The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1920-05-07
RAIL WAY BROTHERHOODS
PRESENT THE RAIL BOARD.
WITH CAREFULLY STUDIED.
P ROF|TEER|N { REPORT
BACK TO THE YEAR 1914.

Washington, May "A study OF
profiteering in American industry,
made under the auspices Of the rail.
way brotherhoods, was presented to
the railroad labor board today in sup.
port of the railway workers demands
for higher pay and to refute the
charge that Increased labor costs are
responsible for the high cost of liv.
ing.
Prepared by W. j. Lauck, former
secretary of the war labor board, the
study seeks to show that profiteering
in industrial productions in similar
relations were pictured in the manu-.
facture Of mems garments.
Shoes, according to the study, fur.
nished a splendid opportunity for the
profiteer." The profit items in 1914,
1t was charged, absorbed nearly one
half the price paid by the consumer,
or nearly three times the total labor
amounted to approximately three
fifths, of the total price and over five
times the total labor cost.
Increase in TIE retail price of b.
luminous coal we're shown Mt four
times the increase in labor costs while
the proportion Of the proceeds of the
industry received by the coal opera.
tor was shown as increased from rs
to 400 per cent.
profiteering did not stop with the
arrnistice the report declared present
ing figures to show that corporation
profits in 1919 were 10 per cent over
the pre-war average which means, the
study added, that 1919 profits were
more than double the average for the
years ls12-l914
An average OF $1,000 per family
of five during the years 19l6-l9ls,
was declared to be probably a high.
ly conservative estimate of the actual
cost Of corporate profiteering to the
consumer
Calling attention TO the many war
made millionaircs, the study contends
that a three-fold relationship between
"high prices, profiteering and the
addition to the quota of millionaires,"
and that the increase in the wealth
of the wealthy Is an 'unanswerable
refutation to all attempts to charge
labor with profiteering, and to all at.
tempts to hold labor responsible for
the high cost of living
For, if invested wealth gets a |
larger return" says the study "a
larger proportion of the national in.
come than formerly. the man who
gives personal service or labor is |
bound 10 get q smaller proportion. !
The menace OF the future lies in the |
that the vast profits which |
are still held in reserve will be capi. |
tali2ed under the pretext of fair re.
turn en- capital. those who own them
may continue the larger proportion |
of national income, even at the ex.
pense Of very great profits on the |
part of tho workers when the over.
of war has passed away"
The extraordinary price OF sugar |
now amounting TO 800 per cent the
study says, the increase in labor cost |
paid by the consumer was less than
Is per cent. The result OF advanced |
prices according to the quoted re.
ports Of - companies producing over
half of the sugar consumed in the |
United States was pictured in the !
net profits Of these concerns, which |
1t was said rose from an average Of
81 ,000,0 900 during the years 19l2-19l4 !
to S34000.000 for the years 1916.
1918.
In the meat packing industry where
rrofits were said to have increased |
between 300 and COO per cent, the
labor item was shown so small that
u wage increase Of 100 per cent would
add less than five per cent to the
total cost of the meat.
Tho increase in price between 1914
and 1918, was shown as eight times
the total labor cost and the 1918
price represented 25 times the total
labor item.
Profits absorb approximately one
half the retail price Of certain kinds
Of cloth, the report declared, while
the labor item amounts to from one.
fourteenth to ope.twentieth Of the
price.