WAR PROFITS IN GERMANY

Dominion, Volume 11, Issue 254, 15 July 1918, Page 6

WAR PROFITS IN GERMANY

WRONG PEOPLE PAYING TAXES

PROFITEERING A VIRTUE (Special Correspondent of the "New York Evening Post,") Zurich, April 10. The estimates of the taxation authorises of Prussia for 1917 are not yet completely published. The partial figures given indicate an increase of the income of the wealthy classes to 10,200,000,000 marks, whioh would mean an increase of about 30 per cent, since the beginning of the war. Of course, this increase of tuzation power, though considerable, is not proportionate, to the increase of the State debt. But the above figure does not tell the whole story of war profits in Germany. In Prussia the number of persons with an annual income of moro than 3001/ marks decreased from 1914 to ,1916 by 5 per cent. In the same period, however, their total incomes increased from 7,700,000,000 marks to 8,i00,000,000. The number of persons with an income of 900 to 3000 marks also diminished, but only by 1 per cent. Their total incomes remained stationary with 18.2 milliards. In both categories one observes a decrease of the number of persons having to pay taxes; yet meanwhile the amount of money earned by them rose. "Profiteering." The figures would seem to * indicate great increase in the large incomes. What did it come from? It is a wellknown fact that, during the first three yars of war, war profiteering was looked upon as a sort of -ational virtuu in many—favoured by all authorities. Now, however, the Budget Commission of tho German Reichstag has begun to examine some cases of exorbitant war profits, and ono of. tho first was the Daimler case.

This leading film in German manufacture of motors for cars and aeroplanes is well known on the Stock Exchanges for its prodigious war profits. When the war broke out, the firm had just mado some sample motors of high efficiency. Of course, the production of sample motors is not cheap. Tho military authorities asked the firm tho price of production of these sample motors, and all the enormous orders subsequently executed sinco the outbreak of the war were mado.at exactly theso price?. Meanwhile, also, all the increase in the cost of raw materials and wages has been added to these original prices, so that at the end of 1917 the firm received, for a motor which cost them 5000 marks, 15,00*0 marks.

They make 501) of these motors per 'week. The most interesting thing is that this Daimler firm, along with Krupp and other money magnates from tho Rhineland, is a financial backbone of the ''Vatcrlandspartel." The advertisements ot Daimler can bo seen everywhere in the "Vatcrlandspartel" Press. Daimler advertises aeroplanes, and all kinds of other articles; which, however, are never bought by tho public, as tlieir sale except to the military authorities is prohibited. The case of Daimler is not an isolated one. On the contrary, it la only one of the exceptional cases, arid might never have been made public had hot a malicious competitor got hold of the figures of the cost prices. - The German Landowners. Another set of profiteers of the war period have been the largo agricultural producers, and certain current events are beginning to show on what their profits were largely based, and why they were npd are In iavour of continued war. It is the treaty with Russia which has made the trouble. To-day, trio German agricultural Press is full of letters from the junker landlords, protesting against the exchango of prisoners prescribed by the peace treaty. They declare that the. Gerr,.an prisoners released by the Russians will be lit only for industrial work or Army service, not lor agricultural work, and they all demand that the release of Russian prisoners should be postponed at least until next September; that otherwise a catastrophe in German agriculturo is inevitable.

Other letters to tho German agricultural papers point out the necessity of transporting to Germany the whole male population of the occupied territory in the East captured by the Central Powers from Russia, in order to havo cheap agricultural workmen. They claim especially that Germany's agriculture, even before the war, could not be carried on without' "season workers" coming from the western part of Russia. Now, so they argue, 'when the western part of Russia is occupied by Germany, the working class of theso countries should bo obliged to work for German agriculture.

This particular discussion in the agricultural Press regardiug the further use of prisoners is highly interesting, and may explain the roasons why German junkers have become partisans of annexation in the East. One remembers that in peace times the German junkers- did not desire any annexation, or even any Customs union, with countries producing cheaper agricultural commodities than Germany. Now, however, since the war has taught them tho value of cheap labour without political rights—in other words, of labourers that are prisoners and slaves—the junkers have changed their mind. ■ ,