HUGE PROFITEERING SCANDAL.

Taihape Daily Times, 27 May 1918, Page 7

HUGE PROFITEERING SCANDAL.

The Frankfurter Zoitung of March. 10 publishes details of the munitions profiteering scandal, which has caused the War Office to place the great Daimler Motor Company, of Stuttgart, under military control. The scandal is now being investigated in the Reichstag. These are the most notorious facts arcady revealed: Asked by the War Office to justify inordinately high prices, the company submitted fraudulent calculations. In 1916, though tlic company’s gross capital was only £400,000, profits werCj £619,000, as compared with £167,000 in 1913. Dividends rose from 14 per cent, in 1913 to 16 in 1915; 2S in 1916 and 35 in 1917. Meantime reserve rose from £275,000 to £400,000 and the entire “ plant” previously standing in its books at £265,000 was written off to Is. In 1917, the capital was quadrupled to £1,600,000, shareholders receiving a present of three new shares for every one already held. . Despite its gigantic proifitsj the Daimler Company (with other German motor works) demanded a 25 per cent, increase on all munition supplies, and threatened to close down its entire works unless the increase was granted. The “ Frankfurter Zeitung” which has been crusading against the industrial Junkers’ usury, declares that the Daimler scandal, while prtssibSy jthe j most glaring case, is by no means an • isolated one.