The Waterbury Democrat., 1944-01-22

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level of 1899 business, which was a
good year. The idea behind this
theory was that business could be
allowed to make up to double what
it made in 1889 without curb, but
that all profits over the 100 per cent
margin should be taken up by gov
eminent taxation.
This proposition is one of those
starry-eyed things that people in
Washington like to talk about when
they haven't anything more prac-
tical to do. On it's face, it may look
like reasonable proposal. Certain
ly, no fair-minded or ungreedy in
dividual or corporation would object
to being limited to a mere 100 per
cent increase in profits. The OPA
boys SHE'D clear away from any such
ideas, however, remembering the
difficulty their outfit got into back
! in the Henderson-G albraith days
when some of the congressman dis
covered that they were playing
around with studies on limitation of
profits as a means of price control.
WAN FNOFI1 FLU UhES
This ble-profit limitation
theory therefore has no standing in
government, and is not even being
remotely considered as something
that might be done this year. It is
presented here merely as point of
departure for little exploration in
to the realm of war profits, to see
what they are.
If you look at the total profits of
all U. S. business it is possible to
come up with a conclusion that
profits have risen more than 100
per cent during the war years. De-
partment of Commerce figures, bas-
ed on income tax returns, show that
the profits for all business in 1889
were over $4,000 100000. Prelimin-
airy figures on 1912 indicate profits
were over $1,000, 100000, while the
estimates for 1913 profits will be
over $4,000, 100000. These figures are
for profits after taxes.
When you consider figures on
profits before taxes which are nor
mally used in these calculations, the
rise is even greater. For 1889, profits
were 100000, 1000; for 1912 they are
SIG 200, 100000, and for 1913 they are
estimated at SIS, 900, 0O0,0 600. Here are
triple and quadruple increases in
profits. Are they what might be call
ed unreasonable?
From independent studies Of the
profits of separate industries within
these groups come figures which
might be used to show "unreason-
able" war gains. They may be high
lighted as follows:
BOOM FOR LARGE
MEAT PACKERS
Compared with average earnings
for the years from 1869, the 1912
profits of SO meat packers, before
taxes, were over four times the pre-
war level, on only SO per cent high
er sales. For all companies the ag-
gregate profit for each dollar of
sales remained constant at "a per
cent, but the profit on each dollar
of net worth rose by third, from
IL per cent to Is per cent. These
gains were largely among the me-
dunn and large concerns. Small con-
Germs showed losses.
On II per cent higher sales in
1912 than in the base period years
of 1869, SIS leading manufacturers
of women's hosiery reported more
than a 400 per cent increase in
profits before taxes. Sales in 1912
were per cent lower than in 1941,
profits q per cent higher. In 1889
these companies made per cent on
net sales, in 1912 they made IA per
cent.
Fruit and vegetable Gamers show
ed profit increases higher than in
any other food group, being in 1912
five times greater than in 1868
base period, on less than double the
pre-war volume of sales. In the can
ming industry. it was the smaller
concerns which reported the great
est increases in profits, some show
ing a 1000 per cent gain, while only
one large Gamer showed increases
of more than 500 per cent.