The sun., 1918-07-05
A Report on Prontecring; Then
Higher Price for Copper.

a Report on TTOutSef1uks luch -
Higher Price for Copper.
At the end of one week comes the
report Of the Federal Trade Commits
sion on profiteering, and at the be-
ginning of the very next week comes
the announcement Of the War Indus
tries Board fixing the price Of copper
at 20 cents a pound, an advance Of
2h cents over the former price.
This only goes to show that the
Government must have, above every.
thing else, an abundance of products
that are essential to the conduct Of
the war. 1t only goes to show that
when prices are fixed, no matter how
much the proflteer Is making, they
must be fixed high enough to stimu-
late the output Of the producer who
will not operate, and cannot operate,
at a low price. 1t only goes to show
that you cannot fix price low
enough to reduce high profits without
driving out of business the man who
produces Mt low profits; without d.
minishing the supply; without locking
the wheels of the war machine.
Nevertheless, this problem Of main-
tanning production with high prices
is not unsolvable. Though possible.
1t may not be practicable to prevent
inordinate profit in some industries
or businesses, peace or war; but 1t Is
both possible and practicable to pre-
vent the profiteer from getting away
with 1t. And this expression Of profit
eering need not mean that the prof
iteer Is always either wicked or
greedy. In these circumstances Of
high prices fixed by the Government
itself to stimulate production by the
man who cannot operate at low
cost the profiteer is helpless, so to
speak, against his fabulous gains.
They are shovelled into his lap. They
are shovelled into his lap by the Gov
eminent itself.
Take this instance of copper. The
Federal Trade Commission report
showed last week that the low cost
producers Of copper were already
making as high as 100 per cent. profit.
They were not making 1t, the report
set forth, because there was any con-
spiracy, because there was any DELHI
crate gouging OF the Government or
other consumers, because there was
any improper method employed by
them. They were making it FOR the
simple reason that they could produce
copper cheap. Wherefore, as the Gov
eminent marks up the price higher
and higher to take care of the pro-
ducer who cannot make copper cheap,
the gains of the profiteers must go
higher and higher.
Anybody can see that II It costs
one man only 10 cents pound to
produce an article which 1t costs an
other man 90 cents pound to pro-
duce, any general price fixed by the
Government to give the second man
no more than nominal profit will
give the first not less than 100 per
cent. He might be content with 20
rer cent. or 10 per cent; but If that
10 per cent. and perhaps 100 per cent
on top Of It are tossed into his lap by
the price fixing Government, there 1t
Is, whether he did or did not seek it.
But while In the war condition OF
abnormal demand for essential COM
modities the production OF those COM
modities by everybody that can pro-
duce them must be stimula ted by a
price that will keep up the supply by
keeping the high cost man as well as
the low cost man operating at the
maximum, II does not follow that
there is justification for enabling the
one to make Ave. ten, twenty times us
much as the other--and make 1t out
of the Government
There Ia q simple enough way. as
the British Government has dscov.
cred, to have uniform price based
on the needs OF the high cost producer
and yet to permit the Government, in
effect, to pay the low cost producer
the so-called profiteer-much less
than the Government pays the high
cost producer.
The Government can let one pro-
Queer make 90 per cent of profit. Il
that is fair profit, and keep 1t all
The Government can let another pro.
Queer make 100 per cent. profit and
then, with war tax, take away from
him for the Treasury all of that
profit. except the same as the other
man gets.
The plan Is followed by the British
Government When it Is necessary tc
have price which will keep high cost
producers in business the British
Government does not care whether
tho low cost producer makes 100 pei
cent or 1000 per cent. profit on the