The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-05-22
Unions Make Inquiry Into
Profiteerinp.

8 ~
prepared an analysts NJ the relation
between wages and the increased cos
OF living and submitted II 10 IN,
United States railroad labor board
with the contention that a. profiteernl
is a fundamental cause of high prices
OF practically all commodities, and e.
increased wages to labor are in n,
way responsible for the increased
prices.
The statement is exhaustive and rep.
resents research work Of a high order
Of Intelligence, and whether one agree,
with all the statements made or not
one thing is apparent. and that is, many
abuses are being tolerated for the beno-
ut OF the few at the expense OF the
public generally,
Contrasting the profits Of a number
of corporations with incomes in excess
of $l,o00,000 year, It is found that
the basic metal industries clothing,
food, fuel. light and housing, and mis-
cellaneous, have an annual average in
come of nearly $3.50 900 900, or nearly
"a per cent on their capital stock, or
three times the average for tho prewar
period. The annual profits OF these
corporations averaged approximately
$500. 100000 more per year from 1915
10 1918 than they averaged from 1912
to 1914.
The corporations upon which these
figures were based represent about one
sixth Of the total corporate income Of
the United States. II other corpora
tions did as well as those Of which
record is available, then the combined
corporations Of the country earned ap-
proximately 1850, 900 900 more per year
during the thrse war years than during
the three preceding years,
A profit of $500, 900 900 per year means
$40 for every family OF five through
out the nation, The total of $4,000, 0OO-
900 means an involuntary contribution
OF s2t0 a year for every family of
five.
Consider" says the report, tina;
each family of five paid as toll, not
TO so-caled legitimate profits. but to
excess of war profits over prewsr prof
its, $40 a year, and one gains an idea
meant TO the country"
But these stupcndous figures do not
tell tho whole story. The superficial
examination showed that during late
years the companies resorted to numor-
Gus devices for concoalng profits. En-
cessive deductions were made for de-
pletion and depreciation, as shown in
the copper and coal Industries.
In other industries huge sums were
sums out of all proportion to the ne
cessity of the case. Payment Of cN-
cessive salaries TO officials is another |
favorite method. The federal trade |
commission found the American Metal |
company was paying salaries as high |
as s364,oOO year.
An investigation of food profits |
showed that the war profits were prac-
tlcally three times as great as those |
of the prewar period, with figures at |
hand to show further that the profit |
per pound on sugar was practically |
three times as large in the years 1916
1918 as 1t was in the prewar years.
The packers profits increased be-
tween 500 and 400 per cent, and four |
packing concerns In l9l5-l9l7 earned |
$l4O, O0O. 900 Labor was an incouse-
quential, item. An increase OF 100 per |
cent IN wages would not have added 8 |
per cent to the total cost. The increase |
in price between 1914 and l9lS was |
eight times the total labor cost and the |
price in 1915 represented % times the |
total labor item.
As for clothing it is claimed that |
profits absorb one half the retail price. |
Eight textile concerns showed an IN
crease in profits over the prewar years !
from t3,7a42l5 to S2-65o,562.
on the ever-absorbtnE subject N |
shoes the report has this to say. AZ |
each stage from packer to tanner, To |
manufacturer, to Wholesaler or rcRh'r |
an Increased profit was cNactcd until !
in 1918 the shoe bought by the con.
sumner was actually worth litto more
than two-nfths Of the price he was
forced to pay"
Data secured from the treasury dc
partment relating to the subject OF fuel
show ed that out OF 522 h,tumnous GOAL
companies 334 showed net profits, after
every possible deduction. OF over ~
per cent; 2ls, or over onc-haf showed
earnings Of over 80 per cent on capital
stock; while IFS, or nearly cnc-imrd.
showed net profits OF over loo pcr
cent.
Concerning iron, steel and copper II
is sufficient to say that tho lnNcsuga-