Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-12-26
Lack of Production
Blamed for Costs
Continued from Page Ono

Continued from Page Ono
supply is the lack Of production. Work =
crs seem to be obscsSed with the thought
that they ought to get double the wage
for half the work. Unless you stimu e
late the production I can't see how you
will reduce the prices"
Nation Not, Producing Enough
David Kirschbaum. of the A. r.
Kirschbaum Co.. clothing manufactur
crs, lays the cause of high prices also
to the lack of production.
eve" he said. ''as II nation, are
not producing enough to feed and clothe
our people. | believe it il the duty
of every one to bring home to the in
dividua citizen the necessity of two
things: First, to increase our produc
tivitv instead of demanding shorter
hours. Second to practice individual
thrift. Since the close of the war most
of us have been indulging in what has
been aptlv termed 'squandprlust. -
In answer to the question whether
his company would be willing to arbi
trarilv reduce prices he said
Manufacturers whose prices are
based on production costs. plus II fail
profit. cannot reduce prices. Those in
dustries with great reserves might dc
SO temporarily: but such an expedient
would quickly exhaust those resources
and leave matters as bad. if not worse
than before. As for the great number
of manufacturers without such re-
serves. who are compelled to meet
present day wages. and who purchase
raw materials at present high prices
such action would mean ruin. TIL,
greatest objection. however, is that sucl
move would be an artificial expedient
and would not go TO the root of thC
| trouble, but would merely hack at the
branches. SO long as the supply is
limited due to restricted production. nc
amount of price fixing and no activity
of fair price committees can remedy the
situation.
Excess Profit Tax Pyramided
In regard to the excess profits tax.
said Mr.. Kirschbaum at is commonly
accepted as fact that the producers
of raw materials. the converterS. the
manufacturers and the retailers figure
in their overhead expenses the approx
mate amount they will have to pay as
excess profits tax at the end of the
year. Thus the excess profits tax is
pyramidPd. from the raw material OIL
| through every stage of production and
distribution until it reaches the con
sumcr. who bears the brunt. Recogni
| ton of this circumstance by the sec
retary of the treasury and other
national financial authorities is the
reason the movement for the repeal OF
/ the excess profits tax law has made
such progress.
/ 'Profteering :" cried Nathan 7
Fowell, of Folwell Bros. & Co, tex
tile manufacturers. That's all mush
The thing to reduce the high cost OF
living with is moro production Longer
hours of labor and more production SC
that the supply is able to meet the de-
mand.
The excess profit tax has nothing
to do with the raising of prices. It's
all a question of supply and demand
There are no excess profits. There has
never been more than a normal profit.
Government Wants Profiteers"
Fact of the matter is" added Mr.
Folwcll, the government wants
proiiteers, else how could they get these
excess taxes?"
Mr.. FOlwell was asked whether his
company would be willing to make AT
arbitrary reduction in prices provided
other companies agreed to do the same
thing, and whether such a nation wide
concession by manufacturers would re.
suit in permanent or temporary relief
NO sir" he said. I'VE couldn't re
duce the prices arbitrarily. The effect
would be only temporary anyway. You
can lay the whole trouble to a big de
mand and a small output. Oh, there
may be some persons making an excess
profit, but they are very few"