Prosperity But No Profits The Buyer as There Will Be

By Alerander

Well as the Seller, May Be a "Profiteer." " Business," BLtt IV o Profits, W ithout Ethics.

C. Brown, President Tlte Brozun Hoisting Maclilnery Company, in Nation's Busi,ness

If a dozen men were asked to write their definition of a "profiteer," their definitions would all dift-er widely, but without exception all would agree that to be a "profiteer" one must unfairly profit by selling something for more than it is worth, no matter what that something might be-goods, services, real estate, securities,

But what about the "purchasing profiteer?"

Profiteering in the War

During the great war, talk regarding profiteering was greatly exaggerated. Such profiteering as went on was so despicable and unworthy that the f eeling aroused against it lef t the impression that there was a great deal more of it than was actually the case. As a matter of fact, the great majority of companies dealt with their customg;5-r^i hslhsy Government or inclividuals-fairly and with due legard for business ethics. It may perhaps be a f air generalization to say that the bigger the corporation, the more apt it was to be free from tl-re stigma of profiteering.

The heads of the majority of large ar.rd small companies alike very generally insisted that their sales be conducted or-r an ethical basis and with fairness to the purchaser. The purchaser was at a disadvantage due to slrortage of supply. But, except in a minor- ity of cases, he was f airly treated, and receivecl value f or rvl.rat he paid.

If, then, the heads of these companies, and particularly the high executives of the large corporations, were so solicitous of not being classed as profiteers in their selling practices, why are they now so unconcerned when their organizations are coming to de"Industries mahing abnorm.al profits have done so by taking undue advantage 'of the misf ortunes of the industries from whom they buyl' Thi,s is the way C. R. Macairley lictures the situation.

serve the title of "purchasing profiteers?"

For two reasons. First, the more charitable one, they do not realize and therefore do not sanction what is going on in other parts of their organization. Second, although iealiiing the coercive methods of purchasing that are being employed, they do not znalyze them impartially, nor do they apply the same ethical standards that they apply to other phases of their business.

But, if in times of shortage of production one is considered a profiteer u'ho takes advantage of the shortage to sell for more than goods are worth, why is he not equally a profiteer who in times of overcapacity takes advantage of the surplus to buy for less than goods are worth? T'he law of supply and demand applies in either case, of course, but u'hy sl-rould not the rules of busineess ethics equally apply?

New Class of Profiteer

There is a steadily grorving feeling among the nany sufierers from the present "prolitless prosperity" in industry that largely those industries making abnormal profits have made their showing through taking undue advantage of the rnisfortunes of the industries frorn rvhom thev lruy. The rrisfortunes of surplus capacity, surplus production, and snrplus stocks has l>eerr too tempting for the "purclrasing profiteers" to resist.

Overcapacity ar-rd competitive conditions have provided an easy training course for the "purchasing profiteers." But quick to learn, thcy have cleveloped su.ch proficiency in the art of coercivc purchasing that they extend the "profitless prosperity," for rvhich they are responsible, to industries not suffering frorn surplus production, but which are runr.ring to full.capacity. This is well illustrated in an article from the Daily Metal Trade, (Continued on Page 12)