New Britain herald., 1918-08-14
Honest Profiteering.
Minneapolis Bellman.) )


 Minneapolis Bellman.) It Is interesting to note the power of & phrase, once it has become firm ly established in the public mind. Prior to 1917, the word "profiteer' was comparatively unknown in this country as signifying a person of criminal intent who desired to take advantage of war conditions and his felloW-men in the making of excss- sive profits. It became popular i'll newspaper use, reached the public, and about the time it was becoming hackneyed elsewhere arrived in Washington, where it was eagerly seized upon by certain congressman and federal commissioners, who have since been working it overtime for sentimental purposes of their own.
 The federal trade commission in a recent sensational report, has praC- tically denounced members of several industries who thereby have been placed upon the defensive for no reason except that, according to the peculiar ideas of the commission, they have of late made too much money.
 In an open letter to Senator Sim mons, MT. Hoover, the apostle of
  this policy, and his warning is very timely He said that the country is short of most commodities today, and it is necessary to stimulate produc- tion; normal profits are not at all immoral. Low profits he declared, would drive many producers from the field and would have the effect of decreasing production of the very comm odities in which there are now large shortages.
 Tn the advancement of regulatory measures or the formation of trade agreements affecting profits and prices to the public and to the gov ernment," MT. Hoover said "all off, cials are under great pressure to keep margins at a very low ebb. The ten dency is to be too narrow in such negotiations and to endanger pro- duction.
 Furthermore, in an effort to pre- vent protiteering and secure the best terms, these arrangements are ela- borated to cover all sorts of condi- tions, and the economic reactions from this materalism are often bad; If there were a strong excess profits tax on war profits, all these measures could be formulated with a broader hand and real reduction of govern ment interference.
 At the same time, MT. Hoover de- clared that extra profits out of war are hateful and in order to prevent them, he urged that they should be applied to the public treasury through taxation, This is a sensible solution of the problem, which will commend itself to the public as we'll as to the business world.
 No honest and conscientious man of business-and the vast majority of American business men are such-de- sires to make abnormal profits during this war; the thought is repellant to him. At the same time he dares not proceed in business on a margin SO close as to endanger his continued sOlvency. To strike the exact happy medium required to perpetuate his undertaking, make a so-called "legi- innate" profit and avoid the appear ance of protiteering. is not so easy as the layman imagines; in fact, it is practically impossible, owing to seasonable changes in trade. the risks of collection and the general uncer- tainies incidental to war.
 Business should be encouraged to make healthy profits profits large enough to stimulate enterprise and develop the utmost production. By making 1t the active partner with Uncle Sam through the return of excess profits in taxation, it becomes a most important supporter of the war, and a vast contributor to the Country's revenue.
 Such a wise and intelligent policy should be adopted in framing rev. enue legislation; it will strongly ap- peal to all save pin heads and poll parrots obsessed and fascinated by inc word "profiteering." and unable 10 see why large profits honestly, straightforWardly and openly made, help the country as a whole, and vastly aid the government in it's great war undertakings.