New-York tribune., 1920-01-21
Says Public Pays
I Excess Profits Tax
In Excess Prices
Direct Levy Which every
body Cam Seer Is Advo-
Gated by Member of Fed
eral Trade Commission

FOR every dollar Of excess profits tax
that eventually finds its way into the
public treasury between 81 and IS are
taken from the man in the street.-The
ultimate consumer-in excess prices
William b. Colver, member of the Fed.
eral Trade Commission, declared vester-
Gay before meeting of the Purchasing
Agents Association of New York. It
would be a good thing, he maintained,
pealed tomorrow
IF you knock the whole thing out"
ne said, 1.-THE price structure would come
down two or three stories at least. and
nobody would be hurt" A reasonably
small direct tax that Everybody can
see," evidenced perhaps by q stamp on
gross sales, could be substituted for the
excess profits tax, in Mr.. Colver's opin-
lon. He would have the same tax apply
on luxuries, necessaries and everything
else. -.
1--WE would be q nation of taxpayers.
OF course, and we would yell about it,"
Mr.. Colver continued, "but we are a
nation OF taxpayers now and we are
where we can see it and take it and paw
it and kick about it, and have done
with it?'
Another big source Of waste which in
the end is charged up to the public in
the price it pays for goods, Mr.. Colver
said, had been found In the paying out
Of money for the entertainment and
making Of gifts to buyers or purchasing
agents for large concerns. The Federal
Trade Commission has urged Congress
to pass law that will prevent this
and other practices that come under
what the commission calls commercial
bribery.
The proposed law has been supported
by the National Association Of Purchas-
ing Agents.
Mr.. Colver explained that seventeen
or eighteen states now have such laws,
but in most states they were wholly or
partly dead letters. and for that reason
the business man going into competi-
ton in state where there is no such
law says that he is under handicap be-
cause the state laws against commercial
bribery nMS are are, not ,e equally enforced: m
if the Federal law was made the
ground work for the whole country
and everybody applied it the same
throughout the states, that it would
save some millions Of dollars yearly
for the business public, and more than
tt at for the consuming public"
The assembled purchasing agents
were told that the law did not con-
template that when they did 60 to buy
| they could not be treated decentlv or
entertained reasonably, but it does
draw the line at lavish" entertain
ment. And one Of the forms of lavish
entertainment, as Mr.. Colver put it, is
going into a poker game and losing
money to poor player holding bad
cards.
The Federal Trade Commission has
also suggested that Congress enact
| some pretty stiR Federal laws to take
the place Of, or back up, the state laws
against "blue sky" securities.
Business men" said Mr.. s.olver,
"are constantly needing capital
and credit. There is just so much
capital in this country and there
is just so much credit in this
country, and when legitimate business
wanting capital and wanting credit to
make further extensions and to en-
large and carry on its business has to
go out in the open market and bid
4 against chrome dealer who is selling
conversation, it cannot do it,
I "There are millions--hundreds Of
millons-of dollars of the public's
money that is being shot down into oil
we'll ventures Not all of it is blue
sky there are plenty of good oil and
mining ventures, but against those
propositions, established, reputab BILE
business has to compete in the money
market and in the credit market. All
that we have suggested is that no
agency, the Stock Exchange, or any
body else, should put an K on any
security. It cannot be done"