The Washington times., 1934-06-23
TAX TO ABSORB
BIC INCOMES
PROPOSED
Army Industrial College Grads
Hear Plea for Action to
Discourage Conflicts
By International News Service =.


BY International News Service
Drastic control Of profits in
wartime was advocated today by
Bernard M. Baruch, former chair
man Of the War Industries Board,
as one Of the best methods Of
limiting the causes Of war.
In an address at the graduation
exercises Of the Army Indutrial
College here, the financier de-
clared that all profits which are
an incentive to war must be "ab-
Solutely destroyed"
Would Permit Small Profits
Mr.. Baruch explained that he
did not advocate total elimination
of profits in wartime, but curtatl-
ment Of them to level below
those made in peacetime. He said:
"The profit motive is one
which, in my judgment, society
is not yet ready to eliminate.
But, society is ready, and 1t
does demand, the elimination OF
profiteering and, above ALL the
profits incentive to war.
Even under the fiery spell
Of patriotism, even under the
great surge Of emotion called
into life by war, the factor OF
woip~ 10 eth VNrNSNnf
"TO me, the phrase taking
the profit out Of war does not
mean the entire extirpatiOn Of
individual profit; it does not
mean that we can get along
without the spur to action that
the hope Of profit provides. To
do so would be to assert the
counsel Of perfection so de"
VOutIy to be wished.
1T becomes necessary to ex-
plain what the formula does
mean positively. 1t means to
me, the recapture of all profits,
in bulk, made by all industries
engaged in war supplies above
a small and reasonable return
on the monies invested.
HIGH TAXES URGED
"ThiS recapture can be done
only through control of
prices, together with increased
taxes in wartime. While
money must be given a wage,
or it will not work, the wage
must be less than In peace
time, and must bear COMPARE
sor with the sacrifices made
by the men in the field.
"SOme of my friends may
disagree with the need Of
wages for capital, but the fact
remains that all history shows
it to be automatic. Indeed, We
take an enormously long stride
forward, and one that will be
attacked bitterly by the con-
Servatives, when we advocate
to clamp down on profit max.
ing, and seek to skeltonize it,
and eliminate it in war. That
Is precisely what I advocate,
and that is what must be done.
II want to put q ceiling over
prices and profits, above which
no prices and profits may 80.
Thereafter a tax program must
be enacted that will take away,
in totally, the spread between
the selling prices and the costs,
plus a reasonable return.
ALL PRICES AFFECTED
"By parallel planning, there
must also be q control over all
prices, goods, foods, rents,
wages, services; in short, Of all
activities that yield profit. All
must be denied the right to in
dulge in a joy ride at the ex.
pense Of the nation"
Mr.. Baruch declined to state
whether he advocated similar con-
troll of profits in times of economic
distress.
Mr.. Baruch said that while war
ought to be avoided at all hazards,
the Nation also should be pre-
pared, if war comes, to meet the
enemy with maximum effective
ness"
Calling attention to the eco.
nomic warfare now confronting
the world and the danger Of a
military conflict, he said:
ut is not generally realized
how embattled the world Is.
While it is true the primary
purpose Of the present struggle
is not to kill and MAIN, yet it
has for its object the restriction
of international commerce with