Evening star., 1938-01-03

should not be favored over earned
income.
1t is human nature to argue that
this or that tax is responsible for
every i'll. 1t is human nature on
the part Of those who pay gradu-
ated taxes to attack all taxes based
on the principle of ability to pay.
These are the same complainants
who for a generation blocked the
imposition of graduated income
tax. They are the same complain
ants who would impose the type of
fiat sales tax which places the bur-
den of government more on those
least able to pay and less on those
most able to pay.
Says Corrected Measures Should
Not Restore Hardships.
Our conclusion must be that
while proven hardships should be
corrected, they should not be COR
rected in such way as to restore
abuses already terminated or to
shift a greater burden to the less
fortunate.
This subject leads naturally into
the wider field of the public atti-
tude toward business. The objec-
tive of increasing the purchasing
power Of the farming third, the
industrial third and the service
third Of our population presupposes
the cooperation of what we call
capital and labor.
Capital is essential: reasonable
earnings on capital are essential;
but misuse Of the powers Of capital
or selfish suspension of the employ
ment of capital must be ended, or
the capitalistic system will destroy
itself through its own abuses.
The overwhelming majority OF
business men and bankers intend to
be good citizens. Only a small
minority have displayed poor citi-
zenship by engaging in practices
which are dishonest or definitely
harmful to society. This state
ment Is straightforward and true.
No person in any responsible place
IN the Government of the United
States today has ever taken any
position contrary to it.
But, unfortunately for the coun-
try, when attention is called to,
or attack is made on specific
mlsuses Of capital. there has been
deliberate purpose on the part
OF the condemned minority to
distort the criticism into an attack
on all capital. That is wilful de-
ception but it does not long deceive.
Deception Seen in Reports
On Criticism Of Business Acts.
II attention is called to, or at
tack made on, certain wrongful
business practices, there are those
who are eager to call 1t IAN attack
on all business" That. too. is
wilful deception that will not long
deceive.
Let us consider certain facts:
There are practices which most
people believe should be ended.
They include tax avoidence through
corporate and other methods.
which I have previously men,
toned; excessive capitalization. in
Vestment write-ups and security
manlpulations: price rigging and
collusive bidding in defiance of
the spirit Of the antitrust laws
by methods which battle prosecu-
ton under the present statutes.
They include high pressure sales
manship which creates cycles of
overproduction within given indus
tries and consequent recessions in
production until such time as the
surplus is consumed; the use Of
patent laws to enable larger cor
porations to maintain high prices
and withhold from the public the
advantages of the progress Of
science; unfair competition which
drives the smaller producer out
OF business locally. regionally or
even on a national scale; intimida-
ton OF local or State government to
prevent the enactment of laws for
the protection Of labor by threat
enlng to move elsewhere; the shift
ing OF actual production from one
locality or region to another in
pursuit of the cheapest wage scale.
The enumeration of these abuses
does not mean that business as a
whole is guilty Of them. Again, it
Is deception that will rot long de-
ceive to tell the country that an
attack on these abuses is an attack
on business.
Another group Of problems affect
Ing business, which cannot be
termed specific abuses, gives us
food for grave thought about the
future. Generically, such prob
lens arise out of the concentra-
ton of economic control to the
detriment of the body polite
control of other peoples money,
other peoples labor, other peoples
lives.
Some Capital Concentration
Found to Be Unjustified.
In many instances such concen-