The Athena press. [volume] (Athena, Umatilla County, Or.) 18??-1942, 1917-07-06
BIG PROFIT CAUSE
. OF HIGH FOOD COST
Photo BY American Press Associp ton.

The law of supply and demand and
the laws Of competition having broken
down under the unusual conditions of
war, cooperation is the principle that
must be applied, but applied under the
supervision of the Federal Government,
if the United States is to carry through
this war successfully, is the idea, OF
Mr.. Van Hise, the official representa-
tive of Herbert C. Hoover, chairman
of the Government Food Conservation
Commission.
'It is apparent that the law OF
supply and demand as a reg ulator OF
prices has absolutely broken down in
this crisis" he says. "It is fetish,
which may work in time of normal de-
mand and supply, but not when there
| is an excess demand for all essential
commodities.
1.-THE tendency to increase prices,
once started, is cumulative and the en-
hancernent of prices goes on with
| increasing velocity. For fundamental
products, as wheat, corn, coal and
| iron, due to the unreasonable profits of
the producers or manipultors, or both,
prices are beyond all reason; and the
public is being subjected to gross ex-
| tortion.
''There is no sound reason why prices
for almost all standard articles should
be double what they were year ago,
and for many Of them treble what they
were two years ago. The demand ex-
cceds the, supply by moderate per-
centage; but SO futile has been the
principle Of competition to control the
prices when united with cooperation
of the producers to control the market
and the cooperation Of manipulators
that prices have soa red toward the sky.
| II do not blame the individual pro-
ducer foI, this. blame the system.
1t is to be assumed that the producers
will get all the profits they can. There
has also undoubtedly been cooperation
for the purpose Of controlling the mar
ket. j,
"We have had the Sherman act or
the Statue books for 20 years and il
has proved absolutely futile to prevent
cooperation in the enhancement Of
prices. At the same time we have
tried to prevent co operation in indus
try we have enforced cooperation
among the railroads through the Inter
state Commerce Commission. One Law
to prevent cooperation and another t
enforce it!
"The fact is that cooperation is in
evitable under the conditions that ex
ist today. There is no law which car
prevent it because it is so much more
profitable to cooperate than to com
pete.
"But If cooperation in business is t
be allowed, with it must come regula
tion. The war has tremendously &C
celebrated the movement for regulation
"If we are 70 win the war we cal
not expect the people to continue t
suffer the extortion they are being sub
jected to now. Already there is discon
J tent among wage earners.
Besides the eontrotof prices, tn
Government must be allowed to dictat
priority of shipment and Of manufac
ture. In England no contract can b
filed without an order from the prior
ity board.
"In America there has been frenz
! of buying far ahead Of actual needs
This is one cause Of the enhancement
h of prices.
II 1t can be overcome to some exten
H by campaign of education but that
H not sufficient. II priority boards Q
H the sort which | have described ca
control distribution, this boarding Q
II supplies can be overcome.