South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-01-03
M|DDLEMAN To
co IN AUSTRIA
Held to BE Minus Quantity in
Facilitating Distribution
of Necessities.
Assoc.a 49, Press servIce

Associated Press Service:
VIENNA. Jan. 3.-Further meas
ures for the elimination OF the
'middleman whose participation IN
commerce does not add 70 the value
or facilitate the distribution of ne
cessities'' are being adopted through
out the Austro-H Hungarian monarchy.
Not alone are new laws for this pur-
pose being enacted, but the provis-
ions already made by the civil and
military bodies are now being en-
quarter 10 offenders.
Laws in force and in the course
of enactment provide that nobody
within Austria and Hungary may buy
an article of necessity and then sell
il again for the sake OF personal
gain. This affects transactions in
foodstuffs especially. When the
European war broke out it was
found that there were many who
wished to profit by it through the
"cornering'' Of certain supplies. In
little time the cost of living went up
alarmingly, increases ranging from
so to 400 per cent. To curb this tend
ency the government itself took such
action as its power and scope per-
mitted 1t was found. however. that
the legislative bodies of Austria and
Hungary had to act in the matter.
Suitable laws were adopted, and
these are now being so applied as TO
close the loopholes which various &C
tiOnS at law have disclosed
A recent ruling in an Austrian SUI
perior court in this city is of inter
est, because il shows both the letter
and spirit of the "anti-speculation
laws" which have been adopted.
In this case three Galicians had
bought a relatively small quantity of
foodstuff, mostly grain. At the trial
il was shown that the three dealers
had sold the articles again in the
same town, in one instance wheat
had been re-sold to its original
owner. A profit had been made. and
a slight increase in the price Of food
made from the articles in question
had resulted, il was proven.
Ruled Offense.
The court ruled that under the
law this was an offense, because the
sale and resale of the articles had
been made by the defendants with
a profit to which they were not eH-
titled, having added neither to the
value Of the articles nor facilitated
their distribution. They had, in fact,
found the judge, rendered distribu-
ton more difficult by holding the
articles for a certain time.
The defense was that the accused
had acted within their constitutional
rights by buying and selling as they
had done, and that they had not
hampered distribution, because they
had at all times been ready to sell.
But the prosecution obliged the de-
PENDANTS TO make the admission that
they had held for a higher price,
whereupon the court found that this
was now an offense. because to hold
necessities for the gaining Of profit,
through the operation of the law Of
supply and demand" was illegal.
Heavy penalties of Imprisonment
and fines were imposed upon the
three dealers.
Austria did not always have such
law. Taking this view of economics
is distinctly a result of the war-the
spirit that nobody shall gain at the
expense of the other when the
other" is likely to be at the front
risking his life for his country and
leaving his family in Strengthened
circumstances, perhaps
Dangerous Enterprise.
To deal for profit has become a
very dangerous and improbable en-
terprise in Austria today. But the
Hungarian government, which hith-
erto has not been obliged to concern
itself much with this problem, is also
beginning TO act. Hungary has
greater food resources than Austria,
and, for this reason, spectators
have not found so good a field there.
Foodstuffs have been so relatively
plentiful there that so far, for in
stance, il has not been thought
necessary to regulate the consump-
ton Of bread by means of a bread
card, almost universally used in
Austria.
Contrary to opinions generally
held. in interior affairs. Austria and
Hungary have nothing in common.
On this account, Hungary is now
improving her own "anti-specula-
ton laws"
Before the Hungarian diet, now
in session, is a bill, introduced by
the Hungarian minister of justice,
according TO which no person out
side Of trade or industry, or with
out the special permission Of the au-
thorities. may buy or sell, for pur-
poses of gaining profit through
speculation, any foodstuff or other
necessity of life. This means that
only miller may buy grain and only
baker -four. and then no more than
what he Will need for the require
ments OF his own business. The bill
which IS sure to pass, provides a
maximum penalty Of two years i'm
prisonment and a fine Of 10000
crowns. Another bill, from the same
source. provides for a penalty Of
three years imprisonment and a fine
OF 10000 crowns for the person who
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