EARNINGS: The Shock of Rearmament

U.S. industry's semi-annual reports, now flowing out, show the first boosts and shocks of rearmament. For the most part, earnings are good. Of 413 companies reporting through last week, 242 record higher earnings in the first half of 1951 than in the same period last year. But many a report also makes plain the stunning impact of higher taxes and price controls.

General Motors is the most startling example. Along with other automakers, it complained against auto prices being controlled on the basis of 1950 costs and production rate, arguing that even a slight...

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