The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-05-07
PROFITS OF
CORPORATIONS
Lauck Tells Railroad Board That
Some are Making as High as
500 Per Cent Since
War.

lIUnited Press Leased Wire Service
WASHINGTON, May PROFITS of
practically all big corporations deal
| ing in food, clothing, fuel and basic
raw materials now are more than one
hundred per cent greater than before
! the war, w. Jett Lauck, former sec
rotary of the national war labor board,
told the railroad labor board today.
In support of his testimony, Lauck
| submitted United States treasury re
ports and published statements OF
groups of corporations showing aver
age net profits compared with capital
stock totals for the three year Per
iods l912-19i4 and 1916-1S1S.
Sugar profits, Lauck showed, in
creased generally 800 per cent; meat
packing profits between 800 and 400
per cent; clothing 500 pef cent; shoes
100 per cent, and coal 400 per cent
Profits of from % to 100 per cent
on capital invested were not uncom-
mon for hundreds Of corporations dur
ing the three war years, according to
Lauck's evidence. This would indi-
cate that many big corporations earn
eG enough during the war period to
entirely return their entire invest.
ment, he said.
Iauck appeared in behalf of rail
road workers asking the board TO ap-
prove their demands for wage IN
creases totaling approximately 81 &c.,
900 900 annually. He blamed advanc-
ing living costs almost entirely upon
prodteering.
Lauck called the boards attention
to public statements of 005 concerns
which showed a net earning OF 81
per cent on capital stock in 19l2l914
and 239 per cent in 1868. THESE
corporations include fifty-seven con-
Germs dealing in the basic raw ma
terials, steels, copper and manufac-
tured metal products; 20 dealing ID
food products, including meat pack
ing; - in clothing; Ga in fuel, light
and housing; and So dealing In mer-
camille goods and agricultural sup
plies.
The outstanding fact said Lauck,
lis that during the years 1868 these
corporations earned S1,2eo. 100000 a
year, or nearly "a per cent of their
capital stock This appears to be
nearly three times the average for the
pre-war years of 1924. They were
due in large measure to The fact that
these corporations took a large pro-
portion of every dollar spent by pur-
chaEer. .-a-. 4
If all corporations Gid as well as
the 205 cited, corporate profits WeTe
s4,80O 900 900 greater during the three
wal years than in the rre-war per-
iods, Lauck said #...s.
"A total of $4,000 600 900 a year."
he said, means $40 per family OF
FIVE throughout the nation Consider
that each family paid as a toll not 10
so-called legitimate profits, but to ex-
cess war profits over pre-War propts
$40 a year, and one gains an idea OF
the total burden which prohteerlng
n,eant to the country.
During the three years 1868, the
consumer has been paying the fooo
corporations whose reports are avail
able, over i've and one half times as
large profits as were CONSIDERED ac-
ceptable before the war.
The profits in pound OF sugar,
Lauck showed, was three times as
great during the war as before.
The high price Of sugar, he SAID,
was "the direct result of speculation.
The net profits of twelve refining and
producing companies as shown by
their reports totaled $11,000,00o dur
ing 1924 but rose to 1000, 900 dur
ing 1868, that is from 61a to 10
per cent ON capital stock.
-Four big meat packing houses
earned during the years 1857 to-
tai of s145, 900, 900. Such profits were
made despite enormous deductions
for excessive salaries, advertisements
and overhead charges. Altogether in
.191218 these concerns took one quar-
ter of a billion dollars in profits or
nearly double the pre-war value OF
their stock"
Lauck also submitted treasury data
to show that Of 1872 bituminous coal
companies reporting, 334 showed net
profits of 20 per cent after every pos
sible deduction; 218 over so per cent
'on capital stock: while 11S earned
net profits of over 100 per cent.