The Spokane press. [volume] (Spokane, Wash.) 1902-1939, 1909-05-27
MERCHANTS AS WELL AS CONSUMERS GoU
The following inquiry has been received:

The following inquiry has been received:
ITO the Editor: Do not the retail merchants overcharge
the consumers and would any tariff revision help u.s. or
would merely help the retailer? Does not the retailer
now figure from Is to 80 per cent profit Consumer
AS general proposition the retail merchant could not
overcharge if he would, and would not if he could.
he could not, because his competitors selling at fair
prices, would get all his trade.
ewoud not because he seeks by fair prices and honest
dealing to build up an element called "good WILL, which
is of tremendous value.
Many of the things sold by retailers have their retail
price fixed by the manufacturer. This is especially true
whenever the manufacturer is trust 1t is also true that
on trust made goods the price to the is higher
and the profit to the retailer is smaller than goods not
handled by monopoly or trust.
The reason is that the competition that fosters fair
dealing between retailer and compels ndepend
ent wholesalers and manufacturers to charge reasonable
prices and to give good goods. Once trust secures
complete monopoly need not fear competition and it
and does fix not only the price receives but also the price
the consumer shall pay the retailer
Before answering "Consumer's second question: it is
necessary to make quite clear what meant by profit To
buy 10 cents dozen and sell them at Is cents does
not mean that the has made five cents profit Retail
merchants must pay rent taxes Insurance. and they
must figure losses by of damaged and lost goods
bad accounts and all such.
1t fair to say that the retailers real profit is what
remains after paying all expenses and fair salary for the
merchants own time. -.......- 49,. ....
This idea of proft' makes that word mean the same
as dividends and it is fair to say that no retail mer
chant makes such profit at the rate of 20 per cent
goods he sells to the trust ''dvidends is
and bad accounts taken Of This matter neatly
thrashed out in the senate the other day between the blind
senator Gore of Oklahoma, and Spoot the Mormon
tor from Utah.
Adrich and Hale demanding high tariff for the cotton
and wooden mills of New England practically indicted the
merchants of the country of being the who faten
the consumer
Gore denied this He said
Yon say sir that the retailer takes profit of SO per
cent But that's gross profit not net profit Out of that
must come rent taxes wages freight osse and all other
charges 1t is not dividend such has been declared bv
the New England cotton and wooden manufacturers who
are asking us for more "protecton. They have paid
dividends OF 66 per cent in single year. How will the
senator from Maine (ale) explain these enormous these
extortionate divdends?'
Senator Hale didn't attempt to explain and Smoot
jumped in with question He Asked
Wlll you name manufacturer who has declared such
a dvidend?"
Smiling blandy, the blind senator replied:
1.-The Troy Cotton e. Wooden mandatory in 1907 de-
cared dividend of 81 per cent The Achusnett Cotton
Manufacturing Co. of New Bedford Mass the same year
declared dividend OF 66 cent and the Dartmouth Cot
ton mandatory of New Bedford the same wear also de-
cared dividend of &c per cent?
Senator Smoot II should like to ask the senator if
that dividend was payable in cash or was it stock
divdend?" ~
Senator Gore: cit was in cash; and in order to shield
such enormous dividends the future they have resolved
to double their capital stock If there be any other INQUIRY
l shall yield
But Smoot had enough, and the New England senator's
looked relieved when he let the matter drop Gore
Tor another question: and none being asked he concluded
Sir, is miserable sham to try to say that the mer
chant is robblng his customers The trusts seeking
shield magn the retail merchants of the United STATES
IL is not true, and will not sit in silence and hear the mil
hons OF retailers IN this country made scapegoats to bear
away the sins of the greedy trusts and monopoes in this
country" " WIS
LABOR o; s: ssn s.asss s.t ;ss ss,s