The Bridgeport times and evening farmer., 1918-07-16

shallow criticism concerning profit eering-a term which has not yet been satisfactorily defined and which is of ten carelessly used. ProfiteeEing is both a moral and economic issue, and it is frequently impossible to draw the line. That any concern or indi- vidual should exact exorbitant profits out of war transactions, or take un- scrupulous advantage of the nations need, or exploit food, clothing or oth- CT public necessities, when hundreds of thousands are making every pos sible sacrifice, even to offering their lives, is abhorrent to every fairmind-' ed and patriotic impulse. Such con- duct depends mainly upon the individ- ual, and Is fortunately rare. It is difficult to decide where profiteering begins and ends, much depending up- on circumstances. For unusual profits during the war there is often ample defense. Risks ore unusually great;
 heavy temporary expenses are often incurred; plant depreciation is exces- sive; quantities of equipment are quickly scrapped; great waste is often inevitable and inducements must be made to stimulate enterprise; all of which tends to demands for high prof | it's if such industries are to be ade- quately maintained. There is an- other justification of high profits, and that is their source of public revenue through taxation. In no better way
 can the money to carry on the war be obtained. It insures an indirect
 and unfailing source of funds for the
 Government. The large profits in
 steel, copper and many other indus
 tries are a prolific and reliable source
 of revenue, and by utilizing these the
 drain comes heaviest where the sup
 ply is greatest. Taxing excess profits
 Is much wiser than Government ownership because 1t automatically
 adapts itself to fair methods; and
 where there are no excess profits the
 supertaxes do not apply. Moreover
 the permission of excess profits is jus
 tified on both moral and economic
 grounds. In the first place the Gov
 ernment takes the excess, so there is
 no profiteering; and in the second place enterprise Is stimulated by lib-
 eral profits while the Government ap-
 rlies one of the surest and fairesi
 forms of taxation and labor IS more
 certain of good wages.
 In the stock market three favorable
 factors were prominent despite irreg'
 ular and declining values; the i'm. proving military situation referred tC
 above; growing belief that fair con
 tract would be made between tho
 Government and the railroads, and an.
 other favorable monthly crop report :. As to the railroad contract, care
 ful study of the terms impresses ont
 very strongly that the roads are to b'
 accorded fair treatment while under government central and that they wil
 be returned to their owners, when thu leases expire, in first class condition This years large crops together witt increased freight and passenger rate' , will enable the Administration to trea
 the roads handsomely without involv ing any expense to the Government
 The stumbling block between the
 landlords and their tenants has beer the amount that could be expended , for betterments and improvements l The provision covering this item Ii now so worded there Is no longer an! [ question of dividends being leopard ized. Uncertainty on this score ha. kept the railroad shares in the back ground but with this doubt removed there is no reason now why investor should hesitate in picking up gooc t railroad stocks which at current quo tations yield very generous returns The crop report showed deterio ration of 40,000,000 bushels in wheat 7 but still indicated a yield of 8s1, 900, = 900 bushels, or 241, 100000 bushel 8 more than last year. The wheat crol s is also about equal to the next larges l, crop in 1914, and compares with tn = bumper yield of 1925, 100000 bushel 3 in 1915. Corn promises a record yiel I of 8,160, 100000 bushels, which i @ slightly larger than last years bump y CT crop. The increase of 5 1-2 mil l lion acres in corn leaves an ampl n margin for ordinary deterioration. Tn l country is thus promised an abund z qnc6 If tha fbraa Yoooaf