New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-23
Excess Profits to Come
Next; Price Fixing Not
Opposed
what Big Incomes Must Pay
Bv c. w. Gilbert

WASHINGTON, Aug. 22.-The most
,-r,sssiye thing that has happened IN
Wellington in a long time was the
.,,,;nous vote in the Senate to-day
q, the Gerry amendment TO the war
avenue bill raising the taxes on large
;,,ones. The men who voted for
81 per cent tax on incomes over Sl'ooo'-
400 we're among the most conservative
!, this country. They were the repre-
,.n,,,ives Of big business. Their vote
tollowed an announcement by Senator
Io5re that we should soon come to an
excess profits tax of 60 or so per cent
!, followed also President Wilson $
drastic action in fixing a price Of 81
,Op for bituminous' coal.
We have entered into the second
,,,,, Of realization Of what this war
n,ps The conscription Of wealth
h, begun as it was predicted in these
,sv-ns it would begin when Secretary
p,Asoo went before the Senate Fin
; Az, Committee a short time ago with
N Information that about s6,OOO'OOO'-
~ additional moneys would be needed
isr war purposes.
Apparently, II you may Judge rom
he votes in the Senate to-day, wealth
viu offer no more objection TO beng
snscripted than have the young men
A. the land offered TO their conscrip-
don. You hear murmurs from the coal
men who have just felt the heavy hand
n price fixing, but they are merely
nurmurs; nothing is likely 10 result
from them.
Rig Business Has Been Waiting
Big business has been waiting to
lrow what was expected Of it; waiting
10 be assured that wealth everywhere
would be treated alike. It is becoming
plain what is expected Of it. There Is
little doubt that it will be everywhere
md equally conscripted. An unques-
tening acceptance Of the situation IS
expected by every one here VINO IS
tsysloping the governments policy.
What that policy will be is made clear
Nvkst Mr. Wilson has done in regard
assl. Coal, being the subject Of leg
ssasn, stands upon a different footing
hSa the other war commodities, but
sssi the coal producers consent TO per
isrS. the other producers are expected
Hquiesee in voluntarily.
price will be fixed for each war
ssznodity. II will be fixed by the
President himself after the Federal
Iade Commission has reported upon
ssis That price will be high enough.
a the Presidents judgment, 10 yield
's'Snsble profit to producers, but, to
sf'f from the price fixed for coal, it
III Be q low price.
the steel price is fixed in proper
''n 70 the coal price, billets will be not
sata above $50 a ton, and rails and
Yates between so and $50 a ton. And
y excess profits Of the producer so
Aofsbly situated as TO make large
F'sn even al the price fixed by the
e'srnment will be taken from him in
~ f'rm Of heavy excess profits tax.
Single Price Rule to Prevail
me proposal was made by the Fed
"a Trade Commission that cost plus
f'sshisge Of profits should be paid for
"a and then that the output should be
,''iso and sold At an average price. In
- Say eaen producer would receive
hne profits. and an especially low
e could be made 20 the public. But
poleeiion that the mechanism re-
.fto Tor such a plan would be enor-
Ss prevailed, and the President has
IIsa NAT even on coal single price
b made.
ne same rule will certainly be
ssPsc IN other commodities. And
- pish. 70 make IL work equitably,
s-io Us corollsry, an excess profits
hst vii take away the advantage
80 SS coat producer. The relation
80 senator simmons. the Admins
.shs representative in financial
ssf', bore % the Gerry amend
AZ evident enough on the floor TO
80 indicates Mr. Wilson's intention
.shsefipt wealth. High excess prof
NAss are the next step.
/, ~ ~ AdministTstiOn has no authority
law 70 ~ prices for the public
=, Nhsr var commodities than coal
the one here expects any resistance.
~. big business did not recognize
ss.is ssitabFity of the situation. what
~. es The advantage Of Gghting for
49, b'iltge 70 charge % the public
81 70 turn the gains over later 70
r.E',srhmsnt In the form Of excess
WI Not Provoke Trouble
a.. vi come with 20 much better
4 Titld 70 she President and sell
1