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COLYER WOULD END EXCESS PROFITS TAX Advances Strong: Reasons for Bcpcnl of Wasteful and Un necessary Law. FORMS ENDLESS SPIRAL Originated to Equalize- - War Prico Fixing: Conditions, It Has Been Failure. Special AmiufcA to Tni Bvx. Washington. Nov. 30. \The tall hould follow the hide,\ was Uio conclu Ion y by Federal Trado Commls- - (loner William D. Colvcr, after ho had given Tub Sun, In an extensive Inter view, his reasons for urging the repeal of the excess pronta tax. \Since as a mattor of fact, the excess profits tax was created as an equalizer In cases of price fixation and Blnce prices tut I lunger u&uu uicii wiub luuauu Its tntlnuance Is removed. I bellove it would be a good thing If the excess profits tax law could be repealed y. Experience seems to have demonstrated that the excess profits tax Is one of the foundation stones upon which tho pres- ent Intolerable price structure has been reared, and which works such hard- ship both upon tho consuming public find so of course upon the business pub- lic. \In the beginning tho excess profits tax, as I understand It, was not a reve- nue device at all. During the war, when It became necessary to tlx prices, It was found that thore was a wldo range in the cost of production of tho same com- modity between tho high cost operations and the low cost operations. So long as the theory Of fixing a single price was adhered to It was necessary to fix that price high enough to bring Into produc- tion the needed output of the high cost operation. \The excess profits tax was proposed as a means whereby unwise profits which might accrue to low cost operations could be .covered back Into the Treusury to provide In part the money iwlth which the Government could pay the high fixed price. In other words, the theory was that by taking back 30 or 50 or 60 or SO cents out of a dollar of undue profits a condition of private profiteering would be avoided. I do not think it has worked out that way. It seems to me that It has been an attempt to lift oneself by his bootstraps, and losing 70 or 60 or 40 or 20 per cent of the energy so em ployed. The Inevitable result has been In aid of the creation of a price struc- ture Intolerable both to the producer and the consumer.\ llelpa Boost Cost of Llvlntf. Mr. Colver holds that the excess profits tax Is a contributing cause to the\ high cost of living. \It seems quite clear,\ he continued, \that one of. the chief contributing causes to the high cost of living Is the excess profits tax. Certainly the excess nroflts tax Is both a burden and a temptation. Is It not true that the ex- cess profits tax boosts costs, raises prices, halts production, breeds waste, extravagance and inefficient business methods and raises the cost of living? I think so. There never was a worse device invented than the scheme of 'cost plus' and the excess profits tax Is In Its essence a cost plus arrangement. \Under a cost plus arrangement say of 10 per cent, profit on cost one can increase his profit by one dollar only by wasting nine other dollars and wo have that curious and Impossible situa- tion of attempting to create wealth by wasting 1L \In (the excess profit tax when a con- cern has reached beyond what Is con- sidered to be Its normal unprofitable- ness the surplus Is partly taken from It by Increasing percentages. What follows? Waste\ and extravagance, or an effort to make 03 much profit with the excess profit tax In operation as though It wero not In operation and that Is done by charging excess profit tax to cost. It means the collection from all the people, when the 60 per cent, ex- cess profits tax rate has been reached, of a dbllar unnecessarily In order that 40 per cent, may be added to divisible profit \And tho excess profits tax or any other tax Is not paid by the taxpayer. It Is passed on, It must be passed on, In the price of tho production to the purchaser of the product and as It passes on and on It grows like a snow- - Dan rolling uown nm unui it roacnes the public. ' And the public, whether represented by a railroad president, a skilled mechanic, a farmer, a merchant, a common laborer or financier, having had the composite tax bill of all his predecessors passed to him, raises the price of his own labor whether that labor be stored up labor in the form of capital, labor of the hands, or labor of the mind, to meet the new cost of living. So the distressing process hav- ing made a complete circle. It starts again, the endless spiral upward.\ Opposed Tax When Sngireated. Mr. Colver explained that the Fed- eral Trade Commission had disapproved the excess profits tax plan when It was r,- X suggested by Herbert Hoover, Food Ad- - f mlnlstrator. on the theory that such taxes would correct certain situations arising out Of the price fixing plans of tho Food Administrator. On July 20, 1018, Mr. Colvor wrote to the 1YMV ut on tho subject This was bef'ji the excess profits tax was Incorporated In the revenuo law, \I stated then,\ said Mr. Colver, \that the Federal Trade Commission dissents wholly and entirely from this theory. Ueforo excess1 profit taxes may bo col- lected from business concerns excess profits must first be taken from the con- suming publlo or from tho Government In tho form of Inflated prices. It Is not business, but the people, both as consumers and taxpayers and bond buy- ers, provide tho money collected Indi- rectly as excess profits taxos. Our un- derstanding Is that the excess profits tax was not a rovenuo device primarily but a device designed, first to discourage profiteering and, second, to equallzo any Inequity which might be worked In tho application of general price fixing rules, where, In order to Becuro production from high cost concerns, prices had been fixed so high as to give undue profits to low cost concerns. It Is not our Idoa that prices should bo fixed hlsh so as to yield excess profits taxes. ' \We dissent from the theory of taking back 30 or 60 or 60 or 80 cents from a dollar Improperly taken from tho people as consumers or from tho Government. It Is attempting to lift oneself by hfj bootstraps and losing 60 or 40 or 20 per cent of the energy applied. A price structuro built upon such a theory ns this cannot and should not bo tolerated hy the pooplo of tho country. \Aside from tho Impossibility of such a principle, viewed from the pubtto standpoint, It has a vicious effect upon business Itself. Tho reflect shows ltt self In tax evasions, and worst of alt In Inviting and encouraging wnsteful and extravagant operations. When a business) roaches tho point that Its ex- cess profits tax will operate to tax away i. considerable part of Its surplus earn- ings It Inevitably Is tempted, and In many oases the temptation has provod Irresistible, to spend extraordinary sums In unnecessary expenditures. These tako tho form of advertising looking to the building up of prosent or future good will or of repairs and betterments not presently needed or made with an eye to the future and In anticipation of a return to pcaco time basis. Such an oxpondlturo Is made on tho theory that out of every dollar so spent the Gov- ernment must contribute unknowingly from 60 to 20 per cent of tho coBt\ STATE TO PRESENT MEDAL TO SOLDIERS Committee Accepts Design by Capt. C. J. Diegcs. Albant, Nov., 30. Tho design of the medal to be presented by the State to the hundreds of thousands of New York State men who entered Uie service of the United States during the world war has been accepted by tho committee hav- ing the matter In charge. Tho commit- tee is composed of Gov. Smith, Adjt-Ge- n. Berry and William A Saxon of the war records bureau. Tho medal was designed by Capt Charles J. Dleges, formerly of tho 102d Engineers, Twenty-sevent- h Division. The face of tho medal presents ns Its most prominent appeal the figure of a doughboy. Behind tho soldier Is a fig- ure representing Liberty, Humanity and Democracy, draped in an American flag, and in the background the navy Is rep- resented by a fleet of vessels.. Tho re- verse shows tho seal of tho State In the upper centre, relieved by a wreath of laurel and oak. The names of the countries In which United States sol- diers fought nro superimposed upon the entwined wreaths. Local armories and the bureau of war records, Adjutant-General'- s ofllce, this city, will bo supplied with blanks on which applications for medals may bo made. PRESIDENTIAL BOOMS WILL ALL BE HEARD Candidates' or Proxies to Be on Hand in Pierre, S. D. Special Despatch to Tin Stnt. Pierre, S. D., Nov. 30. Presidential candidates aro taking a large Interest In the State conventions of all parties to meet hero on Tuesday, as It Is tho first convention which will pas3 on Presi- dential preferences for the next election. Senator Poindoxter (Wash.), is com- ing In person, and Qov. Lowden of Illi- nois will be represented by State Treas- urer Sterling of that State, with the forces of Major-Ge- n AVood being on hand to push the claims of their Former Senator J. Hamilton Lewts of Illinois will bo the main ppeaker for the Democratic list, as Attorney-Gener- Palmer, who was on the schedule, wires his Inability to attend. Military Policeman Held as Slayer Following the death of Private John Dellsslo, 25, whose home was at 476 President street Brooklyn, Sergeant James It Hurley of the military police at Camp Merrltt Is a prisoner cnargen with homicide ot the Hoboken port of debarkation. It was learned yesterday. It Is asserted that Dellsslo was a pris oner In the guardhouse and was shot while attempting with another to escape. CLOTHES OF CUSTOM QUALITY TF, as you doubtless heard in your cradle, to err is human, then a very -- fair proportion of the clothing designers in the United States today are cer tainly human! Without exception, the fin-e- ft tailoring in oAmerica BROADWAY AT 34th STREET ggbgL Mon's Felt Slippers $2 A Very Special Value! With the softest of cushion-lik- e soles. Colors: Blue, Ox- ford Grey, Brown and Khaki. Second Floor. THE SUN, 1919., Broadway Specially Arranged Monday Tuesday An Important Sale of Women's Fashionable Winter Coats Regularly $110.00, a clear saving of $35 m i win j wv bllFCTtlV 1, at $75 Coats, of a most exclusive type for street wear, in straight line and ultra-sma- rt belted models, superbly tail- ored in the most beautiful Winter fabrics loomed Crystal Bolivia, Yalama Cloth, Tinseltone, and Glow, with Muffler or Collars of Taupe Nutria, Natural Raccoon and Australian Opossum. Tiin1i nrnt lmnrlsrvmnlv nil t linprl nnrl Chinchilla warmly interlined. All tho wanted shades. 31 to 48. One style 3'gjjj pictured. York, by \L\ for and Frost Largo Shawl At $55.00 Regularly $85 and $95. A clear saving of $30 to $40 most uncommon collection of strictly tailored and fur-trimm- ed coats, in every Wanted material. Tho model pictured is developed in Silvertip Chin- chilla, a soft, rich-looki- ng material very much in Fashion's favor, Every wanted color, including Reindeer, Brown, Taupe,. Copenhagen and Faisson. At $39.50 tO $195 wonderful collection of p ain tailored and fur-trimm- ed coats for extra large figures, requiring sizes 42 bust. Coats made expressly for the woman of large proportions, but possessing all tlie-ch- io of tho most charming models created for the woman of average size. Sizes Unequaled ! Women's Velvet Bags as pictured today at $3.95 Smart Chiffon and Silk Velvet Bags, in the very newest models with self covered or Victory Silver frames. Lined with Silk File, and may be had Brown and Black. Three styles pictured. Main Floor. Exceptional Values I Boys' Smart Suits Very Practical Gift Blanket Bath Robes for Boys at $2.50 Warm, comfortable Blanket Cloth Robes, in a large variety of youthful pnttcrns. Carefully made and bound in contrasting color cord. Sizes 3 to 10 years. Second Floor. MONDAY, DECEMBER as pictured At $5 Carefully niado suits for boys of 3 to 0 years. The blouse is of fine qual- ity White or Tan Poplin, and the knickers of Navy Blue, Black or Brown Cor- duroy. Early selection Is advised, for this low prico will bo in effect only until our present stock Is exhausted. In the Heart of New Direct Subway, Tube and t i I $75 ff A now A to 52 in A Fourth Floor. pair error the the the gain li2 At One most Frocks created good Crepe, richly beaded or Lined throughout with Jap-Sil- k, and may had modish shades Cocoa, Copen- -' hagen and Tan Fourth Floor. Dressing $8.50 Leather Cases, leather soap brush liquid bottle, mirror, stick. v vFor Immediate Disposal 195 Women's Winter Suits Formerly $59 to $95 - Reduced to , ... The best opportunity for the a high-grad- e at a sub- stantial reduction in price aimounced this season. The styles afford liberal in strictly beautifully embroidered, and handsome fur-t- r mined the variety materials is most unusual, including: f Duvet Lainc, Suede, Broadcloth, Silvertone, Tinsel-ton- e, Tricotinc, Full Wool, Velour Checks, Oxfords and beautifully silk lined. 34 to 5012 bust. Fourth Floor. Cowhide Brief Cases make very practical gifts. Here one of unusual merit. At $5 Mada of split cowhide in Russet and Black, may bo had with .'I or 4 pockets, and sizes 11x15 or 16 inches. Splendid value. Floor. Women's Hand-Mad- e Silver Cloth Slippers Made to sell for $15 a in an important sale $7.95 $795 A well known New York shoo retailer recently placed a large order for these beautiful slippers, but through an on part of manu- facturer order was duplicated. His loss is your hence this truly remarkable sale. to 8i2, and widths AAA to G. None Sent C. O. D., Exchanged or on Approval Second Floor. Women's Dainty Georgette Crepe Frocks In an important sale today $35 of tho charming for tho Mid-Wint- er season, cleverly de- veloped in quality Georgette hand embroidered. be in the very of Beige, Blue and 2, in Main 1 . . . 1 1 - 4 -- 1 at 34 th St. Men's Fitted Cases, Black Dressing lined ' and with military brushes, box, tooth hold- er, comb and shaving $47 selection of really suit selection tailleur, effects, and of de Yalama, Velveteen Sizes from is Sizes t.t.Vit litted x You Cannot Do Belter Than Select Your Ftfr Coat Today While prices are at least 25 below those which must prevail later There never was such a scarcity of fine pelts, nor were furs of every kind ever in such demand. Since we assembled our pres- ent stock of fine fur coats prices have advanced at least 25, affording a very liberal saving on any of the follow- ing coats, if you make your selection now! We warrant all our fur i aarmentatobeoflheverti finest v . v quality in material and manship examples of the In hialwRZ art in flip mnl-in- n nf tine fur garments. Hudson Seal Coals in smart sports model. Made of choice quality skins Now $275 Hudson Seal Coats in stunning sports model with collar and cuffs of Skunk or Beaver Now $375 Handsome Mole Coats with large collar and cuffs ' of SquirrcL Now $435 Luxurious Mink Capes of dark silky skins, trimmed with tails and paws Now $650 Beautiful Caracul Coats with natural Squirrel Collar and cuffs Now $250 Natural Muskrat Coats in smart belted models, very suitable for Misses and Juniors Now $175 Exquisite Marmot Coats in 40-in- ch model with large natural Raccoon cojlar Now $175 Swagger French Seal Coats in 36-in- model . .Now $175 Sixth Floor. m.50 $29.60 $18.50 $10.50 Gift Suggestions From Ihe Safe Jewelry Department Very Reasonably Priced Men's 12-si- ze 20-ye- ar Gold Filled Watches, with seven-jewele- d lever movement..., $10.50 Men's at Solid Gold Knives in engine turned and hand-grave- d designs. Two blades '$9.50 Men's 14-Ka- Solid Gold Belt Buckles in ham- mered or engine turned design $22.50 Men's 14-Ka- Solid Gold Cuff Links in new tapes- try engraved effect, with the enamel work in Black, Navy Blue or White $12.50 Women's 14-Ka- Solid Gold Watches with Wal-tha- m movements. Ribbon bracelet style with gold dial $38.50 Women's 14-Ka- Solid Gold Watches with reliable 15 jewel movement, in hand-engrav- case. Gold dial $29.50 Women's 20-ye- ar Gold Filled Watches in ribbon bracelet style, with reliable cI movement . $19.50 Genuine Cornelian Cameo Brooches mounted on round, oval or octagon shape filigree, solid gold mounts $18.50 Main Floor. 1 Jl II
