New-York tribune., 1919-08-22
Palmer Plan for Heavy
Sentences To Be Adopt
ed by Congress; Income
Tax Clew to Cougers
Control of Sugar
Has Been Resumed
Effects of Food Control
Law To Be Extended to
Clothing by Senate Act
NcW Yorh Tribune
Wcshtn0tou Bureau


resulted In Il demand to-day that the
secrets Of the income tax returns be
revealed In order that the people may
know who are the prohtecrs, A resolu-
tlon to make income reports available
to Congressional investigating COM
mittee was introduced to-day In the
Senate.
Another move was made by the gov
ernment in it's efforts to hold down the
price of sugar. Control of sugar as in
wartime was resumed, and it is an
nounced that any dealer who charges
more than II cents a pound does SO
at the peril of losing his license to do
business.
Legislative results from the appeals
of Attorney General Palmer became
certain to-day when the House reported
amendments to the food control act
that will bring wearing apparel, con-
tanners of food, feed, fertilizers and
fuel oil within the law, and impose
a maximum penalty of $1,000 fine and
two years in jail for profiteering.
Farmers are exempted from the laws
provisions, and collective bargaining is
permitted
Price Fixing Is Barred
1t was definitely decided that there
would be no price fixing, and with that
understanding the amendments are
ready Tor vote, which Republican
Leader Mondell assured the Attorney
General would be had tomorrow.
The reso luton in regard to incomes
was introduced by Senator Walsh,
Democrat, Of Massachusetts. 1t re-
quested President Wilson to make
available to a proposed Congressional
committee to investigate the high cost
OF living the income tax returns, show
ing the profits made by all large pro-
ducers and distributors of food sup
plles and Of all contractors for war
materials.
Inc income tax returns of ell Cor
porations. partnerships and individuals
are public records, kept on file in the
office of the Commissioner of Internal
Revenue. The President already has
authority, conferred in the revenue act
OF 1916. to permit inspection of these
records upon executive order.
Senator Walsh's resolution is de-
signed to establish whether there has
been profteer:ng by dealers in food
plies. The resolution is so drawn that
the evidence secured by the Congress
slcnal Committee could not be used
in criminal prosecutions of profteers
but Senator Walsh believes that pub
licity would work a cure.
Joint Committee Contemplated
The resolution was introduced as an
amendment to resolution presented
Yesterday by Senator Owen, Democrat,
Of Oklahoma. which seeks the estab-
lshment of a joint committee of the
house and Senate on the high cost of
living. The committee would be ap-
pointed by tho Speaker of the House
and the Vice President and five men,
bers from each House. The committee
would have authority to conduct in
vestigations into all phases of the pres
ent problem and would be directed to
report to the Congress in one or more
reports, as it may deem advisable, the
result of its Investigations at the
earliest practicable time, with such
recommendatlons as it may care to
make"
The provisions of the revenue law
making income tax returns public rec
ords, open to inspection upon order of
the President reads as follows:
When the assessment shall be
made, as provided III this title, the
returns, together with any correc-
tions therefor which may have been
made by the commissioner, shall be
filed in tho Office of the Commission
er OF Internal Revnue and shall con-
stltute public records and be open to
inspection as such: Provided, that
any and all such returns shall be
open to inspection only upon the or
n a Proc
regulations to be prescribed by the
Secretary of the Treasury, and ap-
proved by the President"
General Publicity Abandoned
When the last revenue bill was under
consideration Representative Kitchin,
then chairman of the Ways and Means
Committee, started movement to
make income tax returns available to
the public, without special order, as
means of halting protiteering. This
effort was abandoned by Mr.. Kitchin
under pressure from Administration
leaders,
Senator Walsh, in discussing his res
olution, said:
I'm my opinion, the chier causes OF
the present high cost of living are
proilteerlng, avoidable waste in produc-
ton and distribution and unnecessary
PNA eAiiS VI AOSUStUilS dlQ Olncr noCoS
stiles of life for the sake of larger
profits.
The purpose of the amendment Of
fered by me to Senator Owens resolu-
ton is to make the inquiry into proflt-
eering as cause of the high cost OF
living more definite and specific, and
especially to make use of the informa-
ton regarding excessive profits con-
tanned in the income tax returns, which
by law are public records, yet cannot
be inspected except upon the express
permission of President Wilson. 1t is
believed that these returns will show
that profteering has extended far be-
yond the great combinations that have
been investigated by the Federal Trade
Commission, and, indeed, has been far
too general to be adequately reached
or punished by penal prosecution.
1.-The information obtained from
these returns will assist also in pre-
pairing roll of dishonor. so the over
whelming element of the American
people who were patriotically sacrifc-