The herald-advance. (Milbank, S.D.) 1890-1922, 1920-05-28

y St =
FOR high cost Of living" read
"pillage of the people," The phrase
is Senator Capper's, and it ex-
presses q conclusion which ap-
pears to be inevitable, unless his
Extraordinarily impressive ar
raingment Of p~rofiteering is refut-
ed; and that it will be or can be
refuted we have little expectation.
Indeed, his statements are so de-
finite and explicit, and are based
upon data so authoritative, that
any attempt at denial would seem
to be futile. Making all due allow
ance for circumstances which
cause some legitimate increases of
profits, the enormous growth of
gains which corporations them
selves admit, is scracely applicable
on any other ground than that of
arrogant extortion
Thus Senator Capper cited one
great cotton mill whose net pro-
fits in 1918 were thirteen times
greater than in the four years end
ing with 1916, and in 1919 were
seven times greater than in 1917.
Now, a very large increase in gross
receipts might well be justified on
the ground Of increased expenses
for material, labor and taxes.
But these were increases in net
profits, over and above all costs.
Two other cotton mills were cited,
which had recently declared divi-
dends of 100 and 800 per cent re-
spectively. If the profits of the
first named in 1919 were not excess
sive, are we to understand that the
concern was run at a ruinous loss
in 1917 when they were only one
seventh as much? When a corpo-
is making 800 per cent pro-
fit, is it not stulifying to pretend
that it cannot afford to sell its
goods at lower prices?
The cost of shoes has become al
most prohibitive, and there are
threats that it will 60 still higher.
VIGOROUSLY, that is not because
Of any scarcity of hides or Of ris-
ing prices for them, for they have
been plentiful, and their prices
have been falling. Senator Cap
per pointed out a more plausible
One of the chief hide and
leather concerns paid in 1919 d.
vidends thirty-five times as great
as in 1915. Another increased it's
net profits in 1919 by 1O3 per cent
above those of 1918, and increased
its accumulated surplus from less
than eight millions in 1914 to more
than thirty million in 1919. One
Of the largest shoe manufacturing
concerns increased it's profits
from . little over two millions in
1915 to nearly ten millions in 1919.
No wonder that the retail price of
footwear has trebled or quadrup-
ledl
So it runs through the whole list
Cotton goods, wooden goods, oil,
rubber, leather, coal, ice, sugar,
bread, bananas, hardware, paper,
tobacco, automobiles-"The trail
Of the serpant is over them ALL
The reports of the corporations
themselves indicate it. They even
boast Of it. Senator Capper quot
ed q letter which he had received
from an officer of a tin-plate and
steel concern, offering to sell him
some of its stock and recommend
ing it as q desirable investment on
the grounds that q similar concern
had last year made n per cent
profit, that the holders Of its co,l-
mon stock had made q profit OF
more than 1000 per cent, that all
such concerns were making "enor.
nous fortunes" for their stock.
holders, their shares selling al
1900 per cent premium, and that
this particular corporation was
likely soon to increase its presen:
earnings by more than 300 pei
cent.
Senator Capper was speaking in
favor Of putting a heavy retroac-
tive tax upon these profitcers, with
which to pay o;liion or two dol
lars bonus to the soldiers of the
war. In that W. are unable t;
agree With him Bu. we ccnnot
see how any fair minded lnan car
help agreeing with him most EN-
phatically as to the iniquity Of
such profiteering and the desir'
ability-the necessity-of abatinl
It for the public good. It is sim
ply Infamous that rapacious cor
porations should be permitted thu.
to opress and plumber the public
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