The labor world. [volume] (Duluth, Minn.) 1896-current, 1920-05-22


for the same year showed earnings
Of 27.28 on their capital stock; 1884
per cent on their capital actually in
actual invested capital after deduction
of taxes.
- Enormous Earnings. ....,.
2,>''1t is worth noting" said Mr..
. Eauck, that these producers showed
such amazing earnings when the
wholesale price Of sugar was II cents
per pound and their margin ranged
from 0.9 of 1 cent to 30 cents per
pound. What must be their earnings
today with the price to tho consumer
hoYering about rs cents a pound!"
Selecting group of ~ of the
largest sugar producers, Mr.. Lauck
showed that the average net income
for the pre-war period of 1912-l4
Twas 11,306,923, or a return of about
tSSh per cent on their claimed cap-
y Sitalization.
I'm 1915, when the pinch of war
offered greater opportunity for profit
eering in Europe and America, the
net income Of these IL companies"
said Mr.. Lauck, had risen to
324,549,547. Finally for the years
1s16-18, the average profits of the
group had risen to $34,174,794,. a re-
turn of 19' per cent on the claimed
capitalization. This means that profits
were approximately three times the
pre-war figure.
Wages Only Two Per Cent.
'"The usual contention that the in
creased profits Of war years were due
- ofov> rr41,,Nfiav1 ic ,es,,
disproved, for the actual production
Of these companies was less during
: the war than in preceding years. The
net income expressed per pound was
th1rty-four one-hundredths of pound
in 1914, sixty-three one-hundredths Of
a pound in 1915, and more than 1
cent pound in 1915 and 1917. This
figure seems small, but each cent a
pound marks difference of $7O,-
100000 to the consuming public"
%E Mr.. Lauck exculpates labor in the
sugar industry for the phenomenal
rise In prices, pointing out that the
: labor cost of producing pound of
J sugar advanced from 1913 to 1917
only cents, or only Is per cent Of
1.-THE general price advance to the con-
sumner.
Had the producer and the re-
taller" said Mr.. Lauck, "been satis-
lied to take the same proportionate
Increase in their margins as labor
received in its share, sugar could be
Jold to the consumer at liz cents a
pound instead Of for 20 cents.
a. 1 Took Advantage of War.
: :, &: "AFatudy of the financial returns
OF the sugar corporations merely
serves to confirm the conclusion that
they took advantage Of the war sit
uation to increase the proportion of
the price taken by themselves as
profits, and to decrease the proper
tton taken by labor as wages"
"A table was presented the board
showing the. vast increase in profits
taken by the leading sugar producers.
The average net income of, the Amer
ican Sugar & Refining company in
creased from the 1924 to the 1916
- period from $3,s1s,666 to $s.s22.-
3AS; the Oahu Sugar company from
$677.79s to $1,6s5.921: the Pioneer
Mil company from $570,419, to
$1,355,653; the Utah-Idaho Sugar
Company from $955,977 to $3;775,722;
the Waiahua Agricultural company
{ from .$528.746 to $1,326,92S; the
American Beet Sugar company from
$905,s2S to $3,072,96s; the Hawaiian
j Commercial & Sugar company from
$1,467,794 to- $2,566,S7O; the EVA
plantation company from $463,427 te
$1,633,672; the South Porto Rice
4. TURN TO NEXT PACE.