Newark leader. ([Newark, Ohio]) 1917-1946, 1920-01-23
How Profiteers Mulcted Nation During the War
is Told by Basil M. Manly
Profits of One Steel Corporation Amounted 29O999 Per
Cent--Former Labor Board Head Quotes Facts
to Prove His Charge of Profiteering

"These figures are based upon the
original returns of the companies, and
take no account whatever of millions
of dollars of tax evasions which were
revealed by the Internal Revenue
Bureau in auditing returns. 1t is alb
solutely certain that in the last three
years the American people have paid
in net profits every dollars worth of
stock Of the coal companies.
Capitalist Hypocrisy
"These are the gentlemen who
wrapped the American flag around
themselves and denounced as Bolshe-
visits the coal miners who asked for
an increase in wages sufficient to
enable them to pay for the increased
cost of living caused by such profit
GERS as these.
"But while the coal operators were
making profits ranging as high as
1856 per cent. on their capital stock,
he meat packers were making profits
ranging as high as 4,244 per cent,
Gamers of fruits and vegetables
2,032 per cent, woolen mills Ito
per cent, furniture manufacturers
1926 per cent, clothing and dry goods
stores 1926 per cent, and to cap the
climax, steel mills ranging as high
as 2O,999 per cent.
"In the industries engaged and
manufacturing the necessities of life
made less than 300 per cent or more
on its capital stock.
"Out of SOC flour mills, "a reported
net profits Of over 100 per cent on
their capital stock and one company
reported 1928 per cent. The bread
and bakery companies were not so
fortunate, but out Of PIT of them "a
made more than 100 per cent on their
capital stock.
Concerning packers, the following
is a significant thing found in the
Treasury's report. A corporation is
listed with capital stock of 100,-
100000 in 1917. There are only two
meat packing concerns with such a
capital stock in 1917-Armour and
Swift.
"The published reports of Armour
and Swift report to the public that
their profits were only $90,628,157 in
1917, and Swift reported profits Of
only $94,650,OO0.
"The Treasury Department reports
give the returns of As woolen mills,
one of which earned Ito per cent on
its capital stock. Among the woolen
mills We also have a case similar to
the meat packers, of concealment Of
income of woolen company capital
lied at $60,000,000.
at must not be imagined that
manufacturers were the only ones
who reaped enormous profits during
the war The report of the Treasury
Department shows 2,O68 clothing and
dry goods stores, one of which earned
1926 per cent on its capital stock and
26 earned more than 100 per cent.
There are SIT furniture stores re-
ported, of which 78, nearly Is per
cent, earned more than 100 per cent.
on capital stock, and one earned 781
per cent.
LO, the Poor Contractors
"We have heard great deal about
the high cost of building in the last
few years. In nearly every case an
attempt is made to attribute the high
cost to the wages paid building labor,
but this report shows that out of 800
contractors and construction compa-
nies, 154 earned profits of over 100
per cent on their capital stock, and
one of them earned 1890 per cent, or
nearly four times its total capital in
a single year.
"In conclusion, let me say that l
have no use for any man or set Of
men who, in republic, seek to over
throw the government by force or
violence, but know, that one con-
scienceless profteering corporation
does more to destroy and overthrow
this government which we love than
any thousand anarchists who were
ever born"