South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-08-06
PROFITS TAX is
PROPOSED TO
CUT He. OF |.
US. Grain Corporation Sells
Flour At $40, Opening
War on Prices.

WASHINGTON Aug 6-Pres't
Wilson today began work on the
message he is 10 read TO congress
within a few days outlining a pro-
gram 10 reduce the cost of living
The message. il was understood.
will ask for new laws. better TO en-
prohteers. hoarders and others who
are directly and wilfully conribut-
ing to high prices
one OF the presidents recommen-
dations for new legislation is expect
ed TO deal with some form Of regu-
lation OF cold storage companies.
This would prevent holding Of food
in storage for high prices.
Regulations governing transporta-
ton of food also will be. touched
upon by the president, it was learn
ed.
Mont Reduce Paper Money.
\ proposal TO reduce the amount
of paper money in circulation is not
expected to get much attention i'm
the presidents message Cabinet
members who studied the proposal
yesterday would not agree that this
would prove a practical method Of
lowering prices.
The president is known TO have
before him a strong recommends
tion Cor licensing corporations in in
terstate business to prevent them
engaging in businesses closely allied
10 their own.
Use Hoover Machinery.
Cabinet members who studied a
proposal TO revive the food admins
tration failed TO reach an agreement
on this point Although the admins
tration may not be revived. its ma
chinery will be used to the fullest in
an effort 10 prevent food boarding
and price boosting.
The recommendations which Will
son has on his desk while he is
drafting his message were submitted
to him late yesterday by Atty Gen.
Palmer. They were drawn up by a
/ committee Of Il cabinet members
and other high government officials.
after consultation with economic ex-
perts and after studying a report
submitted by Federal Trade Com
4
Hines. and Asst Sec'y of the Treas
Iury Lefingwell. who surveyed the
whole food situation.
stop Food Hoarding.
Palmer also told the president
that all the machinery of the de-
partment OF justice had already been
/ set in motion 10 stop food boarding
and profiteering and indicated ne in
/ tended 20 make examples OF some of
/ the worst offenders.
julius II. Barnes head of the
/ United States grain corporation. has
taken steps 10 bring about an imme-
diate reduction in food prices by
+ forcing down the price of flour
/ Barnes announced he would sell
standard export flour everywhere in
/ the United States at $40 a barrel.
which is 81 a barrel lower than any
price prevalent during the last four
months.
Maintain Wheat Prices.
The guaranteed wheat price TO
/ farmers. $2.26 a bushel will be
maintained. Barnes stated.
An excess profit tax that would
reach every prohteer was advocated
today .y Sen. Capper. Kansas
He announced he is working on a
/ bill 10 that end All over a reason
able profit" would be turned into
the government treasury under his
plan.
If the dealer knows that he will
have 10 give up his ill-gotten gains,
the Incentive 10 profteering in foods
I and other necessaries will diSap-
pear" Capper said.
Allow Legitimate Profits
Nothing in his plan would be al
lowed 10 interfere with legitimate
profits. He proposes "A judicial com
mission which would determine the
legitimate margins for various lines
OF business. Income tax files OF the
collector OF internal revenue. which
contain a detailed statement OF ex-
penses and profits OF every business
man in the United States would be
made available.
The more I study the proposition
the more convinced am that il i.
the only practical solution OF the
prohteering question" Capper said
Some lines OF business would
have more than others and wha'
would be a reasonable profit in one
business would be profiteering in an
other There could be no fixed rule
and il would take a commission I.
, study each business and set a fan
margin OF earnings"