Show 1300 Concerns' Concerns Profits Up 37 37 Per Cent By JOHN JOliN L. L BECKLEY Associated Press Statistician NEW YORK July 30 Profits 30 Profits o of f the first companies to re report report report re- re port for the second quarter of 1940 were 37 per ce cent t greater than thana a year ago The gain was made in the face of increased taxes for defense purposes and despite the fact that tha most leading corporations charged added taxes for the entire first half against second quarter earn earn- ings The legislation was not pas passed ed until the second quarter but made madeth th the increased rates retroactive to cover the entire calendar year I New excess profits legislation now planned in Washington ma macut may cut ut further into 1940 earnings Earnings of the first com corn companies companies rose rosc to com corn compared compared pared with in the May June quarter of 1939 Excluding the relatively stable profits of the American Telephone and Telegraph company net in income income income in- in come of the group was 43 percent percent per percent cent greater than the same period last year Gains Widespread The gain in earnings was wide wide- spread Of the companies reported better results than a year ago while 81 made a poorer showing howing All industrial groups of which a 8 sufficient number have reported to afford a comparison did better than last year with the single ex exception exception exception ex- ex of the food ma manufacturers where higher costs of grain and other raw materials cut into profit margins Largest increases in earnings were reported by heavy industry with the steel companies railroads railroads railroads rail rail- roads machinery manufacturers and railroad equipment makers taking the lead For the steel industry it was the most profitable second quarter since 1937 Twenty-eight Twenty steel companies which have published their results so far which do not include U. U S. S Steel corporation showed net income of almost four times as large as the earned in the s second cond quarter of 1939 Rail Kail Equipment Booms Nine railroad equipment makers makers makers mak mak- ers many still working on he heaVy vy backlog of orders carried over from 1939 reported profits for forthe forthe forthe the three months ended June 30 of against in inthe inthe Inthe the same period last year Sixteen manufacturers of machinery machinery machinery ma ma- chinery als also came came close to tripling last years year's net income showing profits of compared with The railroads steamed out of the red and into the black 18 companies reporting second quarter quarter quarter ter net income of against a deficit of in inthe inthe inthe the same period last year The automobile industry which had ad enjoyed a 22 p per pr r cent increase in production in the May April-May- June period showed a small gain gainin gainin in earnings Profits of seven companies companies com corn totaled compared com corn par pared d with a year ago Partial explanation however is found in the fact that General Motors deducted from its earnings to set up special re reserves reserves reserves re- re serves including for possible foreign losses arid and excess profits taxes on 1940 net income Comparison by Groups Second quarter profits of other Industrial groups group compare as fol follows follows follows lows 1940 1939 17 public Utility 16 chemical 13 auto accessory 13 material and supplies 12 petroleum 1 12 32 food tood 9 II dec elec equip and appliances 9 II metal mining 4 41 18 coal mining mining 6 business mach macho miscellaneous d d Deficits |