The Washington times., 1920-05-22
Lauck recommends I:

OF LEGISLATION providing for the res
titution to the people through Federal
taxation OF all excess war profits;
Second-Legislation putting into
effect Immediately the proposal now
before Congress calling for the stamp
ing with the producers cost Of all
commodities entering into interstate
commerce.
Third-Legislation requiring all
Industrial corporations engaged In
Interstate trade to take out Federal
charters, which would put the
finances, reorganizations and CONSOLE
dations OF these interests under Fed
eral control. and so prevent the cspi-
talization of illegitimate earnings
through stock dividends and the alb
sorption of excess earnings by the
issuance of fictitious securities.
Fourth-Continuatio OF the cam
paign OF publicity and education
against the profteers, since neither
the corporate producers, the whole-
salers or the retailers can stand the
stigma OF being known as profiteers.
Rest With Politicians.
II the politicians and Legislators.
said Lauck, will accept honesty and
courage instead of political expedients
as the constraining forces of their
political conduct. the abnormal living
cOStS easily can De Teuuceu.
Remedy for Pronteerinx.
"The abnormal conditions created
by the war, as was to be expected,
greatly increased prices or the cost
of living. The Withdrawing OF men
from industrial and agricultural ac-
tivities to armed conflict, the diver
sion of industrial facilities to the
manufacture OF munitions and war
fha RI n ion nf can't al
and commodities and the restriction
upon agriculture In the zones of con-
fiict-or, in other words, destruction,
restricted production and unpro-
ductive nsumption-reduced pre-
existing stocks of goods and made
additional accumulations more diff-
cult, and thus brought about an ex-
cess OF demand for commodities over
the supply available.
1.-The net result was scarcity values
and constant rises in prices during
and since the war. This scarcity sit
uation has been taken advantage Of
by constituencies producers, dis
tributors, and spectators, to exact
huge and indefensible profits from all
classes Of the people in time Of
national emergency.
Constructive Action.
"The two general principles which
should govern any constructive pro-
gram for bringing about a return to
normal prices and a more equitable
distribution Of the output Of industry
are manifest. They have always been
obvious but the dominant politicians
Of both parties on the eve Of a Presi-
Dental campaign have not had the
courage to give them a practical APP
plication and thus relieve the suffer
ings of our people and ameliorate the
grevious condition Of the world.
"They are afraid of the effect CT
such action upon campaign contri-
buttons and of mourning the political
hostility of powerful corporate and
financial interests which have at
tempted for many years to subordi-
nate our democratic institutions to
their pecuniary interests.
"But If they are to be deferred by
the fear Of the effect on campaign
contributions, and of the political
hostility of the big interests, (which
for many years have attempted to
our democratic institu-
tons to their pecuniary interests"
the present evils will run on un-
checked.
Labor Ii Distrustful.
be induced to increase production so
long as it knows that it greater pro-
duction will be illegitimately absorb
ed by the proflteers. But IL labor
can be shown, he said. that increased
production will be followed by lower
prices, or in other words, greater real
wages. there will be no difficulty in
attaining maximum production.
Excessive demands, as well as ex-
travagance and waste, In the ranks
of labor cannot be checked, he de-
clared, so long as excessive prices are
being exacted by profiteering produce
ers and distributors, and war-made
millionaires are lavishly dissipating
the wealth which they corned during
the war grief of the people.
The wage Garner" said Lauck,
feels that in being asked to increase
his output without any safeguards
against profiteering. is equivalent to
urging him to work harder that he
may be further robbed and his eco
nomic status further undermined"
Laucks program. in full. is as fol-
lows:
"The two principles Of effective &C
ton should be:
"The elimination of profiteering
and of inequalities in the partici-
patton of the public in the out
put of industry.
"The acceleration OF Industrial
and agricultural production and
the elimination OF the waste and
extravaganza which is prevalent
among all classes.
Profitecring Must Stop.
Both of these objects can be at
tained by courageous effort and
proper legislation withort any over
turning of existing institutions and
without any revolutionary action
whatsoever. All that Is required is
that our politicians and legislators
accept honesty and courage instead
of political expediency as the con-
straining forces or standards Of their
public conduct. Obviously, however.
profiteering must be stopped before
II can be hoped to stimulate produc.
ton and eliminate waste and extrava-
gance.
Labor cannot he induced to in
crease output so long as 1t knows
that It's greater production will be IL
legitimately absorbed by profiteers.