothing, but the secret agents work
in gathering evidence against wal
profiteers who are American citizens
has increased manifold.