The Washington herald., 1918-06-30
PACKERS HIGH
PROFITS Barred
IN HOT WORDS
Federal Trade Commission
Gives Startling Facts
on War Trade.
GREED In MANY LINES
Stocks Watered to Meet
Plans Of Government
to Tax Profits.
GREED In MANY LINES

Recommendation for more effective
criminal statutes and o taxation pro-
gram that will get the dollars of the
profiteers are contained In q sensa-
tional report on profteering to the
Senate yesterday by the Federal
Trade Commission.
The Commission" II says. "has
reason to know that profiteering ex-
lists. Much of II Is due to advantages
taken of the necessities of the times.
as evidenced in the war pressure for
heavy production. Some OF II IL at
tributed to inordinate greed and bare
faced fraud"
In the latter category II lists the
Chicago meat packers and the flour
trade. The report shows that Armour,
Swift, Morris and Cudahy earned an
average aggregate Of s10.00o.000 in the
pre-war period OF 1912, 13 and II
while in 1915. '16 and II they pocketed
a total OF $4,000, 900. ...
It also shows how representatives
Of the packers, aware OF the govern
ments intention to limit profits on
subsidiary interests, took steps to re-
appraise their properties and water
stocks in these interests, in order that
their remuneration would remain at
exorbitant heights ..
+ Prices Keep Climbing.
The report deals with profits Of
steel, copper, zinc. nickel, sulphur,
lumber. coal petroleum and its allied
products leather and canned goods, in
addition to the voluminous informa-
ton regarding meats and -four. In
every instance prices have gone up,
up, up" with the consumer footing
the bill, as usual.
In closing the report the commits
sion says: "All of which is in sup
port Of the statement Of the Presi-
dent when in his address to a joint
session of Congress on May 81,
1918, he said:
"The profiteering that cannot be
got at by the restraints Of con-
science and love of country can be
got at by taxation. There 10 such
profiteering now, and the informa-
tion with regard to 1t is available
and fndisputable.'
One Eliminating feature OF pack
ers' precaution" is shown in q let
ter written by Louis F. Swift to his
brother, Edward f.. Swift. Louis
informed his brother that he had
learned the government intended to
extend profit control 70 the leather
industry, and he suggested the ad-
Visibility of reappraising their prop
critics in certain companies. This is
the reply of Edward:
Il approve. IL done quietly and
promptly"
High Figures In Steel.
The report also takes a whack
at certain features of the govern
ment's price fixing policies. With
regard to steel. it says that while
the market was prevented from
running away" by price fixing. still
the stronger factors in the industry
were enriched by profits which are
without precedent.
In this connection II shows that
the net income 90 the United States
Steel Corpor~ al in 1912 was $77,-
075,217 while in 1917 it reached the
unheard-of figure of $47S.204.343.
The same is true. the report says.
with regard to the flour trade. For
the years 1913-14-15 and '16, the
millers earned IL per cent on their
investment as compared to 3s per
cent for the year ending June 80,
1917.
The experience (price fixing)
with steel, flour and coal shows,
says the report. that a high stimu-
lating fixed price. while stabilizing
CONTINUED ON PAGE FOUR.