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Show HEPORT SCORES PKKERPHOEITS Earnings During War Too High, Trade Commission Opinion Says. WASHINGTON", Sept. 24. Maximum profits for the five largest packers under limitations prescribed by the food administration admin-istration during the war were "unreasonably "unreason-ably hish" and from two and one-quarter to "three times as great as those in prewar pre-war yoars, av'cording to a report made to President Vi'llson by the federal trade commission on June :S. ItUS, but withheld with-held from the public at the request of Food Administrator Hoover. A copy of the report, together with letters let-ters sent by Mr. Hoover to the president, were transmitted to the senate today by the commission in response to a resolution resolu-tion by Senator Xorrls, Republican, Nebraska. Ne-braska. Recommendations made by the commission com-mission included: "That net worth (actual invested capital cap-ital presented by stock issued and surplus) sur-plus) as of November 1. 1917. be the basis upon which the allowed rate of profit be computed for all packers. ! "That the normal rate for the five chief packers be T per cent on net worth, with one-half per cent Increased allowances for every 10 per cent increase in weight slaughtered, and one-half per cent decrease de-crease in rate for every 10 per cent decrease de-crease in weight slaughtered; the maximum max-imum profit allowed not to go above 9 per cent. "That the maximum allowed the smaller packers be 9 per cent, increasing on a sliding scale to U per cent, but without a decreasing scale. "That profits in excess of the prescribed pre-scribed rates be either turned over to the treasurer of the United States or apphed against further government purchases. " In his letter to the president, dated July 8, 191b, Mr. Hoover said he did not believe "anv useful purpose is served by public ventilation of departmental disputes dis-putes as to governmental policy," and added: "If congress passes sufficiently strong excess profits legislation it will automatically auto-matically correct the situation and meet the views of both the trade commission and ourselves. Mv proposal, therefore, is that the whole matter shall be laid aside until the action of congress is determinable." determin-able." In another letter, Hoover said: "The food administration regulations j permit earnings upon borrowed as well ( as packers' own capital ; whereas, the ' iradt commission proposes that no profits should be allowed on borrowed capital. This appears to us to sirike at the base of most business enterprises. As we understand un-derstand it. a hirge part of the commerce an i trade of the country is founded on the earnings of an ex. ess sum or bor- ' rowed capital over the bare interest cost j srid we feel that if this principle proposed j by the trade commission were laid down i as a precedent it would produce an ah- J so'ute state of panic in the L'nited States." ! . . . i |