New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-22
High Cost Due
To War W aste.
SAYS Dawson
Remedy Lies in Curtailment
of Consumption and I'm.
necessary Production. He
Tells the Lusk Committee
Psychology Is a Factor
Declares Increased Wages
Help TO Elevate Prices:
Calls Labor Inefficient

Henry ?. DAWSON told the Lusk com
r,,ttee al City Hall yesterday that the
18Th cost q living and the social and
Industrial unrest springing from it
sc both result Of the waste Of war
and tad their root in psychological
causes.
Thaddeus c Sweet, Speaker OF the
safe Assembly. ex-officlo member OF
+.s committee. was present at the ses-
sion to aid IT Questioning Mr.. Davi-
sen
VI. Dawson declared he had no
ears-all to suggest, but that as far as
Is was able 20 analv1e it the remedy
rust be sought n curtailment o. CON
sumption ard unnecessary production,
Increase Of production of necessaries
ard severe cut in expenditures on
re par of Observation-Disclosures
s,ste and cty-as we'll As Of indlvid-
p2.s
Prior to NJ. Davisoa's testimony
A-chfbsid Stevenson. counsel for the
committee made speech in which he
tod NJ. Dawson Of the discoveries
rsde by the committee of the vast
rsaicsl propaganda under way intended
20 stimulate social unrest and the
deliberate effort on the part OF rad
ca sgitators % undermine the social
structure and overthrow the govern
Eent-
Radicalism Laid TO War
In reply 70 MIR Stevenson. Mr.. Davi-
scr TOOK the attitude that the present
direct activities Of radical agi tators a.
&c ne consequences Of the World War.
If you would Like me TO answer
tn question IS 10 what in my op-n-
ior IS ire cause Of the present high
cos q living said Ny. Dawson, Il
would answer II by saving it is the
waste o. war Millions o. men not pro
ogcing ara billions OF property blown
into Ire air must result N an increased
cost + consumption does not decrease
spordIrgly. II has always been
SO after every war, and I think il Is
n more marked IN this case than it
Eas been heretofore"
"I -Hl1A there is psychological
hsse operating throughout the world
7hlc- IS having 4 marked effect upon
re s.-uatIon,' added Mr.. Dawson. and
think it IS responsible as factor
To- Droftearng. But, again, that Is
a. al effect and not cause"
On TINS point. Mr.. Stevenson again
pleaded with Nh Dawson to offer an
a1-dore for the vast radical propa-
eanda under way in the country.
~ is very serious problem and 2
1s,- difficult one to solve" said M.
S.crerson. and asked Mr.. Dawson
vse-oer he would approve of com
NEE on public Information, such as
var. being established for the purpose
e counteracting the propag anda Of he
agi.a,ors.
Sweet Mods Approval
y think that would be very IN
portant" replied M. Dawson, pro
vlded you could eliminate al politics
from It"
Sneaker Sweet nodded his approval
Of Nr. Davson's reply.
Asked TO discuss the effect of in
fa.ion on currency and its consequent
bearing on the cost OF living, Mr.. Davi-
son said there is imitation throughou
tie world, and that affects the cost Of
materials but il is an effect and not a
cause Ire cause. he again emphs-
si7sd, is the waste OF war.
In reply 10 questions, Mr.. Dawson
asserted that increased wages contrib
u.ed materially to high prices, and
tina. "as part OF the psychologi
phass' OF the situation "there is pri-
meval amount Of ineficiency' on the
part Of labor.
The recent epidemic Of railroad and
other strikes was also regarded by the
witness IS a serious factor IN the prob
len
Asked whether the prevalent high
taxation was also responsible for the
trouble, Mr.. Dawson said:
IT is human nature to arrange, i
YOU can honestly. TO let the other fell
low pa the bill. and # there * leglsla-
ton which imposes an increased cost
en- you n ne manufacture OF your
product to put that on-and I am not
sure but vhsc 4 this present phase II
which We are some have not added
little for full measure
Taxation and High Cost
y would emphasize" said Mr.. Davi-
son, that believe our system Of tax
alton and our rate Of taxation in this
country today have q decided effect
upon the cost of every kind of ma
terlal"
M Dawson declared the shortage OF
farm labor was a serious factor, and
that, unless some other factors inter
vene 70 Offset is influence, il would be
reasonable to suppose that prices of
toods,afs Viii be higher next year
than row. Among the possible neu-
ralzlng developments he considered
nportations of foodstuffs from other
Countries, particularly South America.
lac fact that large part OF Europe IS
siiA unproductive. he said, will inevita-
0ly tend to raise the prices Of neces-
alles IN this country.
Asked whether in his opinion extrav-
igance mas played q part in the
maintenance Of high prices, Mr.. Oavi-
aon said:
y think there mas gone on what one
nlgnr call an orgy Of extravaganza,
0alch, Of course, has had an effect
upon prices. am told many people
we're lot satisfied unless they could
pay high price for Injuries, anything
" please their vanity
lhls extravagauce. Mr.. Dawson saws,