The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1917-10-06
BUILDING FOR THE FUTURE.

The information WniC2 the govern
ment is getting in pursuance of its
work of fixing maximum prices for
essential war products will stand it
in good stead, in the days. to come,
when it shall set out, as it will very
likely have to, to force the general
level of prices down to the require
ments of conditions which will not
tolerate any artificial imitation Of the
cost Of living. Heretofore the thing
which has probably embarrassed the
government most in prosecuting its
antitrust suits is that it has seldom
been able to offer anything like CON
elusive evidence to prove that the
acts it has complained of put injus-
tice or hardship on the public in the
way OF excessive prices. Of course.
the Sherman law very little, if at
all, considers the practical effect OF
the acts Of which it complains, a bit
Of purblindness which has seemed a
fatal defect to many. If it does not,
courts and jUries do, more or less
covertly; with the result that the alb
sence of proof that the acts complain
ed of were for the purpose and with
the effect of enforcing eXo1bitant
charges, has won an acquittance or at
least highly mitigated sentence. for
those accused. And the government
mas seldom been able to prove such
a complaint. 1t has been hopelessly
handicapped. 1t could offer some gem
eral considerations to support it's
charge of eXtortion, but usually the
defendants have been able to refute
these with facts and figures" The
government might be morally certain
that these facts and figures were
largely fctions and figures, but it has
seldom had any information with
which it could substantiate its belief.
1t is just this information which it
has been getting to make the bases Of
its price-iiXinS and agreements. Wish
Ing to put prices high enough to be
stlmulative of production and yet low
enough to prevent exploitation of its
war necessities, ii has been necessary
to determine all tie elements of pro
duction cost Only by getting these
facts could it put prices at levels
u oh would lcavp On aJlrt,a+- ,,,,oG4
margin. OF course the elements of
production cost are variable, but the
relation between them and fairly
profitable price is not. Hence, the
knowledge of how much the labor
cost and the raw material cost con-
tribute TO the expense of production,
VIII remain useful data, however
much these costs may vary in the
future, With these facts in hand,
something like a formula can be made
that will serve as d kind OF touch
stone to prices. 1t would be too much
TO expect that, by using it, the legiti-
macy OF prices can be determined to
a nicely. But at least it will have
the virtue Of disclosing any exorbit-
ance that may Turk i'll them. Such in
formation, too, will afford something
OF criterion by which to determine
the business, or lack of it, of wage
OF course the government cost in
Quiries have lot as yet entered into
industries extensively enough to
make the knowledge gathered CT any
very general use. But this knowledge
must increase steadily as the war con
tinues; and it may become extensive
enough to affect all the basic ones.
such as the coal mining, steel making,
flour making, meat packing and sugar
refining industries.