Show HUGE PROFITS BADE MADEl i BY PACKERS IN WAR PERIOD Report of Trade Commission Commis sion Withheld by Hoover From Public By Associated Press Prell W WASHINGTON Sept 25 Maximum Maximum profits for tor the five largest packers under under under un un- der limitations prescribed by the food tood administration during the war were were unreasonably high and from two and quarter one-quarter to three times as great as those in prewar years according to a report made to President Wilson by bythe bythe bythe the federal trade commission on June 28 1918 but withheld from the public at the request of Food Administrator Hoover A copy of the report together with letters sent by Mr Hoover to the president president president dent were transmitted to the senate Wednesday by the commission in response response response re re- to a a. resolution by Senator Norris Norris Norris Nor- Nor ris Rep Nebraska Recommendations made by the commission commission commission com com- mission Included That net worth actual invested capital presented by stock issued and surplus as of November 1 I 1917 be bethe bethe bethe the upon which the allowed rate of profit be computed for tor all aIt packers RATES DESIGNATED That the normal rate for the the five chief packers be 7 per cent on net worth with 1 13 a per cent Increase increased al allowance allowance allowance al- al lowance for tor every 10 per cent Increase in weight slaughtered and one-half one per percent percent percent cent decrease in rato rate for every 10 per percent percent percent cent decrease in weight slaughtered red the profit allowed not to go above 9 per cent That the maximum allowed the smaller packers be 9 per cent IncreasIng increasing increasing ing on a sliding scale to 11 per cent but without a decreasing scale That profits In excess of the prescrIbed prescribed prescribed pre pre- scribed rates be either turned over to the tho treasurer of the United States or applied a against further government purchases REASON FOR SUPPRESSION In his letter to the president dated July 8 1918 Mr Hoover said he did not believe any useful purpose Is served by public ventilation of departmental departmental departmental depart depart- mental disputes as to governmental policy and added If congress passes sufficiently strong excess profits legislation it will wit automatically correct the situation and meet the views of both the trade commission commission commission com com- mission and ourselves My proposal therefore is that the tho whole matter shall be laid aside until the action of congress Is determinable determinate In another letter Hoover said sald The f food od administration regulations regulations regula regula- permit earnings upon borrowed as well wen as packers' packers own capital whereas the trade commission proposes propos propos- es that n no o profits should be allowed on borrowed capital This appears to us to strIke at the tho base of most business enterprises s. s As we understand it a a. large part of the commerce and trade of the country is founded on the earnings earnIngs earnings earn earn- ings of an excess sum or borrowed capital over the bare interest cost and we feel teel that if It this principle proposed by the tho trade commission were laid down as a precedent it would produce an absolute state of panic in the United States |