The toiler. [volume] (Cleveland, Ohio) 1919-1922, 1920-06-04
War Profits of American Profiteers

if they were obliged make truthful and accurate
statement of such profits and if these reports were
made public by the commission it would result in
a great increase in the taxes which the companies
would have pay IN South America, and further that
l. would reveal unrepOrted income amounting 10
millions which Armour & Company would have to
ray income and excess profits taxes here. Commits
soner Fort Indignantly spurned this attempt to use
him as o tool of Armour & Company, and ordered the
lawyer to leave his office The facts were reported
to the Treasury Department, but far as L have
been able 10 ascertain successful attempt has yet
been made to punish j. Ogden Armour any other
official of Armour Company for this confessed
attempt to defraud the United States Treasury of
taxes for this barefaced effort to induce govern
nent officials to defeat the ends of justice. written
statement signed by Governor Fort detailing every
circumstance of this transaction is file with tine
Senate Committee Agriculture where it is effect
-vely buried under wagonoad of documents obtained
frcm the Federal Trade Commission at the same time
which serve effectively to conceal it from the
knowledge of tie public.
The Treasury Department reports give the re.
turns Of As wOolen and worsted mills, of which
earned l770 per cent its capital stock Out of the
fortyfive seventeen reported profits of more than
100 per cent on their capital stock Among the wooen
mills we also have similar to that of the meat
lackers, of ccncealment of income from the eyes of
the public. On page $50 of the Treasury report is
81 own the income of woolen company capitalized at
StO,OOO,OOO So far as have been able to ascertain
States capitalized at that amonnt-the American
Wooen Company. The Treasury Departments report
shows that III 1917 this xty-mion dollar wooen
company reported net income of $2s,56O,342 The
annual report of the American Woolen Company for
1917 shows net income before taxes were deducted
OF only $l3,SS3,155. Ii this sxty,mion dollar wooden
company is in fact the American Wooden Company
and tic evidence seems to be concusive-it is clear
that the American WOolen Company in 1917 concealed
from its stockholders and from the public profits of
Eeary $l5,0O0OOO. In other words TIE actual profits
ct the American Woolen Company in 1917 apnear
from this comparison to have been more than twice
as great as the company acknowledged in its an.
nnal report and in its statements to- the American
Woolen Company have every reason to demand an
accounting from the officers of that corporation to
ascertain whether not $l5,000000 of profits were
tctualy concealed, these facts seem to indicate
and If so what disposition was made of that enor.
nous of money
it must not be imagined that manufacturers were
the only ones who reaped enormous profits while
Tne nation was at war The report of the Treasury
department shows 206S clothing and dry goods stores
one of which earned 9S2G per cent on its cant,j
STOCK and nearly 10 per cent of the entire number
earned more than 100 per cent on their capta stock
Cat OF 3l3 department stores earned 757 per cent
on Its capital stock and 26 earned more than 100 per
cent There 57 furniture stores reported of which
seventyoight, or nearly Is percent earned 7S1 Ter
cent We nave heard a great deal about the hioh
cost of building in the last few years In nearly every
ease attempt is made to attribute the high cost
to the wages paid building labor, but this report
shows that out of 500 contractors and construction
companies, l54, or more than Is per cent, earned
profits of over 100 per cent on their capital stock
and one of them earned 1890 per cent or nearly
fourteen times its capital in single year
War Profits Equal Capital Stock
In a recent speech before the Senate Senator
Oapper OF Kansas made the statement that during
ire war tie American people paid for the coal mines
the steel mills the textile factories and every other
essential branch of Industry Senator Capper did not
give the facts upon which his statement rested and
doubt II ne knew how literally true that sensational
statement was, hut the fact is-and this report of
tne treasury Department proves it beyond any doubt
'nat the American people during the war did pay
n net profits for the entire capital stock of the cor
poratonS in the essential lines of industry and trade
In other words, it is clear that if the national
government at the beginning of the war had taken
over the essential lines of industry and the American
people bad been required to nav the prices yybicn
F'ivate manufacturers and merchants have cbaraeS
hem, therc would have been sufficient profit to nav
lor every dollar worth of capital stock and leave the
nation today IN possession and control of practically
al Its manufacturing plants
III thls had been done, and the manufacturinc
cfflclas and employees lad performed their duties
as effcenty for the government as for the private
corporatlons-and every citizen has right TO assume
hat neither he manufacturing officials nor the othcr
employees would deliberately sabotage their govern.
ment-wc should have TODAY instead Of debt ~
S2o,OOO,OO000O large part of which went 70 nav
lot the products of these industries debt of only
lhe ollhons necessary TO the expenses of orr
government the pay of our soldiers and the loans 10
our ailes In addition we should have vested in the
eueral government The ownership of billions of dol
ars worth OF manufacturing and commercial proportv
lEls opportunity now seems to be lost but The
picture OF American profiteering revealed by this
oticla document of the Treasury Department should
"e lndehbly fixed in the mind of every American
citizen