The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-01
JUMP IN TAXES
PLANNED TO HIT
PR0FITEERING
Some Senator'S Say Trade
Commission Reveals
Laws Weakness.
COORDINATION LACKING
Borah Believes Tax Makers
and Price Regulators Must
Work Together.
COORDINATION LACKING
Special Despdtch to TIE Sus.


wAsHINoroN, June 3o.-Greater CO.
ordination between the price fixing and
taxation programme of the Government
Is almost certain to result from the dis
closures made in the report of the Fed
eral Trade Commission on war prohteer-
ing. The need of such coordination has
been shown by some OF the stupendous
profits reaped as the result of fixing
prices largely on the basis Of the highest
costs of production, according to the
opinions Of Senators and others given
to-day.
Al the time the Government first
started to fix prices many here in touch
with the matter believed that profiteer-
Ing was bound to result unless the war
revenue bill was framed largely as a CO.
ordinate measure and with the idea Of
levelling profits through the imposition
of taxes on a scientific and systematic
plan.
The price fixing plan initiated by the
War Industries Board last summer
under Chairman Scott had two principal
objects-the stabilizing of prices and
assurance Of maximum production. Rec
ognizing that to preclude any curtail-
ment of production it was necessary to
Ak prices based on the highest produc-
ton costs and that this would mean
large profits for some manufacturers
whose costs were low compared with
some competitors. it was the idea of
men like Director clifford Of the Council
Of National Defence and other trainers
Of this policy that an excess profits law
could be framed that would In effect
reduce all profits to a common level.
Accomplished by Great Britain.
1t was pointed out that Great Britain
had framed her tax law to meet her
price fixing programme and had virtual
ly accomplished this
Those who initiated the price fixing
policy of the Government are charging
| therefore that much pronteering shown
must be laid to an unscientif1c tax law
rather than to wrong price fixing
policy.
After a second day review of the re-
port Senators and members OF the House
who think consistently on questions OF
economics incline to the opinion that
little II anything is in the report which
| discloses criminalty or fraud. 1t Is
remarked that tre report itself only
hints at the suspicion OF fraud and
| falsification OF receipts and expenditures
by concerns engaged in the various In
dustries. While there will be prompt
demand for elucidation OF the suspicious
of the commissioners, it is not expected
| that immediate developments looking TO
the prosecution of producers, manufac-
turers or purveyors will result.
, On the other tand, 1t is certain that
many Of the discoveries made by the
Federal Trade Commission will furnish
material upon which to base the redraft
of the excess profits sections of the reve-
nue. laws. IT will mean that tie pro-
ponents of larger conscription OF
wealth than that provided by existing
statutes will have a great advantage in
the arguments they will have to pre-
sent when the new revenue bill Is under
consideration.
Backing for High Tax Advocates
1t means also that tie trainers of tht
new law in the Committee on Ways ano
Means in the House and the Finance
| Committee In the Senate Will have pack
ing for their arguments for advancing
the excess profit rates and the income
tax rates along the lines sketched b,
tie President in his address to Congress:
on the need for a revenue bill at thu
present session and more definitely pre-
sented almost year ago by the ther
such radicals as Senators Borah Uda.)
Republican; Hollis On. H) and Under