PROFITS: Under the Knife

To 9,743 companies whose war contracts face renegotiation, the War Department Price Adjustment Board last week showed the razor edge of its scalpel. During the year ended May 1, PAB revealed that contracts totaling $18,500,000,000, held by 1,658 companies, have gone under the knife. Two-thirds were found to have excess profits. From them the U.S. recovered $1,866,000,000 in excess profits, almost two-thirds of it from price reductions on future deliveries.

This did not mean that they had been inordinately greedy. Commented PAB Chairman Maurice Karker: high productiveness of labor, fine supervision, improved flow of raw materials, inexperience with...

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