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Show Washington Snapshots , "Unthinking attacks" on farm profits were deplored recently by L. N. Perrin, president of General Mills, Inc., in testimony before a Congressional investigating committee. com-mittee. The farmer's costs and the price of his land have increased greatly since 1939, Mr. Perrin said, just as have the costs and investment in industrial plants. Consequently, he indicated, before saying the farmer farm-er gets too much for his products, critics should take into consideration considera-tion the rise in farm wages and the fact that a farmer buying land now must pay out much more cash or carry a larger debt. Same True of Industry Mr. Perrin said labor costs in his company are 127 higher than in the 1939-1940 period. While the total profits of General Mills have increased considerably during the past 10 years, he added, the per cent of profit per sales dollar has remained relatively constant, generally gen-erally less than 3 on the sales dollar. Theodore G. Montague, president of the Borden Company, pointed out that a piece of equipment purchased pur-chased 10 years ago for $10,000 is now worth about $20,000, and that $20,000 must be paid out to replace it when it is worn out. However, under present depreciation regulations regula-tions only $10,000 can be written off for the replacement. "In the meantime, our reported income has been overstated by the amount that depreciation fails to take account of the rise in costs of plant and equipment, and we have paid income taxes on overstated earnings," Mr. Montague added. |