The Nonpartisan Leader Newspaper, June 24, 1918, Page 12

— will be dangerous to go in urging bond purchases. That'limit is reached just where bond purchasers cut into the necessary capital of the producer or the labor efficiency of the worker. Sacrifice is good so long as it remains sacrifice of nonessen- tials. If it becomes sacrifice of efficiency its ef- fect will be wholly injurious. To avoid this danger line heavier taxes are neces- sary. The purchasing power of the government must be maintained, but not at the expense of the loss of efficiency in production. - Obviously we should look first to excess profits, which are them- selves a sufficient proof that those taking them have an undue advantage, both over the govern- ment and over other producers. WHENEVER ANY PRODUCER MAKES PROFITS IN EXCESS OF NORMAIL, PRE-WAR PROFITS, THAT IN ITSELF IS SUFFICIENT PROOF THAT THE WAR BURDENS ARE NOT EQUALLY DIS- TRIBUTED. J WHO ARE THE PROFITEERS? It is morally and economically wrong for any one to take more profit than he had before the war, ex- cept in the case of those industries the earnings of which were below normal before the war. It is not only just, but necessary to war efficiency, that they should be raised to a higher level, either by a lightening of tax burdens, or by an advance in prices or wages. But where a corporation was making 8 to 10 per cent on its investment before the war, there is absolutely no excuse for its doubling, trebling, or many times multiplying that rate during the war. The result is that to the ex- tent of the excess profits the money the govern- ment raises by taxation or by selling its bonds is drained out of circulation without its getting an equivalent in war materials. Those profits should be prevented from accumulating, or should be taken back and put to work after they have accumulated. It has been denied that there are any such excess profits. 1In its 1917 report the United States Steel corporation gives its 1916 profits, over all expenses and taxes, as 48.5 per cent on its common stock, and its 1917 profits 39.3 per cent, the average for the two years being 43.8 per cent. According to their own reports, abstracts of which were published in the leading financial periodicals, the average 1916- 1917 profits of nine steel companies was 48.1 per cent annually. The average of six copper com- panies was 78.9 per cent each year. The lowest net profit of these nine steel companies was 32.2 per cent in 1916 and 35.6 per cent in 1917. The highest was 90 per cent in 1916 and 71.5 per cent in 1917. The five big packers’ profits average 33 per cent in 1917; millers average 31.8; four other food manufacturing concerns average 78.9 per cent, one of which, manufacturing and selling products used largely in the patriotic substitution for wheat and sugar, made 74.6 per cent last year. Tobacco companies average 25.5 per cent for the two years; Central Leather, 31.8; oil companies run from 18.77 per cent to 955 per cent; coal companies from 14 per cent to 50 per cent. According to their reports U. S. Envelope makes 97.7 per cent; Atlantic Gulf shipping, 50 per cent; DuPont powder, 77.49 per cent; ] CAN'T HIDE THE PROFITS | and American Smelting 54.9 per cent. These earnings are all, or nearly all, in excess of liberal allowances for amortization of capital, depre- ciation, and all state and federal ¢ taxes. In many cases there have been also liberal allowances for permanent improve- ments, and in a few returns to capital that look suspiciously like attempts to evade the payment of war taxes. In fairness it must be said that many of these interests express themselves as not being opposed to higher taxes on war profits. Robert H. Mont- gomery, writing for a leading financial journal, even goes so far as to advocate taxing excess war profits 100 per cent, provided that an assurance be given that taxes will be put on a pre-war. basis im- mediately at the close of the war. The first part of this proposal shonld meet with nation-wide ap- proval, even though it is coupled with the assertion that Wall street is the most patriotic interest in the country, and that farmers are making immense . , o Dicpg=> What an ostrich Big Biz is! The ostrich thinks it has concealed itself from pursuit when it has hidden its head under the sand of the desert. And Big Biz thinks it will escape observation by talking loudly about its patriotism and by calling its critics disloyal. But the golden plumage of the profiteer still presents a shining mark. This ostrich hasn’t fooled the Nonpartisan farmer—it hasn’t fooled President Wilson, either. profits out of the fixed price on wheat. All other interests can be depended on to go as far as the big corporations and the meney interests, in any proposition for higher taxes on war profits, and all will as honestly pay them. WHERE TO PUT THE BURDEN The country is back of the financial policy of the president. The people should insist on higher taxes on: Excess war profits; other large in- comes, or at least the re- moval of the present dis- crimination against earned incomes; lar ge inherit- ances; luxuries. Large industrial inter- ests have begun a drive for import duties, that would favor American manufac- turers. That should be re- sisted. First, because such duties would produce al- most no war revenue, and, second, because the ex- pressed purpose is to retain such taxes after the war, so that the big monopolies can continue to charge war prices to our own people. Big business will strive for the abandonment of all price-fixing and all govern- ment regulation after the war, for the return of all internal taxation to the pre-war basis, and for the retention of any protective duties they may have suc- ceeded in having imposed. Since this article was written the president has made plain to congress the will of the people with re- gard to war finances. Both the president and ‘Secre- tary McAdoo have outlined a program of taxation sub- stantially in agreement with the principles which the National Nonpartisan league has stood for from the beginning. The League and other such organizations have done the country an invaluable service in consolidating pub- lic opinion in support of these principles, for only with the majority of public opinion behind him was it possible for President Wilson to force his pro- gram against the powerful interests opposing it. He still needs that support. The people must not relax their efforts. It must be constantly urged that war can not be waged without sacrifice; that any one who, after paying taxes and making volun- tary contributions, retains a profit in excess of what he would have had if there had been no war, is making no sacrifice. i : Idaho Women Help the League ChooseCand'id'ates County Conventions Seated Wives and Grown Daughters of Leaguers, and Together They Picked Out Good Progressive Delegates—Now for a Loyal Nonpartisan Ticket Pledged to Democracy - OR the first time women have 71 stood side by side with their husbands and fathers and taken an active part in the’ selection of Nonpartisan league delegates to a Nonpartisan convention. To the women ‘of Idaho belongs Other precinct caucnses were held June 8 and 15, At these caucuses the women in the League farm- ers’ families attended and participated. The women of Idaho have the franchise, and as active voters they took up the work with the men at the pre- cinct caucuses. These woman members of the League are exerting a powerful influemnce on its work in this state. At the first caucuses held the women were out with the men, and they assisted in the selection of the rounty convention delegates. FULL OF LOYALTY AND ENTHUSIASM These delegates are a representative body. Only good, clean, progressive farmers have been named, and these men are the kind WHO WILL STICK. 4 The greatest enthusiasm marked the June 1 cau- cuses. Loyalty was the keynote of them all, and this distinction; Saturday, June held in a large mumber of the counties in Idaho. R (o _<'~';"«"-xmfim::wW«mw-wmmmmmmflwm$mflkmflmm§ . strong resolutions were adopted pledging the sup- port of the organized farmers of Idaho solidly be- hind President Wilson and thc national adminis- tration in its war program both at home and abroad. One precinct adopted a resolution putting the voters of Idaho behind “President Wilson and his - cabinet,” taking in-this manner a slap at those poli- ficians sind agents of special privilege who have- . been active in their condemmation of certain mem-" More fhan 10,000 farmers participated in the June 1 caucuses. Although the notices pf such eaucuses were mailed to each member of the League in the counties where such gatherings were held, hundreds failed to receive their notices. - As a result of this steps have been taken to trace down these letters to find ot why they were not delivered. WHERE NO ONE INTERFERES No efforts were made in any part of Idaho to in- terfere with the organized farmers. Hundreds of new' members have come into the League during the ‘cancus meetings. Many of these late comers were farmers who have been holding back waiting to see just what the League intended to do in this Red Cross collections were taken up bj- the farm- PAGE TWELVE "~ ers present before adjournment, and at all'the members of the League pledged themselves to de- vote as much of their time as possible to war work. Resolutions asking the federal government be re- quested to"'send speakers into Idaho to attend the farmers’ picnics to discuss patriotism and the war work were adopted at- several precincts. ‘These farmers at the.same time bitterly resented insinu- ‘ations being hurled against them by political oppo- nents questioning their loyalty to the United States. ALL SIGNS - OF VICTORY SRy The Idaho caucuses have been an immensé suc- cess. For the first time in the history of the state, the farmers, 61 per cent of the population in Idaho, have been given an open voice in the selection of thg men the_y want to lead them in a political cam- paign, and in this selection their wives and daugh- ters have been given a voice, ;i The women of Idaho will be the first suffragists .in the Nonpartisan league to help elect a real all- Afnericnn ticket pledged to true democracy this winter, and they are preparing to take advantage of ‘this opportunity. Their activity at the caucuses mqneates an unusually healthy interest in politics this campaign in So the success of the ticket is assured.” - . i