The Tomahawk., 1919-08-14
Chairman of War Labor Board
Predicts Hard Times From
Profiteering.
Wartime GRAB IS KEPT UP
Failure Of Government to Protect Llv-
ina Of the People viii Produce
Widespread strikes-Unemploy-.
ment and Lower Wages.

WASHINGTON, o. CA bitter In
dustriai controversy In America 10 the
forecast Of Basil N. Manly, labor
chairman Of the national war labor
board. Mr.. Manly has been serving In
this capacity since Frank Walsh re-
signed shortly after the arnistiee' was
signed. Hls prediction 10 based on
tho fact that prot'tssrins goes on 40
vlolousjy 40 during the war. He be-
lievss our relative lack Of industrial
troubles up to the present 10 due to
our shorter participation In the war
and 70 the fact that American labor
has not YET had time TO grasp the
meaning Of business changes which
have taken place.
A Study In Profits.
His message in part is as follows:
II have Just completed study of
the earnings Of 81 representative
American corporations, a record Of
whose profits is available for each
year from 1911 through 1918. This is
not a hist selected either because the
profits were large or because the
profits were small. It is list Of all
the corporations whose earnings COW
ering this entire period were avail
able to me. A compilation of these fig-
ures shows that the same 81 corpora
tions which, In the pre-war years, had
an average net income of 1926 900
had net incomes in 1916 amounting to
more than . billion dollars, in 1917 to
$975, ,0o0, 900 and in 1918 to $736,0o0,-
600. This is after the deduction of
every conceivable charge which those
companies could devise for reducing
and concealing their apparent profits.
II am convinced a. q result Of my
study that the actual profits even
after the payment Of taxes in 1917 and
1918 were Just ~ great AZ In 1916, the
difference being accounted for by. the
tact that in 1917 and 1918 these cor
porations set up all kinds Of exces-
sive reserves for depreciation, amorti-
zation and other unspeciied and fan
ciful contingencies for the purpose Of
evading taxation and concealing their
excessive earnings from the public and
the tax collector.
Their BIG Earnings.
But even taking the figures as they
stand We find that these 81 corpora
tions earned net 50 in 1916 and 1917
for every dollar which they earned in
the pre.war period and over 81 in 1913
for every dollar earned in the pre-war
period. This is pronteering with q
vengeance and the profiteers may well
tremble lest the people. may avenge
themselves for the shameless exploita-
ton during . period Of the nations
greatest necessity.
And yet, with the people and par
ticularly the workers in this state Of
exasperation % Q result Of their daily
struggle with an unjustly inflated cost
Of living, attempts are already being
made BY selfish and foolish employers
to reduce wages.
Democracy Wanted.
81 am making no threat that bolshev-
ism or spartacanism is about to sweep
the United States. The American
labor movement Will not go Bolshevik
unless 1t is driven to that course by the
zoading of selfish and unenlightened
capitalists and capitalistic agents.
Those who regard the American in
dustrial situation with complacency
ignore both the psychology of the
workers ard the compelling facts. The
workers of the allied world have been