The Waterbury Democrat., 1944-03-03


little matter of renegotiation of
their 100000 profits on 1941 and
1912 war contracts. Also, the firms
recently published financial state
ment showing profits of $21,127, 900
on 1943 business will be subject to
renegotiation as soon as govern
ment auditors finish their examina-
ton of the company's books.
, Congressman who are openly OPP
posed to the present renegotiation
law could go to Bill Jacks party
with clear conscience. Some could
go out of mere curiosity. Those
wanting to keep their noses clean by
having nothing to do with the lob
! by, even if it was in the open, could
stay away in droves.
/ When the party is all over - the
check paid out of Bill Jacks and his
partners own pockets, the dishes
washed and the dirty linen aired -
the questions of the Jack & HeintZ
case will still be the same as they
were before the party began
Have Jack e. Heintz been robbed
by the government?
Just how much has the firm made
out of war contracts?
How much better off are the
owners than before the war?
STARTED WITH 100000
Jack g. Heintz, Inc, was organ
lied in November, 1910, with cap
ital investment of 100000. In the
first two years of their operations,
the officers and sole owners of the
business-William S. Jack, William
r. Jack, Ralph Heintz and G. L..
Jack (now dead) received a total
of $836,500. The War Department
ruled that $3O4,500 of this should be
considered distribution of profits,
and they allowed" the partners to-
tai salaries of $532,00O This isn't
exactly hay, but bear in mind they
had to pay personal income taxes
on it and consider it as payment for
their services and abilities as pro-
duction men and managers for the
government.
All Jack & Heintz business has
been with the government. AS a
matter of fact, the government real
ly built up the company to do big
business.
First, the government through the
Defense Plant Corporation, spent
SO, 439, 900 to build factories and pur-
chase equipment for use by the
company, but at no cost to the COM
pany. After the war, Jack g. Heintz
will probably have first option to
buy these facilities, presumably at
less than cost.
Second, through what are known
as government Certificates of
Necessity" Jack & Heintz were able
to build and buy an additional 81
100000 worth of plant and facilities
for their exclusive use in carrying
out their contracts to manufacture
equipment for the Army Air Forces.
This $2,450,000 is being charged
against government business as a
cost of operation, SO that at the
end of the war Jack & Heintz will
have these facilities free and clear
as gift from the government.
INVESTMENT TRIPLED
Ihlrd, IRON the profits OF its sales
to the government, Jack q Heintz
have been able to take $262, 1000 and
invest it in their plant and equip
ment, thus bringing their firms net
worth to $362.O00, or three-and-a-
half times their original investment
of 100000. This is in addition to
the $304,5 500 which the partners call
ed salaries, the government called
distributed profits and you can call
anything you like. What it adds up
to is $566,500 take on two years
business.
For the third years business, end
ing October 81, 1943. the company'S
published profit and loss statement
shows profit before taxes of SOL
$4,000, or $4,185, 900 after taxes, all
of which is earmarked for postwar
conversion and renegotiation. This
last figure is five per cent on the
company's 1943 sales of over $102,-
600, 900. For 1914, Bill Jack has set
a goal of $150O00,000 sales. Some
how, it desn't sound like the poor.
house.