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He Was
A Generous
Employer
WASHINGTON. — The
Government and the
people had made a tacit
covenant that no one
should profiteer from the
war. j
Last week the House Naval
Affairs Committee began looking
for war babies who might notj
have heard about the pact. It
is necessary only to look at the
quotations on the New York Stock
Exchange Hov^est in seven years)
to see that business as a whole is
nof profiteering. But there are al
ways exceptions. Certainly no
party to any non-profiteering cove
nant, written or tacit, was Jack
and Heintz, Inc., of Bedford. Ohio.
manufacturers of aeroplane star
ters.
Plump Adelaide Bowman, who
was -only the boss's secretary, tes
tified fhat she had received
£7,850 in salary and bonuses last
year. In return: 'I just work.'
She took some worries off the
boss's mind, Miss Bowman ex
plained, and added: 'He's generous
and the most wonderful man in
the world.'
Everybody Happy!
President William S. Jack was
generous. Starting in 1941 at
£5.000 a year for himself, Mr.
Jack got £30.000 before the year
was out. His basic pay and the
basic pay of son William, jun..j
and of Ralph M. Heintz '(co-i
owners). £20.000 each. 'We were;
only making sure fhat we wouldn't
go broke,' explained Mr. Jack.
No one went broke at Jack and
Heintz. The assistant controller,
who had left a £460 job. got a
salary of £950 and. to his 'com-
plete surprise'' a bonus of £2.000
after less than two months. The
controller got a £1,500 salary;
with bonuses made £5.000 in
1941. Other employe bonuses,
records showed, added up fo some
£120.000. Mr. Jack held monthly
banquets, gave double-time pay;
for Saturdays. Last Christmas;
everyone got a wrist watch, a ,
£500 insurance policy, and cash
presents ranging from £20 to
£120.
120% Profit!
But J. & H's. generosity stopped
there. The company had received
a £800.000 Federal loan to get
started making aeroplane self
starters for the Army and Navy.
But when the Navy asked it to
reduce the price on a second con
tract, pointing out that J. & H.
was now in mass production. J.
and H. refused. Cost of making
the starters the company later ad
mitted: £54. Price to Govern
ment: £120. Profit per starter:
£66. Revenue lost to the Govern
ment in corporate income taxes
as a result of bonuses: £150.000.
The company reported that its
net profit was only 10 per cent.
'... Disallowing exorbitant
salaries, bonuses, and similar ex
penses.' said dry. wry Commit
tee Counsel Edmund Toland.
'these profits would be about 100
per cent.' He noted that the firm j
had invested £180.000 in defence!
bonds, observed: 'They are buying'
Government bonds with Govern- '
ment money.'
Bill Jack, far from chopfallen.
announced a new policy: a refund
to the Government of profits ,
above 6 per cent.: no more execu- !
five bonuses, and no dividends for
the duration.
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