The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1918-07-19

This question has just been an
swered by Daniel c. Roper, Commits
sioner of Internal Revenue, In a re-
port to Congress which shows that al
most in the same proportion pro-
fteering has grown the number OF
big incomes have increase. For ex-
ample, in 1914, according to the IN
come tax returns, there were 8,672 in
comes of $4,000 and $4,000 year
representing fortunes of $5OO,oOO
each; in 1916 there were 1888. In
comes of 100000 to $250,OO0, repre-
senting fortunes around $5,O0O,OOo,
increased in number during this peri
Cd from 233 to 726. Fortunes OF
s1O,0O0,OOO increased from SO to 245;
fortunes from $1O,000,O00 to $2O,OOO,-
900 with incomes of half to one
million dollars year increased from
ia to 376; fortunes above S23. 1900
900 increased from go to 206 in hose
two years. Analysis of these figures
show that Will. men of The half mil
lion dollar class increased IN num-
bers 40 per cent, tne millionalres Of
$5,000,00O and over increased in
number as we ascent 20 the billion
aire class respectively I'll, 1885, 23O,
and 243 per cent. In other words,
prohteering is mating millionaires
much more rapidly than it is making
men of moderate wealth, and there
were over three times as many men
owning over $5,0OO,O00 in 1916 than
there were in 1914.
Profiteering Hurts Farmers
The, United States Department
of Agriculture has given out the in
formation that prohteering in pig
iron and steel is the main excuse Civ
en- by manufacturers for the doubling
and trebling of the price OF. farm inn
elements. In fact, it is stated that
that producers of these raw ma teri
ais are charging such high prices
that it is doubtful if the licensing
system recently inaugurated by the
Administration to control farm ma
chinery prices will have much effect
julius Cook, head of the Office OF
Farm Equipment Control, who is af-
ter the profteers, reports that the
cost of pig iron to the manufacturer
has advanced since 1914 from ST.
and $14 to $50. Other raw material
entering into the manufacture OF
farm implements have advanced al
most in the same ratio. The idea j.
gaining ground very rapidly that j
the Department of Agriculture is tt
really lower farm machinery tt
farmers in the present crisis so thai
food production will not be ham
pered, it must buy the entire outpu
of farm machinery at prices based il
each plant on the cost of production
Then it must pool this output ant
sell it at an average price. If thu
American Harvester Company trie'
to block this program. it would b.
necessary to take its manufacturing
plants over and that would Civ,
Uncle Sam practical control of tn
production as we'll as the distribution
] Of farm implements.
Price Fixing Helps Trusts.
A startling fact brought out in tn
recent report of the Federal Trad
Commission to the Senate on pro
fiteering was that government pric
fixing has served as a cover for tn
big profteers who produce at Low
cost and sell at the maximum price
fixed by the government. In estab
fishing prices the government wa
obliged to fix them at level whicl
would enable the less poorly equip
ped and efficient companies to exist
This left a wide margin of profit
for the low cost companies and the,
took full advantage of it. From
this the commission concludes tina
the fixed price system has produces
"an economic situation fraught wit
hardship to the consuming public,
which will gradually enable the 10y
cost concerns to absorb their smalle
competitors. It all comes down t
the proposition that in fixing price
the Government cannot prevent tn
big trusts from asking huge profit
1 so long as it permits the smaller con
Germs to make any profit at ALL TIL
only way the cost of living can b
! lowered to the people is for the gov
: eminent to fix prices based on tn
7 average cost of production, other
| wise the only alternative is the meth
| cd employed so much by the warrin
nations in Europe-Government pre-
duction and distribution of the basi