United Automobile Worker

Murray Denounces Refusal of Big Business To Share Heavy Profits with Labor

Profits of 925 Corporations Increased 27 Per Cent in 1940

A concise and accurate picture of the windfall of profits which has descended on American business is given by the National City Bank of New York. Its monthly business letter for March shows that despite higher taxes and wage increases in 1940, net profits, less deficits, rose 27 per cent above 1939.

A total of 925 corporations for which reports are given earned $1,225,069,000 in 1939, and $1,554,280,000 in 1940, the bank statement said.

Here are the net profits of some of the leading manufacturing companies:

ATLANTIC CITY. - American big business, enjoying the greatest profits in a decade or more, is flatly refusing to share its prosperity with the millions of American workers, CIO Pres. Philip Murray charged in a speech delivered here March 1st to the American Association of School Administrators.

Six leading corporations, he told the school officials, made a profit in 1940 of $699,780,000 from the work of 835,000 employees.

General Motors, he recounted, made a net profit of $977 on each of its employees. American Telephone & Telegraph netted $528. Standard Oil of New Jersey made $2,000 per worker.

DuPont did even better, with $2,220 per worker. General Electric earned $876 per employee. U. S. Steel $420.

RAISES REFUSED

"Is this a fair economic system?" Murray asked. "Does this kind of system provide American workers with an equitable distribution of corporate profits?"

Murray said he has had frequent conversations with leading industrialists during the past few weeks and explained that some of these super-profits should be used for wage increases.

"Unfortunately, the attitude of American industry today is one of absolute, positive refusal to raise wage concessions of any description," the CIO leader declared.

HINDERS DEFENSE

"They contend that if the wage structure is improved and men and women are given more money that it might result in something they call 'inflation'. The country might go haywire under the impact of inflation-so they suggest, these leaders of American industry, very bluntly, very boldly, that nothing should be done in the U. S. A. during the period of national defense to improve living standards or to increase wages.

If the nation's defense program is jeopardized," Murray warned, it will be "attributable to the unwillingness of these large employers of labor" to recognize the needs of the workers.

In a reference to a corporation that was obviously the Bethlehem Steel Co., Murray pointed out that despite all the talk of an emergency, "one single corporation is producing approximately 70 per cent of our nation's armor plate, building approximately 70 per cent of our nation's merchant marine."

Philip Murray, President of the CIO, snapped in a speaking pose at the recent Detroit meeting of Ford workers.

No. of	Industry	1939	1940	Per Cent
Cos.	Automotive	$220,468,000	$242,225,000	9.9
14	Auto equipment	29,282,000	42,859,000	46.4
38	Railway equipment	12,062,000	29,914,000	247.92
20	Aircraft and parts	8,114,000	23,591,000	290.74
18	Iron and steel	138,532,000	274,956,000	98.5
43	Farm Implements	27,389,000	46,815,000	70.9
11	Building equipment	8,512,000	11,773,000	38.3
23	Electrical equipment	31,697,000	43,130,000	36.1
29	Hardware and tools	10,617,000	15,915,000	49.9
25	Household equipment	7,339,000	8,528,000	16.2
17	Machinery	24,008,000	40,445,000	68.5
77	Office equipment	6,988,000	9,303,000	33.1
10	Nonferrous metals	12,077,000	15,782,000	30.7
7	Misc. metal prod.	37,918,000	40,689,000	7.3