Evening star., 1943-03-28
New War Milli0naires Unlikely
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Continued From Page BID
the language Of this country as it did
after the last war.
The private enterprise system could
very well be seriously jeopardized by even
an apparent willingness to make what
the general public would regard as ex-
cessive profits out of their war activity.
The reduction of that jeopardy is one of
the services that can be performed by
this board
Reports Show Effects.
Karkers opposite number on the Navys
Adjustment Board is K. H. Rockey, a
New York businessman. For the Navy,
the top man in charge of renegotiation,
doing the work that Col. Browning does
for the Army, is Frank Folsom, who, like
Browning, came from Montgomery Ward.
Donald M. Nelson, who was with Sears.
Roebuck, brought both Browning and
Folsom to Washington. 1--WE used to cut
each others throats in Chicago" said
Col. Browning Of the WPB chief.
The annual reports of corporations for
1912, now coming out, show the effect of
the new tax rates. Under the Revenue
Act of 1912, corporations pay combined
normal and surtaX rate of 40 per cent;
this compares with per cent for 1917
and II per cent for 1918 In the last war,
the excess profits tax was graduated up
to go per cent for 1917 and 80 per cent
for 1918, as compared with the fiat 80
per cent imposed by the act of 1912.
Against the 80 per cent there is 10 per
cent postwar rebate, making the net ex-
cess profits tax 81 per cent
Corporations generally, despite tre-
mendous expansion of production made
no more in 1912 than in 1941 They
may have made less. Seven hundred and
ten leading corporations, with aggregate
capital and surplus of $12,585 ,000,0 900 at
the beginning of 1912, had a combined
net income in 1912 of S1,21OOOO,000 after
taxes, as compared with ST ,397 100000 in
1941. There was thus decrease in their
earnings, after taxes, of 1874 per cent
from 1941 to 1912 Taxes took 485 per
cent of net income in 1941, 66.4 per cent
in 1912. Excess profits taxes are figured
here with the postwar credits deducted)
Taxes were one great factor in holding
down net income; another was increased
labor costs. Manufacturing industries as
whole reached new heights last year
both in employment and payrolls, the
respective increases over 1941 being l3
per cent and AZ per cent.
Labor Feels Better"
Labor was better off than ever before
and it felt, according to Fortune maga-
zine survey in January and February of
this year, a sense of recent personal bet
terment. Fortunes statistics showed 518
per cent of factory workers voting that
they felt better off, than last year at
the same time, and 35.1 per cent that
they felt about the same
Redistribution of the national income
is being accomplished at what the De-
| partment of Commerce calls conserva-
| lively, striking rate. A huge increase
| in the national income between 1941 and
1912 brought it to $119, 300 900, ,OOO The
largest percentage increase went to farm
| owners, whose gain was 55.5 per cent
| over their net income of 1941 and more
! than 100 per cent over that of 1885,
Salary and wage payments, including the
pay of the armed forces, increased 80
per cent over 1941 and 80 per cent over
1889. The increase in payments by pri-
vate enterprises alone was 81 per cent
between 1941 and 1912. At the same
time, the department says, total cor
porate profits after taxes remained about
the same
There are doubtless wage inequities
that remain to be cured, as there ALWAYS
are; there are doubtless industries here
and there that made more money after
taxes in 1912 than in 1941; there are
doubtless instances where corporate ac-
counting practices have been used to re-
duce profit showings; but the overall
picture can leave no doubt that this is
neither bankers war nor an industrial
prof1teers' war. No semblance of justif-
cation exists for such charges as that by
John L. Lewis in seeking wage increase
for his coal miners, that the Government
is permitting 'cost-plus millionaires to
continue to loot the public purse
Examples Show Trend.
A few examples will show the trend:
Though the sales of the Douglas Air
craft Co. rose in 1912 to $501, ,781 1886 from
$180 0,940, ITO in 1941, its net earnings were
down 1877 per cent. Net profit for 1912,
after taxes and $500, 900 deduction for
contingencies, was equal to 1882 share,
as compared with 5000 the previous
year.
Earnings of the Monsanto Chemical
Co. per share were $3.75 in 1912 as COM
pared with $3.50 in 1941. Out of a net
income of $16,588,73s Monsanto paid in
come taxes Of $11.00l 900: these taxes
were the equivalent of $8.75 a common
share as compared with $7.71 In l94l.
The report Of the United States Steel