OCR Text |
Show FOOD PROFITEERS ARE DENOUNCED BY PRESIDENT WILSON l Comprehensive Extension of the I Present Food Control Act ( Is Recommended. J SITUATION CRITICAL AND DIFFI- r CULT AND MUST BE MET WITH COURAGE AND RESOURCE. Calm and Deliberate Consideration Rather Than Hasty Action Is Called For by the Present Situation Situa-tion of the Country. Washington. Extension of tho prcs-1 prcs-1 pnt food control net, both ns to its pe- j rioI of operation and to include .ill I . roiiiniodilies indisputably ncessjinVs "nf life, regulation of cold storage to j define the limits within which food- I stuffs can be bold; marking of nil goods destined for interstate com- merce with the price at which they left the hands of the producer; federal fed-eral licenses for all corporations and persons engaged in interstate commerce, com-merce, which will provide for competitive com-petitive selling, and passage of the pending bill giving the capital issues committee control of security issues, nre the remedies proposed by President Presi-dent Wilson, in his address to congress con-gress to meet the existing high cost of living. The president said in part: Gentlemen of the Congress: I have sought this opportunity to address ad-dress you because it is clearly my duty to call your attention to the present cost of living and to urge upon you with all the persuasive force of which 1 am capable the legislative measures which would be most effective in controlling it and bring-in-it-cTown. The prices the people of this country are paying for everything that it is necessary for them to use In order to live are not justified by a shortage in supply, either present or prospective, and are in many cases artificially and deliberately created by vicious practices which ought immediately imme-diately to be checked by law. Profiteers Lawbreakers. Some of the methods by which these prices are produced are already illegal, some of them - criminal, and those who employ them will be energetically proceeded pro-ceeded against. But others have not yet been brought under the law, and should be dealt with at once by legis'ation. With the increase in the prices of the necessaries of life come demands for in- ! creases in wages demands which are ' Justified If there be no other means of enabling men to live. Upon the increase of wages there follows fol-lows close an increase in the price of the products whose producers have been accorded ac-corded the increase not a proportionate increase, for the manufacturer does not content himself with that, but an increase in-crease considerably greater than the added wage cost, and for which the added wage cost is oftentimes hardly more than an excuse. The laborers who do not get an Increase In pay when they demand it are likely to strike, and the strike only makes matters mat-ters worse. It checks production; if it affects the railways it prevents distribution and strips the markets; so that there is presently pres-ently nothing to buy, and there Is another excessive addition to prices resulting from the scarcity. Conditions Not "Natural." These are facts and forces with which we have become only too familiar; but we are not justified because of our familiarity famil-iarity with them or because of any hasty , and shallow conclusion that they are "natural" and inevitable, in sitting inactively inac-tively by and letting them work their fatal fa-tal results if there is anything that we can do to check, correct or reverse them. We must, I think, frankly admit that there is no complete immediate remedy to be had from legislation and executive action. The free processes of supply and demand will not operate of themselves, and no legislative or executive action can force them into full and natural operation until there is peace. Must Know Terms of Peace. There can be no confidence in industry, indus-try, no calculable basis for credits, no confident buying of systematic selling, no certain prospect of employment, no normal restoration of business, no hopeful attempt at reconstruction or a proper reassembling of the dislocated elements of enterprise until peace has b n established, and, so far as may be, guaranteed. Our national life has no doubt been less radically disturbed and dismembered than the national life of other peoples whom the war more di -rectly affected, with all its terrible ravaging and destructive force, but it has been nevertheless profoundly affected af-fected and disarranged, and o.ur industries, indus-tries, our credits, our product! ve capacity, ca-pacity, our economic processes are inextricably in-extricably interwoven with those of other nations and peoples most intimately inti-mately of all with the nations and peoples peo-ples upon whom the chief burden and -- confusion of the war fell and who are now most dependent upon the cooperative co-operative action of the world. Exports Greatest In History. We are just now shipping more goods out of our ports to foreign markets than we ever shipped before not foodstuffs merely, but stuffs and materials of every sort; but this is no index of what our foreign sales will continue to be or of the effect the volume of our exports will have on supplies and prices. It is Impossible yet to predict how far or how lung foreign purchasers will be able to 11 nd the money or the credit to pay for or sustain such purchases on such n scale; bow soon or to what extent foreign manufacturers can resume their former production, foreign fanners get their accustomed crops from their own fields; foreign mines resume their former output, foreign merchants set up again their old machinery of trade with the ends of the earth. All these things must remain ntireitain until peace is established estab-lished and the nations of the world have concerted the methods by whirl) normal life and industry are to he restored, All that we shall do In the meantime mean-time to restrain profiteering: and put the life of our people upon a tolerable footing will be makeshift and provisional. provi-sional. There can he no srith rl condition condi-tion here or slsewhere until the treaty of peace is out of the way and the work of liquidating the war has hero he-ro me the chief concern of our government govern-ment and nf t lie other govern men t s of 1 1 1 e world. "1-2u rope will not. ca ntiot i-ecoii p her en pi tal or put her restless, distra cteri peoples to work until she knows exactly exact-ly where she stands in respect to peace; and what we will do is for her the chief question upon which her quietude qui-etude of mind and confidence of 'purpose 'pur-pose d-ponds, While there is any pus-ability pus-ability that the peace terms ma y be changed or may be held long in abeyance, abey-ance, or may not be enforced because of divisions of opinion among the powers pow-ers associated aga inst Genua ny. it is idle to look for permanent relief. Immediate Relief Measures. By way of immediate relief, surplus stocks nf both loud and clothing in the hands of the government will he sold and of course sold at prices at which there is no profit. And by way of a more permanent per-manent correction of prices surplus stocks in private hands will be drawn out of storage and put upon the market. Fortunately For-tunately under the terms of the fond-con-troL act the hoarding of foodstuffs can be cheeked and prevented, and they will be, with the greatest energy Foodstuffs can be drawn out of storage and soid by legal action which the department of justice will institute wherever necessary; but as soon as the situation is systematically systemati-cally dealt with it is not likely that the courts will often have to be resorted to. Much of the accumulating of stocks has no doubt been due to the sort of speculation specu-lation which always results from uncertainty. uncer-tainty. Would Have Prices Plainly Marked. I would also recommend that it be required that all goods destined for interstate in-terstate commerce should in every case where their form or package makes it possible be plainly marked with the price at which they left the hands of the producer. Such a requirement would bear a close analogy to certain provisions of the pure food act, by which it is required that certain detailed information in-formation be given on the labels of packages of foods and drugs. And it does not seem to me that we '.ould confine ourselves to detailed measures of this kind, if it is indeed our purpose to assume national control of the processes of distribution. I take it for granted that that is our purpose and our duty. Nothing less will suffice. We need not hesitate to handle a national question in a national na-tional way. We should go beyond the measures I have suggested. We should ; formulate a law requiring a federal ! license of all corporations engaged in interstate commerce and embodying in the license, or in the conditions under which it Is to be issued, specific regulations regu-lations designed to secure competitive selling and prevent unconscionable profits in the method of marketing. Law Would Do Much. Such a law would afford a welcome opportunity op-portunity to effect other much-needed re- i forms In the business of interstate shipment ship-ment and In the methods of corporations which are engaged in it; but for the moment mo-ment I confine my recommendations to the object immediately in hand, which is to lower the cost of living. We are dealing, gentlemen of the congress, con-gress, I need hardly say, with very critical and very difficult matters. We should go forward with confidence along the road we see, but we should also seek to comprehend com-prehend the whole of the scene amidst which we act. There is no ground for some of the fearful forecasts I hear uttered ut-tered about me, but the condition of the world is unquestionably very grave and we should face it comprehendingly. The situation of our own country is excep-tionately excep-tionately fortunate. We of all peoples can afford to keep our heads and to determine de-termine upon moderate and sensible courses of action which will insure us against the passions and distempers which are working such deep unhappiness for some of the distressed nations on the other side of the sea. But we may be involved in their distresses dis-tresses unless we help, and help with energy en-ergy and intelligence. Disregarding the surplus stock in the hands of the government, there was a greater supply of foodstuffs in this country coun-try on June 1 of this year than at the same date last year, in the combined total to-tal of a number of the most important foods .in dry and cold storage the excess Is quite 19 per cent. And yet prices have risen. Law Department Active. The attorney general has been making a careful study of the situation as a whole and of the laws that can be applied ap-plied to better it and is convinced that, under the stimulation and temptation of exceptional circumstances, combinations of producers and combinations of traders have been formed for the control of supplies sup-plies and of prices which are clearly in restraint of trade, and against these prosecutions pros-ecutions will be promptly instituted and actively pushed which will in all likelihood likeli-hood have a prompt corrective effect. There is reason to believe that the prices of leather, of coal, of lumber and of textiles tex-tiles have been materially affected by forms of concert and co-operation among the producers and marketers of these and othtir universally necessary commodities which it will be possible to redress. No watchful or energetic effort will be spared to accomplish this necessary result. re-sult. I trust that there will not be many cases in which prosecution will be necessary. neces-sary. Public action will no douht cause many who have perhaps unwittingly adopted Illegal methods to abandon them promptly and of their own motion. Retailers in Part to Blame. There can be little doubt that retailors retail-ors are in part sometimes in large part responsible for exorbitant prices; and it is quite practicable for the government gov-ernment through the agencies 1 have mentioned, to supply the public with full information as to the prices at which retailers buy and as to the costs of transportation they pay in order that It may he known just what margin mar-gin of proht they are demanding. Opinion Opin-ion and concerted action on the part of purchasers can probably do the rest. IxH me urge, in the first place, that the present foodstuff control act shnufd be extended both as to the period of time during which it shall remain in operation and as to the commodities to which it shall apply. Its provision against hoanHnsr should he made to apply not only to food but aNo to feed stuffs, to fuel. "to clothing, and to many other commodities which are indisputably in-disputably necessaries of life. A it stands now it is limited in operation to the period of the war and becomes inoperative in-operative upon the formal proclamation of peace. Hut I should judge that It was clearly within the constitutional power of the congress to make similar permanent provisions and regulations with regard to all goods destined for Interstate commerce com-merce and to exclude them from interstate inter-state shipment if the requirements of the law are not complied with. Some such" regulation is imperatively necessary. 1 1 would ma lei i. illy add to the serviceability serv-iceability of the law, for the purpose- we now have in view, if it were also preserved pre-served that all goods released from storage stor-age fur interstate shipment should have plainly marked upon each package the selling or market priee at which they went into storage. l:y this means the purchaser would always be able to learn what profits stuud between him and the producer or the wholesale dealer. The world must piy for the appalling destruction wrought by the great war, and we are part of the world. We must pay our share. For five years now the industry in-dustry of all Kurope lias been slack and disordered. The normal crops have not been produced; the normal quantity of manufactured goods has not been turned out. Not until there are the usual crops and the usual production of manufactured goods on the other side of the Allan tic can Kurope return to the former conditions; condi-tions; and it was upon the former conditions, condi-tions, not the presen t, that our economic relations with Kurope were built up. We must face the fact that unless we help Europe to get back to her normal life and production a chaos will ensue there which will inevitably be communicated communi-cated to this country. Fur the present, it is manifest, -we must quicken, not slacken, our own production. U. S. Must Hold World Steady. We. and we almost alone, now hold the world steady. Upon our steadfastness and self-possession depend the affairs of nations na-tions everywhere. It is in this supreme crisis this crisis for all mankind that American must prove her mettle. In the presence of a world confused, distracted, dis-tracted, she must show herself self-possessed, self-contained, capable of sober and effective action. She saved Europe by her action in arms; she must now save it by her action in -peace. In saving Europe she will save herself, as she did upon the battlefields of the war. The calmness and capacity with which she deals with and masters the problems of peace will be the final test and proof of her place among the peoples of the world. And. if only in our own interest, we must help the people overseas. Europe is our biggest customer. We must keep her going or thousands of our shops and scores of our mines must close. There Is no such thing as lotting her go to ruin without ourselves sharing in the disaster. In such circumstances, face to face with such tests, passion must be discarded. discard-ed. Passion and a disregard for the rights of others have no place in the counsels of a free people. We need light, not heat, in these solemn times of self-examination self-examination and saving action, i Everyone who is in real touch with the. ! silent masses of our great people knows that the old strong fiber and steady self-control self-control are still there, firm against violence vio-lence or any distempered action that would throw their affairs into confusion. 1 am serenely confident that they will readily find themselves, no matter what the circumstances, and that they will address ad-dress themselves to the tasks of peace with the same devotion and the same stalwart preference for what is right that they displayed to the admiration of the whole world in the midst of war. Sinister Influences at Work. And I enter another confident hope. I have spoken today chiefly of measures of imperative regulation and legal compulsion, com-pulsion, of prosecutions and the sharp correction of selfish processes; and these no doubt are necessary. But there are other forces that we may count on besides those resident in the department of justice. We have just fully awakened to what has been going on and to the influences, many of them very selfish and sinister, that have been producing high prices and imposing an intolerable burden on the mass of our people. To have brought it all into the open will accomplish the greater part of the result we seek. I appeal with entire confidence to our producers, our middlemen and our merchants to deal fairly with the people. peo-ple. It is their opportunity to show that they comprehend, that they intend in-tend to act justly, and that they have the public interest sincerely at heart. Labor Must Consider. I believe, too, that the more extreme ex-treme leaders of organized labor will presently yield to a sober second thought, and like the great mass of their associates, think and act like true Americans. They will see that strikes undertaken at this critical time are certain to make matters worse, not better worse for them and for everybody else. The worst thing, the most fatal thing that can be done now is to stop or interrupt production, or to interfere with the distribution of goods by the railways and the shipping of the country. There are many things that ought to be corrected in the relations between be-tween capital and labor, in espect of wages and conditions of labor and other things even more far-reaching, and I, for one, am ready to go into conference about these matter with any group of my tellow countrymen who know what they are talking about and are willing to remedy existing conditions by frank counsel rather than by violent contest General Interest First. No. remedy Is possible while men are in a temper, and there can he no set- . tlement which does not have as its motive and standard the general interest. in-terest. Must All Work Together. Threats and undue insistence upon the interest of a single class, make settlement set-tlement impossible. I believe, as I have hitherto had occasion to say to the congress, that the industry and life of our people and of the world will suffer irreparable damage if employers and workmen are to go on In a perpetual perpet-ual contest, as antagonists. They must, on one plan or another, be effectively effec-tively associated. Have we not stead-Iness stead-Iness and self -possession and business sense enough to work out that result? In the meantime now and in the days of readjustment and recuperation that are ahead of us let us resori more and more to frank and intimate counsel and make ourselves a great and triumphal nation, making our s. 1 ves a uni t'-d force in the 1 i fe of t lie world. It will not then have looked to us for leadership in vain. |