The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-08-20
COMMUNICATING AND A
"FAIR PROFIT"

~ With the government just entering
on a policy Of Communicating the
necessities of life, most far reach
ing decision must be made.
r To consider only the interests Of
the consumer would mean the para
living Of business. Business, big
business and little business, much as
Il has been maligned, must pay the
greater part of the taxes for the war.
Business must be permitted to pros
per and expand.
To consider only the interests of
the producer, means exorbitant
! prices for the consumers-prices
which the present scale of wages
will prove totally inadequate to
meet. It will necessitate a readjust-
ment in wage scales, and possibly
, in the interim, strikes, riots and end
! less labor troubles.
Coal, apparently, is to be the next
commodity to attract the attention
OF the federal government, and with
in a few hours the administration
, may announce a policy for taking
! over the coal industry Of the coun-
try, much as it has the grain trade.
The coal producers Of the country
have fewer friends among the con-
sumers, than any other heads of big
business" and they have earned
most of the odium which attaches to
; them. They have pursued a deliber-
\ ate policy of charging "all the traf-
fic will bear" and have so admitted
in letters which have been made
public In government Investigations.
The natural tendency would be to
{ punish" This is not the time to
punish" any business, but a time
!. 10 encourage 1t. The coal producers
{ are entitled to a fair profit" as we'll
az the farmer. That should be the
basis for price fixing, not present
{ market values.
4 The farmers of North Dakota
should not demand SO wheat or $3.50
i wheat because that was the market
i price when food administration
plans were announced, but because
such a price is needed to give them
4 a fair profit on the basis of this
syear's crop, and the cost of their
necessities. Next year, if there is a
bigger crop, a price of 50 might re-
turn the same fair profit.
II the claim is made on the basis
Of the market price, the coal pro-
sducers might well claim that the
lprice of $12 for coal in Fargo should
acontinue. The steel interests. when
stheir turn comes, might insist on
1900 a ton for their product on the
basis of the present market price,
But in both cases. these prices al
fiow for more than a fair price," and
fthe producers themselves admit it.
No coal producers would go out OF
business If the price of coal were
cut literally. There are farmers
Hundreds of them in this state. who
would go out of business il they get
but 50 for their wheat. Those with
big crops will be caught by the in
come tax with SO wheat, and rightly
$50.
To make the market price the
basis of communicating would make
communicating a farce. There must
he a reduction in prices If the con-
sumner is to benefit, and the reduc-
ton should be made to the basis OF
fair profit.
There is no shortage of coal and
iron to restrict profits by restricting
the volume of business. On the con.
trary production is increasing By
leaps and bounds, and on top of the
bigger volume of business come
bigger prices. There is a reduction
IN the wheat crop below normal
The Increased prices are needed t.
return a fair profit on the basis o.
greatly increased operating costs
and reduced output
On the basis of a fair profit tn,
farmer can consistently advocate
$3.50 to So wheat, and reduced prices
Tor coal.
on = basis Of market price" h,
annot.
On basis OF fair profit the con.
sumer would be taking the neces,
sary gamble on the weather along
with the farmer.
The price fixing problem offers ar
Endless maze. once it Is entered up
on. and there is but one course tC
ollow. That course is not the pres
INT market price. nor the wishes Of
ne consumer entirely, but the mid
ne course OF fair proft' based
ia resident Wilson's definition Of the
erm.
Nor is fair profit" merely q
Mythical term. glittering general.
ty II can bearrived at in any bust.
less and In its federal trade com
mission the government has the ma
.hinsry Tor arriving AZ It.