Detroit evening times. (Detroit, Mich) 1921-1958, 1942-09-11
Here's How
Ridiculous
Tales Start
Half Truths Published
Without Explanations
By PAUL MALLON

" AsoiiiANoi OA'f otP'
w How ridiculous stories get
started, and come 10 be believed
by large number OF people. is
well-proved in the uncelebrated
case OF Leon Henderson and COR
poration statistics.
Mr.. Henderson made a speech,
mentioning incidentally, that
corporation profits had increased
about four times since before
the war, but he made il plain
he was talking about profits"
before taxes. The figure. Of
course. is deceptive and mean
ingless, because taxes are by far
the biggest item in reducing
profits.
Mr.. Henderson's idle remark
was just as foolish as saying
every one in the East now has
more gasoline. except for ra-
tioning
Nobody loves a corporation.
II is a soulless economic factor,
now used as a political scare
crow to inspire popular scorn,
even though it is, at the same
time, the basis Of the capital
istic system, and thus furnishes
the nation with major war
taxes, workers with their means
of livelihood. and supports labor
unions. Economically. il is the
cash register of democracy.
MO ONE here paid much at
~ tention when a radical news
paper picked up Henderson's in
cidental remark and played II
up prominently-"c orporate
profits up 400 per cent"-accus-
ing other newspapers and maya
zines of not having mentioned
the matter in their accounts of
his speech.
Until the day following, 1t
forgot to mention. itself, that
Henderson's estimate was be
fore taxes" and therefore mis-
leading in any arguments about
taxes or social problems con-
fronting us.
Then the Go weekly ma
tional newspaper here picked up
the idea, put il above the mast
head on the front page in black
type:
Corporation profits up 400
per cent"
Now il this were true, as Go
workers were told through their
newspaper, and New York radi-
Gals have been led to believe.
the CIO workers should demand
a 400 per cent wage increase.
and the administration has de-
ceived us all by increasing our
income taxes to the extent of
the present bill. instead OF seiz-
ing more corporate profits.
MO PROOF that this Is untrue
~ is necessary to people who
read the stock market pages,
and know how much reduced
dividends now are, as compared
with even depression periods of
the past, or to any one who
knows how Mr.. Roosevelt and
Mr.. Morgenthau like to tax the
corporations.
But how wrong il Is. Is clear
from calculations made in the
current bulletin on business by
the National City Bank of New
York, an authority hardly in
clined toward misleading in
vestors.
1t investigated earnings, be-
fore and after taxes, the first
six months OF this year. in 125
large corporations holding the
biggest war contracts, and found
the net income 36 per cent less,
after taxes. than in the first six
months Of last year.
Taxes this year will take "a
per cent OF the otherwise net
income of these corporations
yes. "a per cent-as compared
with 50 per cent last year. Fed
eral income and excess profits
taxes are being increased Sc
per cent from last year to this.
So the real truth behind Hen
dersons improperly explained
statement is that corporation
profits are declining, not in
creasing, because of taxes.
No better propaganda against
our war effort has been con-
ceived by Goebbels than by some
Of our own well-meaning. but
thoughtless. citizens, who thus
bestir unrest.
THE importance of Mr.. Roose-
Il velt's revelation of his own
war plans in his fireside chat APP
parently has been lost in the
price-wage discussion.
Primarily, FDR made ii plain
he had rejected the idea Of con-
centration of our strength for
one big blow, and Intended TO
maintain four fronts - Often
sively. But he clearly suggested
his mind was not looking for
ward to decisive results on any
of these four FRONTS anytime
soon.
He suggested this in two ways.
first by disclosing that only
about 100000 troops had yet
been sent abroad ("three times
more men than we transported
TO France in the first nine
months of the first World War,