Salt Lake Telegram | 1918-07-10 | Page 1 | Beavy Profit Taxes Urged by Hoover to Block Extortioners

HEAVY TAXES I I UR URGED GED 8 By HO HOD 0 VER 19 10 I BLOCK EX Price Fixing Valuable but Not Sufficient to Eliminate Eliminate Eliminate nate Profiteering Food Head Informs C i Senators S S c S By By United Pr Press ss WASHINGTON W. W July 10 Governmental price pr fixing win will never vv eliminate profiteering gj F Food Fod od Administrator Administrate Hoover declared today in a alette letter to i immons mons c chairman airm nf of the the senate finance finan e committees Hoover urged heavy profits profIts' taxes taxed as the only means I of returning to the pub public i ori oney ta taken e by prof profi He declared ho however hoever ever the e price fixing policy polley will be continued b because of t the e. e sl Y exist existing in jn ne nearly every eom community Ho Hoovers Hoover's yer's letter G ter was was' written at Simmons Simmons' request est to give the the senate information as tp to the probable effect effecT of of bf government price fixing on proposed war tax legislation Many m members mb rs feared price fixing hid had in In man many instances so reduced profits tha thai increases increase in war ar pr profits rits or excess s profits taxes would be i impossible possible without injuring busi busi- ness PRICE FIXING HOLDS SUG SUGAR R. R Hooyer Hoovers letter disposes of or this theory theory the the- ory In the view of pr Senator Simmons Ho Hoover ver de declared lared for Instance that if it itt Ulie t th price of or sugar had bad not virtually be bee n Ji fixed food administration r through em n th s between producers and refiners riner sugar wo would ld be retailing at at 20 20 c nt l a pound This he said s ld would have have added 00 s 3 ar arto ir irto I to the country's sugar bill 1 But even even- with the price price- fix fixed d Hoover sa said d beet Met sugar producers will I profit heavily some making as high I i as per cent The only way the I government can reach these profits Hoover pointed out Js Is s through taxa taxa- I i tion S I WAR PROFITS HATEFUL Extra profits out of ot war are hateful hateful hate hate- ful writes Hoover That any man would take a profit in greater measure II because because th the goods he produces' produces are i needed for war or because of or the scarcity scarcity scarcity scar scar- i city creat created d by war is abhorrent to all d decent cent people and rightly so when the I youth of or the nation are being called up upon n t to sacrifice all they haveThe haveThe have The The government is endeavoring to reduce pr profiteering through regulation and trade agreements and without a great measure of success There are however certain economic economic- ne necessities s which must dominate war regulation of industry and which in themselves cannot eliminate profiteering and which in ii my view can only be pushed If It reinforced ed by war var profits REGULATION ESSENTIAL My view Is that broad regulatory I restraints which are arenow pow In force are essential in commodity handling in the face of shortage 1 I am equally convinced convinced con con- vinced that a large per percentage of ex extra extra extra ex- ex tra normal profits earned out of war conditions whether Py Jay by mote more fortunately fortu situated members of regulated l I trades or oz or otherwise should be appropriated appropriated I to the public treasury through r taxation S