The People's Voice

N.A.M. DOESN'T LIKE CEILING. States Its Figures on PROFITS. Percentage of Profits Doesn't Jibe With Actual Percentage of Profit On a Basis of Capitalization According to Lobbyist.

CHICAGO.- (FP) -Declaring that the preliminary report on war profiteering by the house naval affairs committee is unfair, the Natl. Assn. of Manufacturers May 25 reiterated its stand against a ceiling on profits. Both the N. A. M. and the U. S. Chamber of Commerce have demanded a ceiling on wages.

The N. A. M. distributed a 65-page analysis of the committee's report at a production conference of the association and the Illinois Manufacturers Assn. here May 26.

In an attempt to create the impression that war contractors are not extorting huge profits from the government, the N. A. M. cited the committee's figures on profits for war orders, which averaged from 4.9% to 8%.

Actually the profit percentage for war orders is not the essential figure, as testified to the committee by James E. Barnes, veteran lobbyist for the Todd Shipyards Corp.

Barnes said that even if the government cut the profit on Todd's orders to 4%, the company would still make 50% profits on its capitalization.

Instead of being unduly concerned about the possibility of war millionaires, the government should be thinking of the effect of war business and taxation on manufacturing companies, the report concluded, ignoring the fact that after all taxes were paid, U. S. corporations last year increased their profits by record breaking percentages.