Denver labor bulletin., 1918-08-10
Especial Correspondence.)


WASHINGTON, Aug. 5.-Where
does all the profiteering money go?
This question has just been answered
by Daniel c. Roper, commissioner OF
internal revenue, in report to Con-
gress which shows that almost in the
same proportion profteering has
grown the number of big incomes
have increased. For example, in 1914,
according to the income tax returns,
there were 8,672 incomes of $4,000
and $25,000 year, representing for
tunes of $4,000 each; in 1916 there
were 1888. Incomes of 100000 to
$3.50, 900, representing fortunes around
$5,000,000, increased in number DUR
ing this period from 233 to 726. For
tunes of S10,000,000 increased from
SO to 245; fortunes from $10,000,000
to $40, ,O00,0 900, with incomes of half
to one million dollars a year, increased
from ia to 376; fortunes above $780,
900 900 increased from 60 to 206 in
these two years.
Analysis of these figures shows that
while men of the half million dollar
class increased in numbers 49 per
cent, the millionaires of $5,000,000
and over increased in number as we
ascend to the Millionaire class, re-
spectively, 211, 255, 230 and 243 per
cent. In other words, profiteering is
making millionaires much more rap
| idly than it is making men of mod
crate wealth, and there were over
three times as many men owning over
SIS 900, 900 in 1916 than there were in
1914.
PrOfiteering Hurts Farmers.
The United States department of
agriculture has given out the infor-
hot in, nil
and steel is the main excuse given by
manufacturers for the doubling and
trebling of the price of farm imple-
ments. In fact, it is stated that the
producers of these raw materials are
charging such high prices that it is
doubtful if the licensing system re-
Gently inaugurated by the admins
tration to control farm machinery
prices will have much effect.
Julius Cook, head of the office of
farm equipment control, who is after
the profteers, reports that the cost of
pig iron to the manufacturer has ad-
vanced since 1914 from $12 and S14
to $50. Other raw materials entering
into the manufacture of farm imple-
ments have advanced almost in the
same ratio. The idea is gaining
ground very rapidly that if the depart
ment of agriculture is to really lower
farm machinery to farmers in the
present crisis so that food production
will not be hampered, it must buy the
entire output of farm machinery at
prices based in each plant on the cost
of production. Then it must pool this
output and sell it at an average price.
If the American Harvester Company
tries to block this program it would
be necessary to take it's manufactur-
ing plants over and that would give
Uncle Sam practical control of the
production as well as the distribution
of farm implements.
Price Fixing Helps Trusts.
A startling fact brought out in the
recent report of the federal trade COM
mission to the Senate on profiteering
was that government price fixing has
served as cover for the big profit
eers who produce at low cost and sell
at the maximum prices fixed by the
government. In establishing prices
the government was obliged to fix
them at level which would enable
the less poorly equipped and efficient
companies to exist. This left wide
margin of profits for the low cost COM
panies and they took full advantage
of it.
From this the commission concludes
that the fixed price system has pro-
duced ian economic situation fraught
with hardship to the consuming pub
ilc," which will gradually enable the
low cost concerns to absorb their
smaller competitors. 1t all comes
down to the proposition that in fix
ing prices the government cannot pre-
vent the big trust from asking huge
profits so long as it permits the small
er concerns to make any profit at all.
The onlv way the cost of living can
be lowered to the people is for the
government to fix prices based on the
average cost of production, otherwise
the only alternative is the method en-
ployed so much by the warning nations
in Europe-government production
and distribution of the basic war ne
cessities..
Bill to Help Farm Women
Every farm man and woman in the
nation ought to get behind and urge
the passage of bill recently intro
duced in both branches of Congress
by Miss Jeanette Rankin, member of
Congress from Montana, and Senator
Robinson of Arkansas, designed to
safeguard the lives of mothers and
babes at child birth who live remote
from towns.
Over $4,000 American women die
every year at child birth and most of
these are women who die from lack
of proper instruction and attendance
because they live too far from proper
help. Hundreds of thousands of other
child births result in weak and nerv-
Gus children from a proper lack of
Lpnu,1adUa apd attapfiop opd farm