Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-03-09
RETAILERS IN BAD WAY
Witnesses Say Advanced Prices
Steadily Decreasing Profits.
BUTTER RATES FIXED AT ELGl
Movements of Market Taken TO IndI
cnte Combination 20 Keep Up
Prices-Butter BIen Deny
Any Agreement.

WASHINGTON, March s-Retail meat
dealers today placed upon the farmers and
the packers responsibility for the higher
price Of meat in testimony given before the
select senate committee which began its
inquiry into the increased cost OF living.
Five retail men from New York, Phila-
dephia, Baltimore and Washington were
heard and Walter Brown, a Washington
dealer who kills his own meat. was the
only one who did not admit that the price
Of meat had not gone up at least 10 per
cent during the last five years. Mr. Brown
insisted that prices were practically the
same now as then All agreed. however
that competition among the retailers kept
the price to the consumer as low as pos
sible consistent with the price charged by
the wholesaler
Each witness denied the charge that the
retailers were responsible for prevailing
prices and none would admit that any
agreement existed among them as to prices.
Whiel no one charged that the packers
were all in a combination, all the witnesses
who had dealings with them declared there
seemed to be no competition among them
for the trade Of retailers and that their
prices ranged abotu the same. When
complaint was made to the packers about
plafned that stock was scarce.
Brown Denies Increase.
Walter Brown. retail meat dealer, said
retail prices of meats were about the same
they were five years ago.
Then. l gather from your testimony that
there has been an unjustified cIamor on
the part fthe public that there has been
an increase in the cost OF meat?" inquired
Senator McCumbor.
Yes"
J. c. Walker the other witness said he
bought his meats In New York because the
best quality was shipped there from all
over the country. He said beef had ad-
yanced Is per cent and poultry and pork
so to 100 per cent In ten years.
He said he Had made inquiry from
Armour and Company, the packers, to
learn why meat had gone up and was told
that this was because there were % 900 900
fewer hogs and 100000 fewer cattle in the
country than there were ten years ago. He
said that on the day after It was announced
that the senate was to make an lnvestiga-
tion the price OF Elgn butter to dealers
throughout the country dropped cents
pound.
what, In your personal opinion, does
that indicate to your asked Chairman
Lodge.
'Ie looks to me like combination fixes
the price" replied Mr.. Walker.
Competition Among Retailers.
John Rohlman, who conducts market
in New York city, was the first witness
at the afternon session. He told the com
mittee that competition among the re-
tailers in New York was so keen they had
been unable to keep pace with the steadily
increasing prices, which the WHOLESALERS had
forced upon them during the last fifteen
years. He said the increase during that
period amounted to about cents a pound
on beef both to the retailer and the con-
sumer
Asked by Senator Simmons why the re-
taller had not added something to the
price TO the consumer to cover his in
creased expense for help and rent, the
Witness said:
= The merchants in New York CITY are
being crushed to the wall by the whole
salers. who represent the packers We
have TO sell at the lowest possible price,
otherwise others will undersell and we
will lose our trade"
lie declared that the retailers had no
agreement among themselves and that
they had no agreement with the whole
salers. Beef had Increased about 20 per
W. III AANd years, ne SdlNi anu pork ana
poultry had doubled in ten years.
staple Groceries Advance.
Questioned as to the price of staple gro
eeries, S, K Harrison of Baltimore said
they had increased. When he suggested
that his firm had been forced to quit
handling cheaper grade of green tea
because Of the tariff. Mr. smoot inter
rupted impatiently:
The tariff had nothing TO do with it,
II was the pure food law"
The witness said there had been a 10
per cent increase In the groceries I'm which
his firm dealt during the last five years
Mr., Harrison said that the Elgin market
controlled butter prices He declared the
prices had recently dropped cents a
pound without any explanation, but that
butter had again advanced cents.
B 7. Lawrence, retail meat dealer
from Philadelphia. said prices of meat
had been Increased by the Wholesalers of
late years, but he said he had still been
able 70 make profit or from IS TO Is
per cent without an unreasonable increase
TO the consumer. The committee will meet
again tomorrow. The wholesalers win be
heard next and then the packers
Buttef Men Plead Not Guilty,
ELGlN, Ill, March SD. S. Pearsau, a
member OF the Elgn Board Of Trade and
representative putter dealer, today de-
MED that the plan to investigate the high
prices Of living had anything to do with
the action OF the Elgin Board OF Trade In
reducing the price OF butter.
Butter prices" said Mr. Pearsall. had
, become 50 high that the average citizen
was unable to buy butter. and this class OF
buyers turned 70 the purchase OF oleo-
H6a,garlne. High prices created a surplus
~ he butter supply which had to be sold
The only way 10 sell It was to lower the
price, Whom the board reduced the cost
from &c cents 10 20 cents a pound the COM
modify again came within each Of the ordi-
nary buyer"
Joseph Newman, another leading dealer,
eorroborated Mr. Pearsall's statement He
~. a that prices had been .,flrndn