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12
The Commoner
-VOL! 18, NO. 7
PIlOFlTJtiUKS
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TAPPING TUB BARREL.
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2t QKV KVX "73TBS? ft-TV J JK
, rSCORi) JiV THJE HARMONY
(Copyrights 191S: By John T. McCutcheon.)
profits in the period prior to ' the
government price fixing policy, -aud
a uuuibor have continued to make
unusually- heavy profits since that
policy was Inaugurated. The United
States Steel corporation's runt;e of
profits, expressed iu terms or the
total amount invested iu the busi
ness follows:
1012, 4.7 ner een li. K7 ,.
ceut; 1014, 2.8 per cent; li)U. 5.2
percent? 191G, IB.U percent: 1&17.
21!) per cent.
The uet Income of the Steel cor
poration, before deducting federal iu
come aud excess profits tax In ID 17
shows this range;
1913, $77,075,217; 1913. U05
330.091; 1914, $40,520,407; 1915,
$9.7.907.983: 1910, $294,020,564
1917. $-178,204,343.
The federal -luco me aud excess
profit taxes of the Steel corporation
for 1917 were $223,405,435, which
leaves for uet Income $244,73S,9U3,
of which about one-tenth was ap
plicable to interest on bonds oe the
corporation, and the rest available
for dividends and surplus.
Recently some smaller mills made
objection that the government prices
were too. low for them. a spe
cial examination of their profits, by
the trade- commission "showed that
In almost every case these objecting
mills were eujoying unusual re
turns. '
Hits T D. Jotttw r,. .,...
-- - - .V,..W
nie only beneficiary of
to apologize for our business because
it is big. It is our size and our in
dustrial efficiency which has enabled
us to meet the demands of a hungry
world and today we stand alono as
the one industry which has fully
measured up to war needs, day in
and day out.
"This is an unfortunate time for
one branch of theN government to
come out with such a report as this
when another branch, between Jan
ury 1 and June 1, has called on
Armour tc uo. to supply to our forces
abroad and those of our allies food
products if a value of over $100,
000,000. The enormity of these op
dors compelled us to find new work
ing capital to care for our tmsiness.
"The recent increased demand up
on the packers for capital has been
so enormous that in the last three
years, out of the earnings, amount
ing iu ?o5,uuu,uuu, our company
was compelled to reinvest in the
business $42,000,000. History will
show that in order to feed the
American people the packers have
had to find $3 of outside capital for
every ?l provided from the earn
ings of the business itself."
Swift & Co.'s Statement.
L, F. Swift, president of Swift &
Co., issued the following statement:
"Swift & Co. absolutely denies the
sensational charges again made by
lift frl.1 1. .-i .
vv Huni irnae commission,
wherein this company, together with!
vw uiitct luige pacKers, is accused
of manipulating prices without re-
., ,, bum 10 law ana of unconscionably
connection with .thn rnt...i n.,ia ! nrevinir nnmi ,, 1- 1... :...
ll J lcomim"J' nd the margin of j unfair profits. We hope that thl
Chicago Trlbuno
profit shown during the year that it
o uili IIIUCHlHnr !lf nil f., .1
lug the year that wo woro makinK
v. .ifoWl iuuiu on our goods than
we were entitled to make.
"Most of the price -advances dur
mg the year were made bv us in
self-protection m? i ., v ". J.
lwL.?nlm fni piling up on us
wv-wlw v capacuy ta fill."
PAClvtiltS DENY VUOFXTKEUIXg"
IFrom the Chicago Tribune, June
J Ogdeu Armour issued the fol-
Sufa!eWeut Ul the got
Otnment charges last night:
one ?tlCaWS' like the Previous
ZQL? L "!. body, are de-
--, fc nuyivss tue ueadliuo rpnri
rs; they will not stand up under
honest investigation. Profits a?e
large or small m.u. .i... " ar?
Ll10 lJ "KisaltudQ of the
.w. HauwwiBtt ana the service
2fef " vrhlcn seem huge
an?iraT!!CrXef by tUo mmiSS
thei5 true light when
rTwortWnV asis ot ao"
ot product WSiUCSS r a P0Uttd
"It is a C?iff u-n..... t .
I cess to oi- hoftto ... w"i.i at-
.. ,1 ; -y "wi vur comuanv's
profits to, itae the commission audi 1 fni 11 C Wduct iu
to be aeNew Jersey Zk mS , U 1 w ly Uefourth
the affairs of which ikZLt: Xe ave developed our
the sonata, in miui wtw, " .;: .;"u!ib w. a Point where theses
principal owners. Thomas D JouS 5 enough gfS? atSbroW
of Chicago, was refused conhrmatZ te. Kvln so S5kJL?Umous oC do1
member of the federal .j
Of the- profits of the contused rlf a mob iZ? yer ceuL
mHk companies ui 1917 the eanunto. nor Lt?3 ?! Wrter of a cent
sum says that Helvetia, made more ae cKried hv ,7 "Wflteerai
than U0. per cent on cost and more I mU Vl !ed?ral tra co
ffisjrj5i.,Sirrj
, . , -, .vwm.j.. tu ltt rne word Hiut J 1 .-, "i W1KUKU1 V 11 0 afPo.. .... .
jBoraeu company made annroxLiiifthoiv So . a . ls "-"esc,, tor there Uin pa ftnu. , . VXL yriCQs, and!
13 per cent on cost, 1' Wh S,S were
public will at least reserve judgment
until the complete facts of the situ
ation are nut forth nH imfM ,
accused have had a chance to ex-
"UJU Ult?ae iacts in their true liVM
"To accuse essential industries of!
" Vr ,b prices anrt of -using
illegal devices is a serious charge
and one that should not be careleJs
U made by a government depart
ment Swift & Co. stands ready to
?wSC! a.ny lmPreiliced person
tnat it is in active competition with
all other packers, that it has no pow-
in.,Tnft l ' tuac n couttl not aaa-i
tpulate prices even if it desired to'
servSed ?hftA ,?at. U haS carefulIy ob-'
served the law m every respect. I
"As for tho niftMent.. Lr-1 ..
-. ... unuouuuu mat tne
S Packners have. been Profiteering,!
Swift & Co. admits that its profit
uus oeen much greater during the'
last two or three years than previous
to he war, but.it is ready to de
fend those profits as not only fair'
and reasonable but as absolutely es-1
sential to the proper and efficient1
diSlnS'l e PaCUUS biueS3 A
distlucUon should be made betwJ
VlJf dtatrtbufd mlhe
tbat pays oaly reasonable ca"h divf
ileuds aud has tn t n. Aa "lyt-
Proat back ito the bisiuest "
-rtiTSaf ,i.r.A-"-
it could be shovu-r, n,ni .?. u
robed pries of me.te 0 cousume
or lowered hhc n.(,.l ri V?115111119
to produced Swin Via- !
keted over rv mu . ya" nia.-i
kiuds .t producu u lj!
t? i.u i'WMW ot a cent a pound
It this profit had been eliminated i
together there would SSfteJH
4 mi c? iiHun
leather is alsn miiuiii . .
true. e ana u-
"Swift & Company deeply resent
the spirit and the manner in which
this report has been Issued, it wa,
issued for release at noon Saturday
a time when the officials in many
businesses have closed their desks
for the week and are usually not
on hand to answer sensational ana
unfounded charges. It tended to
throw suspicion about an essential
industry which it is publicly recog
nized has fulfilled tretnnrlnii0 i-
demands from he beginning perhaps
better than any other industry in the
country. It is. not fair to harass an
honestly conducted industry that is
straining every effort to meet these
tremendous obligations to our own
and allied governments."
Morris & Co. Statement.
Edward Morris, Jr., president of
Morris & Co., said:
"Referring to the statement of the
federal trade commission as to the
profits of Morris & Co., the figures
given are misleading and are abso
lutely incorrect.
"The profits of 263.7 per cent for
the three-year war period is evident
ly figured on a nominal capital of
?3, 000,000, while the pre-war profit
of 8.6 per cent was figured on the
total investment.
"During 1917 our investment was
in excess of $38,000,000 and our
profit was 144 per cent on this in
vestment, and not 263.7 per cent as
stated. The average profit on invest
ment for ihe last three years was
10.9 per cent.
"I don't know of any business
with so small a percentage of profit,
especially when it is considered that
we are handling highly perishable
products, and have to reinvest so
much of our profits in the business."
WininH T'Honc Writo.for List oftnventioai
il illiicu lUtttd Wanted. JtOO.000 In prfzei
ottered 'or Inventions- Send .-ketch, for free opinion
" patentability. Our four books sonttree.
V lctor J. Evans Jfc Co 7z.oth. Washlnston.P.C
PATENTS
TVatnen E. Coleman,
Patent Lawyer.W'jiablngtoa,
Hatea reasonable nicneat references. Ecat service
11VE ltElGHT. CAPABEK ILADIES
i avel demonstrate and sell dealers. jriO to
$150.00 pt?r weelr. F.illroad fifte paid.
Goodrich Urusr Co. lljpt.2, Omaha, Neb.
CLEAN YOUR ALFALFA P0CKET C0PHEil TRA?
0,.n.. vuiv xilJf1"-Semi me J-l for half il-uen
uuarariteed or money refunded. Kaccess Gopher
J.ri Co., liarlaa. Ioivu.
atlvely W?li. i J a ute proat per
Tho WftlvoHn nnmnnnv 8,. ,...
to the. commisaiou, under date, at
Mauclt 1Q 19013, says;
WW -Mrti!e to- say, hoAv,ev(eiv iit
unit of rodU(.tn :iruc V?
iug. industry. pacK'
"The chatrfffi nf ,..,.. .
m tk. m w uSrTbSaSS;
paia out 0f ss :,:;;: ,ws we
ymatakl ia tae bueCwo do ao
M" We CttU be " ottoTu
'The insinnnfin ik.L ..
have. m,id m,T." ...!' Welters..
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