Montana labor news., 1946-01-24

billion dollars worth OF new plants and
equipment were added TO the indus
trial capacity Ill this country between
1910 and l9ll. The government con-
trihulcd directly more than tWo-thirds
OF the total investment involved.
At the end OF 1889 there were $4,000
machine tool, i'll place in this coun-
try BY 1914 the number had risen to
100000. an increase ot nearly so per
cent. General Motors had 5000 ma
chine tools in 1910. in October, 1913, it
reported 1874 machine tools III place.
Even after industry has financed lis
own transition to a peacctlme produc-
ton, equal at least to the pre-war level
OF l94l. it will haze on hand a fund,
estimated by t. 5. Department OF Com
mcrcc economists III 1914 as between
10 and 20 billion dollars, lett over Tor
plant and other expansion.
1t viii also get IRON the government
a Hat 10 per cent rebate on wartime
payments OF excess profits tax as a sort
Of Severance pay 10 compensate it
for the cessation OF war contracts. This
sum alone amounts To about S22,S4O.-
100000, and is equal to more than half
the total net corporate earnings in the
banner year OF 1857.
In addition, under the carry-back
and c~arry-forWard provisions OF the
excess profits tax, L. S. corporations
have accumulated with the government
a sort Of Unemployment insurance
Should the profits Of any company in
the next 10 years drop below its So
called normal profit level. II is en-
titled to a cash refund from the U. S.
treasury to make good these losses.
That refund cannot be greater than
the total income and excess profits tax
paid during the war. Theoretically, in
dustry has thus a reserve fund Of o.
billion dollars to offset r%cconvcrsion
losses.
The steel companies, for example, face
reconversion with savings met working
capital) OF two billion dollars. Their
flat 10 per cent rebate from the treas
ury Will amount to about 200 million
dollars more. II they fail to show a cent
OF profit in 1910, the treasury must give
them a rebate OF l40 million dollars.
This last rebate guarantees them %
per cent more profits than they aver
aged during the years Of peace!
Nn,.hcV. -, tIo x,Ar1I ,, ~ nar,Ad
OF history, have comparable material
gains been registered by industry. The
var presumably has wiped out Ger
man and japanese industry. Principal
industries in Allied countries have SUI
Tered SO heavily that it will take them
a decade or more TO regain even pre-
wal production.
American business today is in the
position OF completely dominating world
trade. 1t has become so strongly
entrenchcd through its war profits that
Tor many years it need fear no real
competition anywhere on the globe.
Congress has not yet passed a com
prchcn,ivc unemployment bill Tor the
American people. But the tax reduc-
ton bill has been rushed through in
record time. Principal provision Of this
bill eliminates the excess profits tax
as OF January |, 1910. The total cut
i'll taxes is almost six billion dollars, APP
portioncd as follows between individuals
and corporations:
individuals .S2,1S4 million
Corporation, ......... $3.50 million
The reduction in individual income
taxes is overwhelmingly i'll favor Of
the larger income groups. The little
man gets one dollar a year more 10
spend tic millionaire gets S44.21S more.
The 900 largest corporations IN this
country VIII get a tax reduction aver
aging two million dollars each IN 1910.
This amounts 10 a benefit twice that
Of the res, q the $4,000 corporations
which have admitted excess profits.
There is no gam whatever ior the 2bl,-
O0 smaller corporations that were were
never able to report excess profits.
N the same time 1t was revealed
that The dclcl in the national budget
for ~ q, ostinated at 30 billion dol
liars
Nh this. iien. must so into the bal
afHt in Wlish we weigh our victory
Nn eae s'de Nc have the total cost
81 war 5}h hllion in cash plus the
dea, iht w, gaacd. the missing or the