Evening star., 1945-09-08
Right to Profits Held
Omitted in MESSAGE
Fails to Conform to Truman's
Fair Play Concept, Says Writer
By David Laurence

Dy D0OfU Laurence
President Truman is essentially fair
man and, to be sure, nowadays he is a
very busy man. - whoever No. II him
prepare Ri .cngthy address to CongisSs
didn't call his attention to the things
W. -cn the late President Roosevelt
omitted from his Economic Bill Of
Rights"
The most important omission-which
may be understandable so far as Mr.,
Roosevelt was concerned but which
hardly conforms to the Truman concept
OF fair PLAYS the one related to the
right OF businessman to earn a profit.
Nowhere in the so-called Bill of
Rights is the right of the businessman.
large or small, conceded. Indeed. the
only mention as to the right of
businessman is in his relations with
other businessmen in respect to fair or
unfair competition.
Basic in any sound or stable system
OF national economy is the right of a
businessman to have a profit left after
he deducts his labor and material costs
and his taxes. Unless a businessman
can see some assurance in that direction
ne cannot create more jobs or even
preserve the jobs he already has created.
Employment of Savings.
Mr.. Roosevelt thought about the right
OF farmer and worker to ADEQUATE
earnings, but forgot the most important
held OF investment, namely, the emplov-
TTy,la
put into enterprises that can earn
wages for those savings there can be no
stable system and hence no security.
Nowhere in the Bill of Rights" is there
any mention of the right of money in
vested by widows and orphans or by the
thrifty citizen to earn a fair return.
Mr.. Roosevelt's omission was noted at
the time his Bill of Rights" came out
and there was widespread comment.
Wnlle Mr.. Truman, on the other hand,
stands committed to the Roosevelt
policies, he is not committed to the
omissions though it is quite possible
the White House advisers this time had
such a huge job assembling from the
- various memoranda the sections making
up the $4,000 words that they forgot
all about the principal layer of Amer
lean business and industry-the man
agement men who must earn a profit
Tor owners or find themselves out of a
Job and thus throw many workers out
of jobs, too.
The question is already concrete he.
cause certain controls over prices are
being retained at Mr. Truman's insist
ence. Hence if the price ceilings are
Kept, and costs, nevertheless, are allowed
TO rise, the margin of profit will gradu-
ally be narrowed. This means retarda.
ton OF any tendency to expand in those
businesses where profits are reduced to
the danger point and it also means that
the Government loses valuable amounts
in tax receipts.
Squeezed During War.
Business during the war has been
subjected to squeeze from the upper
and neither millstones. Prices could not
be raised and wages were stabilized but
IN between came the tax drain so that
large number Of the big companies did
not net profits equal to prewar years.
There doubtless were isolated cases in
which war contractors made big sums
but in the main the percentage of profit
to net income was reduced.
Now with the controls of wages and
salaries lifted wherever price ceilings are
not affected, the Federal Government
agencies are bound to examine the profit
structure. If they refuse to allow in
creased prices, the profit margin NAV be
wiped out and more unemployment
forced on the country. If they allow
price ceilings to be raised. the imitation
spiral gets added momentum.
In the face of this critical situation
1t is regrettable that the advisers to the
President didn't call his attention to the
great psychological lift which the whole
management personnel of the Nation
would have gotten if he had added to
the Roosevelt bill of economic rights a
simple statement to the effect that it is
still legitimate in America to show an
honest profit after payment of taxes.