The Washington herald., 1920-05-25
PROFITS JUSTIFIED. CoRBY
TELLS SENATE COMMITTEE

Although he admitted a material
increase in profits during the past
year, Charles I. Corby, president of
the Corby Baking Company and the
Havenner Baking Company, assert
ed before the Senate District Com
mittee yesterday that the recent
Increase in the price Of bread in
the District of Columbia was entire
ly jus.fied, ard represented only a
fair rate OF return on the baking
industry.
Profits for 1919 of the Corby Bak-
ing Company, he said, were $19l.3g2,
as compared with $1SO,O49.5S in
1915. The profits of the Havenner
Company he estimated at $33,432 for
1919. as compared with S19,345 in
1918. Corby asserted that profits
on broad could only be estimated
in percentages on each dollars
worth sold. Thus reckored, he as
serted, the rate of return had de-
clined from 11.45 per cent in 1914
to 81 per cent in 1890. This, he
said. was due to the increased cost
Of labor and materials. The in
crease, he claimed. was not grant
ed until a full investigation had
been made by government officials.
The cost of flour alone, said
Corby, on January 5. 1920, was 43
per cent of the. price received for
the bread. as compared with 80 per
cent on January s. 1919. Cost of
ingredients, he claimed, had in
creased from 81 per cent on jan
uary 6, 1919, to so per cent on jan
uary 5, 1920. Total expenses, in
cluding labor. on January 5, 1920,
was estimated at 9S per cent of the
price received for bread, as COM
pared with IS per cent at the begin
ming of 1919.
Corby asserted that the wage of
bakers was increased in May. 1919,
to S5.12 for day work and $500 for
night work. and in May of 1920 to
$500 a day for day work and $3.50
for night work. He said that the
same scale of wages were paid by
all baking concerns. There are
ninety-three distributing wagons.
he said, and the drivers act. as sales
agents, receiving commissions of 10
per cent on sales. In turn, he saId,
retailers pay Is per cent commission
to their statesmen.
Labor Price Fixed by Unions.
The price of bread after IL left
the hands of bakers. Corby declared.
was fixed by labor organizations
and retailers. and the bakers had
nothing to do with fixing retail
prices.
Corby testified that he received
salary of $25.00O as president of the
Corby Company. and that this had
been his salary since the company
was Incorporated in 1914. The vice
president receives a salary of $500
and the, secretary a salary of $4,000.
Total profits, he declared, had been
constantly declining. having been 2
per cent January 5. 1920, as COM
pared with 12 per cent on January
o, 1918. The company pays for flour
at present, he said, $13.S3, which is
an increase Of 215 per cent over
1914. The profit on an Sh-cent loaf
OF bread on May II. 1920. he claim
ed, was only 31-100 of 1 per cent.
Corby disclosed that his total in
Vestment in the baking business
was $l,5o0.0O0. and that the volume
or his business was increasing, but
would probably decrease during the
summer months.
Under questions from Senator's
Coroy defended the fair price COM
mlttee, saying that 1t was COM
posed Tor the most part of repre-
sentative and intelligent business
men; He denied that there was any
comolnation to control the baking
INDUSTRY In the District of Column
Testimony regarding the Haven
neI company was given by II. T.
Peters,l auditor of the companv us
sald that Corby's salary as nresi.
.ens ~ on the Hayenner Company was
so.SVv ano that OF the vice president