Evening star., 1941-09-24
Morgenthau Urges
go Profits Limit III
During Emergency
Secretary Asks Congress
For Control Of Farm
AS Well as Other Prices
Continued From First Page)

Continued From First Page)
tax on individuals in business or
partnerships.
Two Republicans Divide.
Two Republican members clashed
sharply over Mr.. Morgenthaus ex-
cess profit plan.
When Representative Crawford OF
Michigan asserted that he agreed
with the Secretary, Representative
Dewey of Illinois, former Assist
ant Secretary of the Treasury,
sought Qualification whether Mr..
Morgenthau meant to limit all cor
porationS to per cent on their IN
vested capital or whether he would
make some allowance for what the
average earnings had been.
Representative Dewey contended
that some firms which had been
operating on a low capitalize ton
would be seriously hurt by the per
cent limitation.
Il mean corporations should be
satisfied with 6 per cent on each
dollar actually put into the busi-
ness" Mr.. Morgenthau said.
Il agree with YOU" Representative
Crawford said. adding, DO you
agree with that, Mr.. Dewey?'
No. I do not" said Representative
Dewey emphatically.
Farm Price Control Asked.
Mr.. Morgenthau told the commit
tee ne thought 1t would be un-
democratic TO put ceiling on
wages. He did favor Federal con-
troll of farm prices and said the
pending bills exemption of these
was its major defect
II strongly recommend that this
inf1eXibility be removed he said,
In the interest of the attack upon
imitation, in the interest of the
standard of living Of our people and
in the long run in the interest OF
farmers as we'll.
Saying that present farm prices
were not excessive. he explained
that he was worried about the pos
sibility that agricultural prices,
without Federal brakes, would con-
tinue to rise as they did in the
World War
He added that. after the first
World War initiation. agriculture
was the hardest hit and the SloWest
TO recover
Opposes Control of Wages.
The Secretary, however, opposed
suggestions that wages be made
subject to the same controls.
In free countries labor is not a
commodity. human beings are not
property, and they should not be
treated as such" he said.
1t was his opinion that If the Ma
ton takes adequate measures TO
keep the cost of living from rising
and imposes adequate taxes on busi-
ness profits, then We will have re-
moved the major causes for de-
mands for general wage increases y
Mr.. Morgenthau added that since
collective bargaining contracts con-
trolled wages in the major portion
of defense industries, a general wage
increase was unlikely as long as the
cost of living was kept in line.
Saving that price control was only
one of the steps necessary TO prevent
imitation, he added:
IF we are TO be sure Of victory
in the fight against initiation we
must prepare further to increase
taxes. We may have to extend the
general controls over bank credits.
We shall certainly have to reduce
capital expenditures for non-defense
needs and widen the sale of defense
savings bonds and stamps. It would
also be wise 10 extend the social
security program to absorb purchas-
ing power now and pave the way
for increased purchasing power after
the emergency"
Mr.. Morgenthau said the cost of
pork chops typified the imitation
| threat
He recalled. The housewife knows
that pork chops that were 20 cents
a pound in January we're 30 in Feb
ruary, 81 in April. 80 in May. 35 in
June, 81 in July. 38 in August and
Al at the moment, a total rise of 40
per cent in those nine months" He
noted also sharp rises in the cost of
eggs. coffee, sugar, -four. textiles,
building materials, chemicals, and
hides and leather.
Would Free Farm Surpluses.
Mr., Morgenthau, who was once
chairman of the Federal Farm
Board. also reiterated recommen-
dations that in times of high
prices" the Government put on the
market some of the cotton, wheat
and corn that has been stored under
Government programs during per-
iods of low prices,
The Secretary added that if in
f1ation were permitted to go on I'M
checked we may find that our de-
fense program will cost us double
without giving us single additional
gun or plane for that extra ex-
penditure." He said the rise in
prices which had occurred already
will cost us billions of dollars"
He also noted that the Govern
ment employs nearly 100000 civili-
ans who will need wage raises
II tho cost of living continues tn