The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-01
CONGRESS IN DRIVE
TO OUTLYING COST.
Experts Will Investigate Pro-
duction During House
Recess.
PROFITEER TAX URGED
Seize Extortions of 1919 and
Put Them in Treasury,
Says Igoe.
Special Despatch to TEE sus.

WARRINGTON, July S1.-CongresS, ap-
parentiy convinced the continued high
cost of living demands that all Gov
eminent powers be used to combat It,
to-day launched further attempts to
bring down the price Of commodities.
-Four developments featured to-day's
fight against charges which are causing
flood OF petitions urging immediate
action. These were:
The cost Of production of many COM
modities will be investigated during the
House recess by calling Federal Trade
Commission experts before the special
House Committee investigating army
food supplies.
The introduction Of a resolution by
Representative Fitzgerald of Boston de-
claring 1t is the sense of Congress that
the huge wheat crop of the country
should be sold to the people of the
United States at the prevailing world
market price instead of the s2.26 guar.
anteed price to the farmers and that the
deficit be made up out of the $1,000, 000,-
900 appropriated for that purpose He
also asked an investigation of food
speculation on the exchanges.
Chairman Esch (Wis.) OF the House
Interstate and Foreign Commerce Com.
mittee, stated his committee would &c.
morrow consider the resolution Of Pep.
resentative Igoe (Mo.), asking the Fed
eral Trade Commission to investigate
the prices Of shoes. sugar. clothing and
coffee. Efforts will be made to push
the resolution through the House Satur.
day.
Profits to BE Analysed.
Mr.. Igoe declared that pronteerins
can be stopped by investigation OF the
profits Of large dealers of commodities
and placing large taxes on the same.
Regarding the investigation Of cost
prices by the special War Department
Committee Chairman Reavis stated to,
day he believed the Federal Trade Com
mission figures would nQt only show the
packers and large interests made huge
profits out of the War Department dur
ing the war but are G ontinuing these
large returns through the present high
prices.
The Federal Trade Commission, h,
said. will clearly show the difference be.
tween the present selling prices OF foot
and the actual cost of production.
The Fitzgerald resolution points ou
that Canada has decreed that its wheat
shall be sold at the world price in
also asks the Attorney-General to insti
tute an investigation into the specula.
ton in food products.
MY idea." said Mr.. Igoe, "is that the
effective way to stop profteering is Il
tax the extortions of the profiteers intc
the Treasury. This business of prose
cutting violations OF the antitrust laws
Is good, but 1t is a slow process and with
the aid Of eminent lawyers and lega
technicalities the trial Is delayed, ant
when finally brought to trial the defend
ant Is not Obliged to disgorge. nor ha
the tendency OF the prosecution caused
abatement Of his Ubiquitous methods. LIE
| the prosecutions go on IL you will, bu
| II a proflteer finds his profits taken ava.
by law that is certain and immediat,
in its operations, I venture the predic
ton that he will stop profiteering.
Some One Getting Money.
I'VE have now an elaborate and eff
ficient system in operation under which
we know that practically every individ
ual, ,frm and corporation earned in 1919
We know that prices are continually in
creasing and that some one is getting
the money.
Under the act of 1918 an exemption
was allowed to individuals and corpora
lions which was thought to be fair ant
equitable. Because OF the increase II
the cost of living perhaps this should b,
Increased in the case of individuals t
give an additional exemption for increase
in wages since 1918.
ut seems to me that II an individual
in business or a corporation or firm II
increasing new earnings in 1919 ovel
1918. allowing for new capital invested
that such increase should receive very
! careful scrutiny. We should be able un
der such examinations and through 6
properly framed law to make the 1911!
pr officer at least pay over DO the Treas
ury what he has extorted from the peo
pie"
Speaker Gillett and Representativ,
Mcndell, the Republican floor leader
| both still declined to agree to the con
| sideration of the resolutions until actor
by the committees. 1t Is evident tina
the reSolukons are more far reachinl
than 1t was at first supposed. and II thu
! one providing for the investigation b,
the Federal Trade Commission is adopted
as written It viii result in a report or
| the shoe situation within i've weeks
which would be record for investiga.
lions by that body.