GERMAN PROFITEERING

Dominion, Volume 11, Issue 221, 6 June 1918, Page 6

GERMAN PROFITEERING

The "Frankfurter Zoitung" of March 10 uublishi'3 details of the munitions pro Steering scandal, which has caused the German War Office to place the great Daimler Motor Company of Stutt'jart under military control. These are tne most notorious facts already revealed:— Asked by tho War Office to justify inordinately high prices, the company submitted fraudulent calculations, lu 1916, though .the company's gross capitaUvas only ,£100,00(1, profits were ,£(il9,000, as compared with J;l(i7.000 in 1913. Dividends rose I rum U per cent, in 1913 to 16 in 1915, 28 in 1916, and 35 in 1917 ' Meantime reserve roso from ,£275,000 to .£IOO,OOO, rml the entire "plant," previously standing in its books at ,£205,0011, was written oIF to Is. In 1917 the capital was quadiupled to JBI.GOO'.OOO, shareholders receiving a present of three new shares tor every one already held. De *]>ite its gigantic prolits the Daimler Conpuny (with other German motor works) demanded a 25 per cent, increase on all munition supplies, and threatened to close down its entire works unless increase was granted. Tho "Frai'k furter Zeiturig," which has beon crusading against the Industrial Junkers' usury, declares that the Daimler scandal, while probably tho most glaring case, is by no meaus an 'isolated one. ,