The San Francisco call., 1909-05-23
MERCHANTS ROUSED
BY FLINT'S ATTACK
Retailers Ridicule Charge That
They Are Reaping ExOrbi-
tant Profits
Attempt TO Place Tariff Exac-
tiOns at Door of Dealers
StirS Protests

Merchants Of San Francisco have
united in directing a storm of ridicule
and protest against statements made
by Senators Hale of Connecticut and
Flint of California during the tariff
debate in congress-. The charge made
By Senator Flint that the real reason
for high prices in America was not the
tariff duty on raw materials. but rather
exorbitant profits demanded by retail
ers and middlemen, has made him the
principal target for the retailers scorn.
Leading merchants of all classes yes
terday made known their opinions to
The Cali Some who were outspoken
in their criticisms of Flint's attitude
were not willing to be quoted, but 9TH
ers equally prominent were glad of an.
opportunity TO express their views.
STATEMENTS BY MERCHANTS
Al. Peyser, general manager s. y.
Wood & Co.-The percentage of profit
made by the retailer in America today
IS less than ever before in the history
Of the country ana the margin of profit
made by the retailer in San Francisco
and in California generally is less to-
DAY than in the history Of the city. If
the business in which 1 a minterested
here was not also a manufacturing
business 7 would not want TO be in the
clothing business in San Francisco on
account of the small margin of profit
left for the man who has TO buy his
goods Of an outside manufacturer.
George ROOs, of RoOs Bros.-Senator
Flint may be a very excellent United
States senator in congress, but he very
evidently doesn't know anything about
the merchandising business. The mar
gin Of profit made by the retailer is
constantly becoming less. The manu-
Hacturers are continually sliding prices
upward while the retail dealer must
keep them at the same level and in ad-
dftiOn meet the demands OF his custom
ers for finer stores and increased non
producing expenses
il. SamueIs of SamueIs' Lace House
For the last five years the price of
manufactured goods has been steadily
climbing while the retailer has had
10 shorten his percentage of profit and
not advance the price. I read with
great deal of amusement Senator Flints
speech in congress and I wish I could
have an opportunity to show him our
books In the staple lines, cotton goods,
domestic silks and wooden goods, the
merchant must invariably sell practI-
CallV at cost lie must nave an I'M
rnense volume Of annual business in or
DER to make any profit at all. There
fore, merchants have been reducing
their margin Of profit continually in
the face OF increasing prices for their
stock in order to produce the necessary
volume of business. At the present
time merchandise is being sold to con-
sumers all over America at a less mar
gin Of profit to the retailer than ever
before in its history"
FLINT Is OFT OF TOUCH
Harry Goldberg. manager Of Swell
dou-"I think Senator Flint has been
in the government service so long he
has rather got out o, touch with the
business world. The profits made by
merchants today in handling goods is
very small, ard less than ever before"
A. l.. KOIIs, general manager STRAIT
ton's-The great wOolen mills of
America have the elothing manufac-
turer and retailer absolutely at their
mercy. They set their own prices.
Protected by the tariff wall, they boost
the price on the manufacturer, he in
turn passes it on the middleman, and
the middleman to the retailer, each
with a decreasing margin of profit.
When it gets TO the consumer the price
Is high. but the man who sells 1t to
him makes the least profit Of ALL The
margin of profit in the clothing bust
ness is now so small that a merchant
can hardly endure in business unless
be can attract an immense trade"