The people's voice. [volume] (Helena, Mont.) 1939-1969, 1943-07-09

>security and unemployment
taxes, all of which were fig
ured in as production expenses
and actually paid for them by
the federal government, all of
the corporations showing large
increased net profits after de-
duction of these sums from
their gross earnings on govern
ment contracts.
In the statement made in congress,
Representative Engels also brought
out the staggering profits made by
some other, smaller organizations, fl
nanced almost entirely by the De-
Tense Plant Corporation, even after
renegotiating of contracts, materially
whiting down the first profits made.
The contract by the federal govern
ment with Jack and Heintz which was
discussed in The Voice last year. was
one of the instances cited by Engels.
This company was organized in 1910
with a capital stock structure of 100
shares of no par value. Four stock
holders paid in IS a share or $500
for the stock and also paid in $99, 500
as surplus, making total capital
and surplus investment of 100000.
This company then made a contract
with the government for the produc-
ton of certain materials, and the De-
Tense Plant Corporation furnished ma
chinery and equipment costing ST.
477,100.OO The company showed
earnings in 1912 on its government
contract AFTER taxes were paid, of
S1,740,829. This profit was also
AFTER paying each of the top three
officers $116,645 each for the year
and the distribution of a christmas
bonus" to employees of $944,300 and
with an average wage to employees
of $5,172 for the year. 1t should be
noted that the taxpayers of the coun-
try paid this company a net profit
of $1,740,S39 on an invested capital
of 100000.
Another company, High Standards
Manufacturing Company shows by
its records what can be done under
the free enterprise" system using
the peoples funds. This company
in 1926 with a capital struc-
ture of 5000 shares with par value
Of SIS. One family owns 400 of these
shares. On December 81, 1910, the
capital stock paid in and the surplus
of the company totaled $685.
$50 Then Santa Claus Uncle Sam
came on the scene and in 1912, the
showed a profit before taxes
Of $3O,996,OOO, the Defense Plant Cor
poration having supplied it with a
total of $6696,62S with which to OPP
crate.
The profit shown, was however, so
out of reason that the contract was
but even after renegoti-
alton and with taxes paid the COM
Dany made a net profit of $1,8S8,918,
Dr. S377.78 on each five dollar share
Of its invested capital stock In addi-
ion to that, the company had very
provided itself with an
affiliate corporation, the Dixwell Cor
)oration to which it had paid six per-
cent on its gross sales of the year
If $50,771,000 for management and
engineering fees" one of the more
common forms of lawful racketeering.
This, was of course, perfectly "legiti-
nate and remained paid.
The record brought out showed that
juch companies as E. l. DUPONT de
Jemours Corporation, the General
Motors Corporation, the Chrysler Cor
,oration, the Bethlehem Steel Corpor-
tion and others had made profits as
Ugh as SO per cent of the dollar mar
,et value of their stocks in 1941 and
942. Because of the mounting prof
IS of these corporations engaged in
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