Evening journal., 1919-08-06
PROFIT TAX
NOW TALKED OF
lcontInusd rrom FIrst Pagel


agree that this would prove a prac-
tic1l method Of lowering prices
The president is known TO have De-
fore him a strong method OF licensing
business IN interstate business TO pre-
vent them engaging In business closely
allied 10 their own.
Cabinet members who studied a pro-
possl 20 revive the food administration
failed 10 reach agreement on this point.
Although the administration VII not
be revived. ils machinery will be used
10 The fullest In an effort 10 prevent
food boarding and price boosting
The recommendation which Wilson
has on his desk while he Is drafting
his message were submitted 10 him late
Yesterday by Attorney General Palmer.
They were drawn By committee or
eleven cahln~ members and other high
government officials after consultation
with economic experts and after study
ing report submitted by Federal
Trade commissioner Colver, Rail Dl-
rector Hines and Assistant Treasury
Secretary Lefllngkcll who surveyed the
whole situation.
Palmer also told the President that
an the machinery of The Department.
of Justice had already been set IN mo-
lion to stop prodiceriug. and indicated
ne Intended io make examples OF some
OF ihe worst offenders This lead 70
tho hclief today that number Of ar
rests Of big food dealers may be ex-
pectod. So The nation VIII be able 70
see what the Federal government -
doing 10 remedy conditions with the
powers already at lis disposal before
Wilson goes TO Congress to ask for
more power.
Julius Barnes. head NJ the United
Slalcs Grain Corporation, has taken
steps 10 bring about sn immediate re-
ducii0n IN food prices by forcing down
ihe price Of flour. Barnes announced
he would sell siandafd export flour
everywhere in the United states at $40
barrel. which Is II a barrel lower
than any price prevalent during the
last four months.
During the guaranteed wheat price
10 farmers s2.26 bushcl viii be main
tanned. Barnes said.
An excess profits tax that would reach
every proficer was advocated today by
senator Cappcr Kansas. He announced
he Il working on bin to that end. All
over a reasonable" profit would be
turned into the government treasury
under his plan.
III the dealer knows that he will have
10 give up his ll-goiten gains. tie in
cenli,o 90 prohlcering In food and other
nccessaries will disappear" Cooper said.
| Nothing In his plan would be allowed
TO interfere with legitimate profits. lie
proposes a judicial commission which
would determine the legitimate mar
gins for various lines Of business. In
come tax nlcs Of the collector Of inter
nal revenue which contain n detailed
statement Of expenses and profits Of
every business man In the United states
would be made available
b 'The more ! study the proposition tbs
more convinced ] am that u Is the onl,
practical solution of the proltcerinl
lquestlon." Capper said. some line
81 Of business would have 10 have NOR
p than others and what would be rea
? sonsble profit in one business would b'
too much in another.
b Ample authority would be given "a
prevent padding of costs TO cover
profits. President White, Armour
. and Company testifyins before the Sem
aic sub committee investigating profit
eerng also suggested an excess profits
tax Of this nature.
such a tax. he said, would catch
dealers who Are pronteering IN shoes
lat present
"An excess profits tax that would
take an over a reasonable profit Is
about The only wayl see OF reaching
such dealers" White said
senator Johnson south Dakota. also
declared for such remedy.
4. we are alread, Nmiting the bank
ers profit and no one ever stops TO
question the authority Of the Govern-
ment to do lhisn ne said why can't
We 10 the same thing IN other lines
of busincss2 We did u 20 the bankers
I because everybody was against the big
money lender and now The same feel
| ng Is growing against The dealer IN
food and clothing No one can COM
plain that tho banker is injured be-
eluso he Is limited 10 reasonable IN
ierest and no business man could OBJ
iect 10 being limited TO fair proht
on h.s wares"