New-York tribune., 1918-06-12


has decided to abandon all price
fixing is one which must be classi-
fled as important, if true" APP
parently, however, it is without the
slightest foundation. Economists
are generally agreed that price fix
ing is uneconomic because it tends
to retard production, and there was
consequently widespread and bitter
opposition to the proposal when it
first came up for consideration. But
the government accepted the plan in
the face of all protests, and there is
nothing other than mere Wall
Street gossip to indicate that there
is any intention of making a radi-
cal change in its programme. More
over, it is by no means sure that
it would be wise to do so at this
time. Until the new tax legislation
is completed it would perhaps be
better to hold prices in check; after
ward, If the most extreme tax pro-
posals are adopted, change Of pol
icy might be essential in order to
maintain production. Meanwhile,
there is every reason why prices
should be readjusted on a reason
able basis in some industries which
are now suffering because the
prices fixed by the War Board are
too low to permit profitable opera
ton. This is especially true in the
copper trade. A number of mines pro-
ducing at high cost have been forced
to suspend production because they
were losing money with the metal at
231a cents. 1nasmuch as the i'm
portant thing is to get all the cop
per possible In order that there
may be sufficient for war needs, it
seems apparent that readjust
ment should be made which would
allow high cos. producers that have
been compelled to shut down to re-
sumo work.
In connection with the news that
local bankers are to confer to-day
with the War Finance Board on the
question of public utility financing,
we recommend the reading Of a let
ter on this page from an officer of
one of the leading investment bank
ing houses specializing in public
securities. AS he says, public utili-
ties are essential to the prosecution
of the war, and yet their solvency
is threatened by two conditions for
which they are in nowise response
bic, namely, the increased costs of
operation and inability to secure
funds through the normal channels.
utility companies which would
have been bankrupt had there been
no war;" says Mr.. Wilcox, care not
entitled to consideration because
war conditions exist; but public
utilities which, because of the war,
are unable to maintain their eff
cheney and their solvency must be
protected as a war measure.
Neither the bankers nor the invest
ors of the country can assume that
costs of operation will not be
higher or that rates will be in
creased to offset higher operating
costs. The banks and trust COM
panies of the country, whose SOL
vency is so necessary to war financ-
ing and the country's financial sta
bility, cannot be asked or permitted
to lock up their funds in securities
at least temporarily unmarketable." >"
That, it is understood, is precisely
the point that will be made by
bankers in to-day's discussion. AS
long as municipalities refuse to
grant the higher rates for services
made necessary by inflated costs, it
is doubtful if the banks will be will
/ ing to take the risk that would be
| involved in investment in securities
of this character. Certainly it is