Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1921-03-04
j. s. STEEL EARNS
BILLION IN z YEARS
COMPTROLLER Williams Assa..i
Gary for Alleged Holdup.
ENORMOUS PROFITS CITED
Charges That by Manipulation OF Ac-
counts the Corporation Has De-
frauded the Government Out
of Large Sums in Taxes.

Washington, Feb. 26.-The United
States Steel corporation has earned In
two years more than billion dollars
of profits. "the exaction of which has
had a most disturbing and injurious
effect on our country and our allies,
according to a statement of John
Shelton Williams, comptroller of the
currency.
This swollen and unconSci0naDle
profit" Mr.. Williams charges, was
made selling steel at prices averaging
$50 ton in excess of the amount nee
essary to pay dividends on steel
stocks" He also charges that by
manipulation of its accounts the cor
'poratiOn defrauded the government
out of large sums In income and ex-
cess profits taxes.
The statement by Mr.. Williams fol-
lowed a letter sent TO Albert III. Gary.
president of the corporation, on Feb
iruary 10, and heretofore unpublished,
Iin which Mr.. Williams said:
"No insiduous, sneaking propaganda
of high-brow or lOw-brow apostles OF
ruin could put In the popular mind so
much poison as refusal by such cor
iporation to do its part toward solving
great difficult problem, reviving in
Idustry and business activities and pro-
noting industry and the peace and
happiness of humanity"
In his statement Mr.. Williams said:
Unnecessarily high prices exacted
by the United States Steel corporation
during 1918 for supplies of all kinds,
especially steel and iron products, cost
the government many hundreds of mil.
lions of dollars
$50 Excess Charged.
"Official figures of the corporation
show that it charged. for every ton of
its steel products, an average of about
$50 more than necessary to pay divi-
blends on steel stocks.
'"rhe United States Steel corpora
ton produces close to one-half of the
steel made in the United States and
through its subsidiary companies and
powerful financial and industrial al
liances holds dominating position in
the steel and iron trade.
1.-The company officially reports total
value of it's business for 1918 at
81 ,2SS. 029, 225. To create this product
the corporation paid out total of
1852. 663, 524 on pay rolls. We find that
they received an average of 1910 per
ton for every ton of the IA, 124,9S6 tons
of rolled steel and other products
shipped to domestic and foreign trade.
1.-THE net earnings Of the United
States Steel corporation for 1918, as
shown by its annual report, amounted
TO S549, 10000. In its report to its
deducted from net earnings an esti-
mate for war, income and excess
profits taxes amounting to $274,277,-
900. leaving net earnings oe $274, 903,-
600.
This deduction included an item of
s96,675,OOO for maintenance and re-
pairs. though the company was carry
Ing on its books to the credit of de-
probation and extraordinary replace
ment' the impressive sum of S191, 2S1,-
600.
"could Double Wages"
1.-The earnings of the company were
so large during 1918 that it could have
doubled the wages and would have
had surplus left of $96,517,OOO.
IF the United States Steel corpora
fnn mi 70 ,AIo -,
basis during the war, the government,
tour allies and the public would have
been saved exactiOns amounting to
many times the S2SS,00O,OOO to be paid
by 1t in federal income taxes.
1.-THE United States Steel corpora
tion with its plethoric treasury could
richly afford to say to the government
that for the remainder of this year it
will sell its products at net cost, hav-
ing made i'm the last two years more
than billion dollars of profits, the
exaction of which had a most dis
turbing effect not only on our allies
but upon our country in the midst of
war.
''The company's report states that
fits inventory was arbitrarily reduced
by more than $50,O00,0OO December 81.
1918. by marking down stock on hand
from actual cost or market value to
normal prices But II does not say
what prices they regard as normal.
My conclusion from the foregoing
figures is that the United States Steel
corporation should make radical and
sharp reduction from the prices recon-
mended by the Redfield committee"