The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1918-07-04
Trade Relations Commission, In
Report to Congress, Scores
Packers AS Worst of All
Wartime Profiteers.
OTHERS EQUALLY GUILTY
Facts Upon Which New Legis.
lation Will Be Based, Reveal.
How Big Concerns Have
Mulcted Public.
BY United Press.

pIolilS. fTOLlteerlng exlStS--SOme or
It due to inordinate greed, some to
"barc faced fraud" and some to adj
vantages taken of wartime needs for
production.
The fedora. trade commission so re-
ported to the Senate today, showing
among other astounding figures that
four of the five big packers reaped a
$l4O,000,000 profit in the war years
1915-1917, of which 1921 900 900 repre-
sented an excess over pre-war profits.
The packers, particularly came in
Tor heavy scoring, but other lines, in
cluding~flour milling n basic indus
tries We're shown to be realizing vast
sums above peace time profits.
However delicate q definition. is.
framed for 'profiteering.'" said the re-
port, these packers have preyed upon
n people unconscionably."
New Regulations Forecast.
Trey are soon to come under further
governmental regulations approved by
executive order"
The report, intended as an exhibit
Whereon the Senate could base new
legislation, showed among other things
that government fiXation of prices on
some basic industries had an evil
tendency in that it gave a great adj
vantage to low cost concerns.
The commission has reason to know
that profiteering exists" said the re-
port. Much of it is due to advantages
taken of the necessities of the times as
evidenced in the war pressure for
heavy production. Some OF it is attrib-
utable to inordinate greed and bare
faced fraud"
Packers Profits Laraa.
Armour Swift, Morris and CHaahy
were designated as the leaders in meat
profits. The Wilson company's profits
We're large, but not comparable to those
of the remainder of the big five.
The profits of Morris & Co. for tbs
fiscal year ending November, 1917, are
equal~to he net worth of the company
Capital and surplus) and 1851 per
cent on the 100000 capital stock out
Standing. In the cases Of the other
four companies the earned rate is from
q to al per cent.
NO less astonishing are the revela-
tons concerning some steel mills il,
class three-those which start Will,
furnaces-and who recently complained
that government prices were too low
for them. It was found that in one In
stance 1897 per cent profit had been
made, while many others averaged over
100 per cent.
u. S. Steei's Earnings.
In the period prior to the govern
n1ent's price fixing abnormal profit was
made by the United States Steel cor
poration, whose profits rose from 2.S
per cent in 1914 to 24.9 per cent in
1917.
The yet income OF tbs corporation for
l911 after ~deducting federal income
and excess profits taxes. vas S244,TSS,-
90S, of which about one-tenth was ap-
plicable for dividends and surplus as
compared with 4 $500 o7 in 1914.
The copper industry more than
doubled its average earnings. Twenty
one companies made profits In 1917
which ranged from l to lO1 per cent on
their investments. The average profit
was over S4.4 per cent as compared
with Ill per cent in 1913, a normal
year. These increases were partly due
TO the heavy war demands.
Zinc Companies O.. X.
NO unucual profits were found ~ :he
commission in the zinc industry with
the exception OF the New Jersey Zinc
company. Basing percentage OF the
capital stock issued Of S35 900, 900, his
concern made So per cent profit in 1917,
and paid a dividend of 46 per cent. The
large profits of this concern are ex-
planned by the possession of an ore
body of unusual purity and richness.
The International Nickel company
made profits i'll 1916 of $13,557 ,O0G, 40
per cent.
largely to increased output, rather than
advanced prices. The commission was
not inclined to blame them for prof
ite>,ing.
Information of ti.s commission does
not indicate excessive profits on lum-
Der on the western coast.
Forty-eight southern pine producers
a an average profit on the net in
YES = ell in 1917 of II per cent as COM
pared with So per cent in 1915.
Profiteering in Coal.
Margins OF the coal industry il r.Hr%
cases We're two or ire times normal.
Twcnty-three bituminous mines in cen
frdi ID~annSN1V3 ni.. a vera DpI a nHr2ln
o. 80 cents Il ton in 1917 as compared
with 20 cents in 1916. M highest
margin of any of these companies was
81 IS as compared with Al cents in
1916,
Out II 1e6 refining companies -
~estigated, the first quarter Of 1918
shows 81 average profit OF about y per
cent. The average pre-war profit was
about 15 per cent.
leather industry profits Increased
as high as five times over those Of
pTe-war years.
The flour m;ilers nave had unusGa!
profits and their average earnings are
said to be SIS per cent Of the invest
mant.
The ayersge net profit of iobbers
for 1913 and 1914 is said to have beer,
about Is cents per barrel, but increased
10 nearly so cents IN 1917.
Milk Concerns Fatten.
Survey of the leading canned :ailk
companies show nat practically every
Increase Or decline was inaugtrated
by either the Border Condensed Milk
company or the Eeivstia Milk Con-
deiising company. In 1917. according
20 lie statenien. of the company, Her
ye'ia made over &c per cent On cost
ar e. per CEN on Investment. The
Bords. made approximately LIZ per
eel on cost, considered relatively
high
Salmon auner profits were APP
n~,oxirnateiy SIS per cent on The net
Investment. Tiki average does not
reveal that some Of tho los cost conn
paf,ies included IN shs avers=s nad.
ovst 2eo pes ccat