The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-05-07
LABOR BOARD Is
PRESENTED. as.E;DY
IN PRly;y<yz,iR
W. J. LauCk< ? ares Profi-
teering in Industry Funda-
mental Cause Of High Prices
of All Commodities.

WASHINGTON. May "A study of
proilteerine in American industry made
uhuer the auspices Of the railway broth
erhoods, was presented to the railroad
labor board today in support of the
railway workers demands for higher
wages and to refute the charge that in
creased labor costs are responsible for
the high cost of living
; Prepared by w. J. Lauck, former
secretary of the war labor board the
study seeks to show that profiteering
IN industry is the fundamental cause
Tor nigh prices in practically all COM
Iloulles. II gives many statistics to
support that contention.
Calling attention to the many war
made millionaires, the study contends
that a three fold relationship exists
between high prices, profteering and
the addition to the quota of million
aires, and that the increase in the
wealth of the wealthy is an "unanswer-
charge labor with profiteering and to
an attempts to hold labor responsible
Tor the high cost of living.
or the extraordinary increase in the
price of sugar now amounting to 300
per cent, the study says the increase
IN labor cost paid by the consumer was
less than 10 per cent. The result of
advanced prices, according to the
quoted reports of IL companies pro-
Gucing over half of the sugar consumed
in the United States was pictured in
the net profits of these concerns which
II was said rose from an average Of
$ll,00O 900 during the years 1912-19l4
to S34, 900 600 for the years 1916-191S
In the meat packing industry where
profits were said to have increased be-
tween 800 and 400 per cent the labor
item was shown so small that a wage
increase of 100 per cent would add less
than per cent to the total cost of
the meat The increase in the price
between 1914 and 1918 was shown as
eight times the total labor cost, and
the 1918 price represented IS times the
total labor item.
Profits absorb approximately one half
the retail price Of certain kinds of
cloth, the report declared, white the
labor item amounts to from one-four-
teenth to ne-twentieth of the price.
Simhlar relations were pictured in the
manufacture of mems garments.
Shoes, according to the study. fur
nished a splendid opportunity for the
profiteer." The profit items in 1914 it
was charged, absorbed nearly one-half
the price paid by the consumer or
nearly three times the total labor cost.
while in 1917 the profit items amounted
to approximately three-fifths of the
total price and over five times the
total labor cost
Increases in the retail price of
bituminouS coal were shown at four
tlIneS lhe increase IN LABOR costs While
the proportion of the proceeds Of the
industry received by the coal operators
was shown as increased from 75 to 400
per cent
Profiteerng did not stop with the
armistice, the report declared, present
ing igures to show that corporation
profits IN 1919 were ll0 per cent over
the prewar average. which means, the
study added that 1919 profits were
more than double the average for the
years 1912-19l4.
An average of 81 200 per family of
five during the years 19l6-l9lS We're de %
clared to probably be conservative es-
innate of the actual cost of corporate
profiteering to the consumer.