According to Marx's doctrine of value and surplus value only variable capital creates fresh value and surplus value. An industrial undertaking of a lower organic composition, which thus employs much variable capital and little constant capital, must consequently create a greater surplus value or more profit than an industrial undertaking of higher composition which may employ the same total capital, but composed of greater constant and smaller variable portions than the former. Let us take two industrial capitals of L35,000 each. One expends L15,000 on the constant elements (machinery, raw materials) and L20,000 on the variable element (wages of labour). The other shows L20,000 constant part and L15,000 variable part. With an equal rate of surplus value--100 per cent.--the first capital would produce L20,000 surplus value (profit) and the other only L15,000 profit. Experience shows, however, that equal amounts of capital--in spite of temporary differences in profits--tend to produce equal profits. From this, it would appear that it is actually the capital expended and not the labour employed which determines the magnitude of the surplus value (profit), that the concrete results of the capitalist process of production do not confirm the Marxian theory of value, that the facts directly contradict the theory. It was Marx himself who drew attention to this problem. After he had constructed his theory of surplus value in the form of a scientific law, he continued: "This law clearly contradicts all experience based on appearance. Everyone knows that a cotton spinner, who, reckoning the percentage on the whole of his applied capital, employs much constant capital and little variable capital, does not, on account of this, pocket less profit or surplus value than a baker, who relatively sets in motion much variable and little constant capital." How, then, can the equal rate of profit in the case of capitals of different organic composition be harmonised with the theory of surplus value? Marx concedes that equal capital sums whose organic parts are unequally employed give an equal rate of profit, although the volumes of surplus value created are different. Two capital sums of L50,000 each, one of which, for example, represents L40,000 constant and L10,000 variable capital, and with a rate of surplus value of 100 per cent. gives L10,000 surplus value, while the other is composed of L10,000 constant and L40,000 variable capital, and with an equal rate of surplus value gives an amount of L40,000 surplus value, will nevertheless yield an equal rate of profit, although theoretically they would be unequal if the rate of surplus value directly determined the rate of profit. In the first case, the rate of profit would amount to 20 per cent. and in the second to 80 per cent. In reality both undertakings yield an equal rate of profit.