EARNINGS: The Party’s Over

The upward trend of profits since 1938 is over. A National City Bank compilation of the first-quarter earnings of 150 manufacturing corporations proved what was long suspected: war taxes have overtaken war prosperity. Sales of the 150 were 26% ahead of the first quarter of 1941; but profits after taxes were 16% less. For 77 of the companies, Federal income and excess-profits tax charges rose from 48% to 73% of operating net.