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Show Profits Haven't Disappeared P.esident Roosevelt obviously holds out to business the thought that if purchasing power can be provided for the one-third of our population that is ill-housed, 111-clcthed 111-clcthed and ill-fed there will be possible lower prices through enlarged en-larged production and consequently consequent-ly reasonable profits fcr business itself. Meanwhile, attacks are made upon the Administration for its attitude and the spokesmen for business aver that the profit system is in danger. Mr. Baruch calls upon the nation to choose between the profit prof-it system, and the European idea of State regulation and punishment. One would therefore imagine that business was in great distress and that earnings, or profits, have largely disappeared. A compilation, made by the National City Bank, however, reveals an average gain in earnings of 1,020 companies in 1937 cf 8.5 per cent, which follows an ave'age gain, fcr 2,140 companies compan-ies in 1936, of 47 per cent. As C. P. Hughes points out in The New York Times, "The case of business is most nctably weak because be-cause it will not thoroughly analyze the problems of the day. Large interests in-terests are satisfied with selling j their slogans to 'small busines' and promoting that uncertainty of which they complain so bitterly, and which is costing them and the country huge sums." One might cite the case of George H. Houston, president cf the Bald-win Bald-win Locomotive Works, who recent-I recent-I Iv assailed the Administration at-I at-I 'itude towards business on many j counts. Yet. the compilation of the Natir-.al City Bank shows that nineteen railway equipment companies comp-anies irreise? their profits in 1937, by 214.4 per cent ever their fa'rings. 1 There is the case cf the utility 'executive who proclaimed, "It is my baby that is hurt now maybe your baby later." Yet. his Tennessee carpany, in 1S37 in the midst of jTVA competition, grossed eight per cert more than in 1936 and earned a ret of 13 per cent higher. Other examples of increased In- come which happened to come to cur attention include the Pure Oil Company, with a net income in 1937, after all charges, taxes and reserves had been taken, of $11,-403,805, $11,-403,805, compared with $7,658,372 in 1936 and, in fact, its .highest total since 1926; the American Tobacco Company, with a $26,197,493 net in 1937, compared with $20,183,821 in 1936; the Bethlehem Steel Company, Comp-any, with a net income for 1937 of $31,819,596, which compares with $13,901,006 in 1936. In view of such instances "it seems appropriate to ask just what profit returns these parties seek before be-fore they will agree that the system sys-tem is not in danger?" |