Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-23

tCOntlnueQ from r1rS6 FNkSJ
Der tariff act. A comparison between
the House bill and existing law. he said,
showed that the average rate Of protec-
ton for agriculture was 1890 per cent,
! an increase over existing law Of 4.05 per
ment. For industry, on the other hand,
the average rate was 47,O7 per cent, an
increase OF 5.04 per cent.
Senator Smoot, chairman OF the
finance committee, and Senator watson
chairman Of the subcommittee in
charge of the farm schedule, took excep-
ton to the argument advanced by Mr.
Gray. They urged that the rate OF
duty was not the main thing ana main
tanned that the measure of protection
needed must be considered. Mr.. Gray
replied that the farmers would not be
satisfied as long as the average per-
centage of protection on farm stuffs
did not equal the average rate of pro-
lection on products of the industries
Mr. Gray laid before the committee q
long list Of articles on which the farm
ers are demanding further increases in
duty. They included live cattle, milk
eggs, poultry dried fruits, figs, dates,
cherries, almonds, faxseed, potatoes.
onions, hay, canned tomatoes, dried
beans and peas, alfalfa and clover seed.
In addition to insisting that the de-
benture plan should be written into the
tariff bill as an aid to the farmer. Sena-
tor Brookhart urged that bill pro-
posed by Senator Glass OF Virginia to
tax sales Of speculative stock be added
to the tariff bill.
Glass BIN for Revenue.
Senator Brookhart said that the
Glass bill was drawn upon the theory
Of raising revenue and therefore It
viii not be q complete knockout for
speculation which much desire. How
ever, It il the right kind Of tax and
should be theoretically supported. :
There Il one other proposition I
personally think should go upon the
tax bill and that Is the regulation Of
the profits Of all productive industries.
Our regulation has failed because we
have never limited profits. the one
thing that ought to be limited. That
the limitation Of the profits OF capital
is sound business principle Is proven
beyond question by the great co-opera-
tive organization of the world"
Senator King Of Utah, Democrat. an
opponent not only of the debenture
plan as an aid to the farmer but also
an opponent. Of the farm relief bill as
IL was finally written into law, issued
q statement predicting that the new
law would result finally In formation
Of huge trusts. dealing In farm produce
to the discomfort not only Of the farm
ers but Of the American consumers
Senator Kings statement was directed
primarily at the report that j. p. Nor
gan & Co. was about to launch q great
merger Of corporations engaged In the
products. He urged that the Attorney
General Of the United States take
prompt action to enforce the antitrust
laws.
"In my opinion" said Senator King,
"the most important question which de-
mands solution at the hands of the
American people Is that relating to
are being formed to control food prod
ucts. Wall Street paper announces
that the Postum Co., Inc, and the
General Foods Co. were establishing q
more perfect union; and we are ad-
vised of a huge merger Of corporations
engaged In the manufacturing and dis
tribution of foodstuffs and related prod
ucts to be announced by the house Of
Morgan. This giant organization will
have an enormous capital and Its field
Of operations undoubtedly will be pro-
gressively enlarged.
Billion Dollar Bread Trust.
A few years ago q corporation with
q billion-doll capital was projected to
control the baking and bread produc-
ton interests Of the United States.
1t Is obvious that II the Federal Gov
eminent and the various States do not
enforce their laws against monopolies
and trusts and giant combinations most
serious consequences will result, jeop-
ardizing not only the economic, but the
political freedom Of the American
people.
I'm my opinion the Attorney General
OF the United States should take prompt
action to enforce the Federal antitrust
laws. II Is important that there be
competition in our industrial and busi-
tic situation viii result in the mainte-
nance Of high price levels to the serious
injury Of the consuming public.
1T has been suggested that other
similar mergers will be formed for the
control Of agricultural products be-
| cause of the belief that under the farm
relief bill there will be increasing sur
pluses. The outstanding purpose Of the
| so-called farm relief law Is TO sustain
prices Of farm products by caring for
SURPRISES. This Is to be done by the
Federal Farm Board by the use of
enormous appropriations which will be
at Its disposal. These accommodations
| will inevitably depress the market for
raw food products and eventuate in
their sale by the Farm Board. T2is
situation may have prompted the Nor
gan merger and may lead to the forma-
ton OF additional organizations Of giant
proportions to control agricultural
products. The profit In sight between
wholesale purchases Of enormous
masses of agricultural merchandise at
prices which the purchaser will be able
to AK for himself and their resale to
the consuming public Is difiicult to
! express in figures but that 1t viii
assume large proportions there can be