WAR FORTUNES

Pukekohe & Waiuku Times, Volume 6, Issue 257, 9 March 1917, Page 1 (Supplement)

WAR FORTUNES

While the Crimean War was still raging Mr. W. E. Gladstone made a statement which is peculiarly applicable at the present time in relation to the title of this article. "The practice obtaining in .all former wars has been," he said, "no less distinguished for the opportunities it afforded to contractors than for the opportunities it afforded to heroes. It afforded to herseo an opportunity for ensuring an immortality of renown, and it afforded to contractors an opportunity for erecting colossal fortunes."

Not to all trades and businesses, of course, but to numerous occupations—especially those engaged in producing the munitions necessary for the carrying on of the titanic struggle, the shipping and engineering industries, the coal trade, those responsible for the supply of our foodstuffs, etc. —the war is synonymous with wealth.

MONEY FROM MUNITIONS. There are now some 4000 controlled firms which are making munitions and doing other war work. Many millions of excess profits are being earned by these firms, due absolutely to the war, and subject, of course, under the Budget, like al! other excess profits, to the tax of 60 per cent. "Wealth beyond the dreams of avarice" has thus been placed in the hands of a great number of employers and shareholders, who probably in pre-war days were already in the enjoyment of snug, eomfortbale incomes —in many cases fat fortunes — from their various industries. If the munition workers have participated—and few will deny they have —in this unprecedented prosperity, keeping in view the enormous increase in the cost of living, they will not have such a great deal left after all to invest in War Savings Certificates or other gilt-edged securities.

Mere than any other business, it may be said, without fear of contradiction. the shipping industry lias proved a veritable El Dcrado to those fortunate individuals who have their money invested in ships. The net earnings in this lucrative occupation are estimated to have risen from 20 millions in 1913 to 250 millions in 1916.

The profits are so great that a steamer is reported to pay for ner entire cost in two voyages. I" the House of Commons last December Mr Goldstono M.P., quoted an instance which went one better. He sa : d- "1

want to quote one instance given upon excellent authority that on? :hip sailing from San Francisco wr>; <•'-?).- teied fcr £BO,OOO. Probably shears a very large steamer, and may have been in the region of 10.000 tons, but my information is that, at that rate of charter, she probably paid for herself In that one voyage."

THE SHIPOWNERS' EL DORADO. Romantic stories are related at Cardiff of the huge fortunes amass-id by shipowners and coal-owners during the war. One ship-owning firm is reputed to have made profits amounting to £3,000,000. Manv other firms have also made vast sums. One company, with five boat 3, is said to have made £1 00,000 profits on last year's working, and set aside £BO.OOO to meet excess profits tax and £30,000 to reserve. The total profits for the previous year were £15,486. In the first three months of 1916 the same eight concerns made a profit of £2,140,508. or an I increase of 77 per cent. The report of the White Star Line shows that the profit for last year, after providing a very large sum fcr excess profits tax and other contingencies, amounted to the enormous figure of £1,9G5,255. Dividends amounting to 65 per cent, have already been paid.

There is money in any "old tub" at the present time. The demand for ships of every sort continues unabated, and beats of all ages and sizes fetch highly inflated prices.

One ship, which cost £BO.OOO to build in 1912, has just fetched £160.00n, jan,d \anot:hqr. hn 1 902, has been disposed of for £235.000. though it realised only £75.000 last year, and CM 1,500 in 19113. An eleven-year-old craft which commanded £26.200 in 1914 .and £IOO.000 the next year, has now brought in £1 85.000; and a nineteen-year-old vessel which was worth £IB.OOO in 1905 and'£2B,ooo last year, has lately been knocked down for £ll 0.00«*. Ships have recently been sold iu Glagsow at £200,000 which prior to the War only cost £SO,OOO to build. EASILY EARNED FORTCXES.

The case of the "tramp" ownern was referred to in Parliament hv

Mr. Houston, M.P. lie know one, r • 1 said. who fixed four of Ins steamers from tiio Argentine on open charter of these boats re-lot that boat :.t af )("./- per ton: the charterer of on? C.*s., and made £14.000 profit. Many men who have had no previous eo;,~ ruction with shipping have found u a very pr<Citable alliance. One voung Olasgow man. for instance, was left a. legacy of Sf.ftu in I'.MI. lie invested it in a shipping concern. His first year's profits wore His second year brought him £';1~. (Mite a tidy sc.ni for two years' tra.l----i n ! Instances are also told of young clerks and others who. earning about .H a week at the beginning of the war, saw their opportunity. and invested in the purchase of old steamers. Ah a result of their I enterprise they have become coinpaI rativel.v wealthy men. residing in | country mansions and possessing 1110- [ tor-cars.

HOW SOME INDUSTRIES HAVE BENEFITTED.

BLACK DIAMONDS INDEED. Great profits have also been made in the coal trade. As .a matter of fact, the coalowners and their confreres in the iron and engineering industries are not far behind the shipowners in the enormous profits which they have, to put it bluntly, made out of the war.

Anent this very important industry, the following extract from the minutes of the War Emergency \\ orkers' National Committee. June J, 1915, possesses a peculiarly personal interest, for Glasgow people especially, as, they "pay the piper" in the case referred to.

The secretary read the following nctes of a letter received from a reliable correspondent in Glasgow indicating the difficulties experienced in renewing municipal coal contracts:

"The various committees of the Glasgow Corporation are buying for immediate needs only, as if they were to place their contracts for a year at present prices, it would mean an increased charge of £4 00,000, as compared with last year's prices for the same quantity and qualities of coal.

"The Gas Department is now in

the market for 750.000 tons, and if compelled to pay present prices, the extra charge on this lot alone, according to the manager, would be £300,000. Because of the high prices of coal, the cost of household gas is to be raised from 1/11 to 2/6 per tOOO cubic feet.

MUNICIPALITIES AND DEAR COAL. "Last year the Tram Department bought r>o,ooo tons of coal at an average cost of 10/8% per ton. Offers were recently invited for a six months' supply, and the quotations recommended for acceptance averaged 17/10% per ton, an increase of 67 per cent, compared with last year. . .

"The Electricity Committee has not yet placed its annual contracts, but .a small quantity of splint and smithy coal was bought at prices ranging from 20/- to 20/6 per ton, as against 12/9 to 13/3 a year ago. The Gas and Electricitv Departments of the Birmingham Corporation are paying .at least £200,000 more per year for coal than before the outbreak of war. The London County Council ,?s to-day paying to coal-owners increases, varying according to quality, from 9/6 to 15/1) per ton—the latter for Welsh steam, representing the difference between last year's figure of 25/3 against today's 41/-.

With prices like these operating it is not surprising that a leading Scottish coal company last year made a profit of C 59.566 on the twelve months' working, while this year's profit is reported to have reached the very handsome fig-ire of £224,058.

Not a few people—especially tholi people who are not in intimate touch with coal-mining centres and the hardy heroes who extract the coal from out of the bowels of the earth —firmlv believe that all the increates in the price of coal are due to the greedy demands of the miner. Never was there a greater mistake. The following statement is taken from the report of tfio Committee appointed hv the Board of Trade to inquire into the causes of the present rise in the retail nriee of coal for domestic use:—"We have no doubt that the rise (in price) is considerably above the increase in cost of production and distribution which can reasonably be put down to the war. The cost of production at the mire has not. on a hieh estimate. r ic -.en more than one shilling per ton. One eminent authority has stated fo n« that, that figure is preposterously high."

THE EXOIXEERTNTS TRADE. V.'lv'o the enmities of employees in ipnnv trades have increased eonsidernhlv since the w.nr—in the case c>f members of the Amaleamatel Society of Engineers it is; estimate! a; phout f2.0n0.0f10 a venr—many ennilovors i' l the same industry h' , v iron makinc: rronort'onato \Tqfltf. Even thoncli half of the o\-tsa war promts fo (o tho ptate the,--> is .a eoo'lly margin left for fir!!!". One of (he largest •• t:i!i»*"vim.t Oriiip in tho Vest of PcoM-i'vl. f->r i*<Ftnnee in 1014 showed ;> proPf of f-M.Oflfi. and in fho report for lite present venr this has hern Increased to £110.0(10. A famo"? PhofTlold <= l r>c-1 corntianv in 1014 was C 10.410 )o lVfrrd: in HUH it was C 10?,."00. »- ."•0 nor cent, on the pnid-np cardial. En "a 11 v satisfactory was the hal"i"''o ehcot of one nf the h ! r proiffl''- 1 rr.nrrrrs. With a iiont'nal eanif: 1 r.f onl ,r CI 2.400 jt ii;m dnrip r 10 1 " n\nde a profit rf Clo'i?fi —rffoy r-rnvifling for the new lover; Vpnv n'an : i factnt ,ts who formerlv ptnde .articles of Invwv have ndapte I 'heir worl<s io neee«sarv mods. "VieI ! rr.po r rnnr.nfact'irors have reaped a pinrve'it hv concentrating their' a(l<-t>- ' Mon on war vehicles instead o r nrivite cars and t'>e hrom in militarv cuifor-il|-iven vehicles ha* hern s"

'••ir.it flint nov,- works hpvr> lir n P oro'tod in (lifforru! foiifro-. One of 1 ho H<? ii;otor fimi". K-v; doplnrod *» Pin'H of C 22.! r »7 on th" l niti r"' ,f i-n ; ,r's- '■ n rn on ■ v. as a r, n I n '•"" ; n io i r. A bi:, r 1 ond'".n firm i-'o>; jji i-'vot o and moiirnine' nvitennV •iffor allowing for donroHatirn, in-enpif-tnv, oto.. nnnounoo:! t'inl it' iirofiifi for la' t vo.ir wnr" £7 1 I.r r,7. Thr;-o very finr fi?uroq woro ho*v-o-./.r. rnm-ilftolv VnooVnrl into tho livnvoi-Jlin] rooko'J i- nt (ho o'J'T (lay v-hon J. and P. Coats, tho fnnioiirs t'iro;ul-mtik( rs di c olosod vV>nt provod to lie their liudpot. For

many years past Coats (as a contemporary facetiously put it) has been regarded as synonymous with heavy chunks of gold, imposing mansions on the Firth, and palatini steam yachts. The tradition was well maintained with the recent announcement that the year's profits had reached the stylish and record amount of £3,387,395. How much of this truly extraor-

dinary sum is due to war work we will not attempt to estimate: the problem is respectfully left to our readers —it will probably be all that will be left to most of them'.