The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-01-07
Lowden, the Capitalist,
Thinks Production Cost
Good Enough for Farmers
BY ]. LOUIS ENoDAHL-.

MI OCH OF un0 war InaJ now RACES
A'A about the question of farm re-
lief centers on the question of how
much the farmer should receive for
the products of the fields he tills.
The capitalists and their politi-
clans are very anxious that dollars
invested in industry should receive
IAN adequate return" at least six
per cent guaranteed in the case of
railroads, for instance.
The farmers are somewhat
amazed that congress does not take
a similar attitude toward them. The
whole drive. behind farm relief legis-
lation is to win some such guarantee
for the farmer. The Coolidge-Mel-
lon administration, however, de-
clares such legislation TO be ECO
nomically unsound" and 1t DIS not
adopted.
Frank o. Lowden, the Illinois
multi-millionaire who parades as "a
friend of the farmer" states the
case as follows:
1T is clear that the great agri-
cultural plant of America has been
running down at a dangerous
pace. If the farmer does not re-
ceive an adequate price he will
finally cease to produce. No one,
whether manufacturer or farmer,
can go on indefinitely producing I'M
less he receives at least the cost of
production for the thing he sells.
The result will be fewer farmers.
This result is already in evidence.
A report recently issued by the de-
partment of agriculture states that
the farm population Of the United
States was reduced by almost half
million during the last year"
Then Lowden becomes a little
clearer as to where he stands on
the question of the farmers return
by discussing the stabilization Of
prices as follows:
eve should find some means for
stabilizing prices of farm products.
The price of commodity can be
stabilized only at a point near the
cost of production. For If the price
continues below cost of production,
sufficient number of producers will
fail, production will fall below
the needed requ :sments, and
prices will rise. - If an at
tempt is made to stabilize the price
above the cost of production plus a
reasonable profit. capital less profit
ably employed elsewhere will flow
into the production of that partic-
ular article, the supply will exceed
the needed requirements, and prices
will fall.
Therefore, it follows, that If we
shall succeed in stabilizing farm
prices it will have to be done at a
point covering cost of production
with sufficient profit to induce the
farmers to go on producing"
This is the Mr.. Lowden, who
draws huge dividends from the Pull.
man company, but never fears that
the profits will be too high, attract.
ing excessive capital into the pro
duction of sleeping cars and other
products of the car.building indus
try, resulting in an overproduction
No corporation will admit that its
profits are too high.
While the farm crisis was sweep
ing into nearby all sections Of the
nation last summer, the Pullman
company showed a profit after all
deductions, of s14.296,611 for the
year ended July 81, 1926
which represents a return oil
26 per cent on capital invested. This
was a gain of 100000 over the pre-
vious years profits. Farmers should
be vitality interested In the profits
taken during the period since the
war, the period OF defation for agri
culture, by Lowden's Pullman com
pany. Here they are:
Pct. made on ca
| War prnfif ifol invaotad