Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1910-04-21
WHO GETS THE PROFITS.


Not long ago a prominent wooden ana
worsted goods manufacturer stated that
he would be perfectly satishsd with 10
cents proAt on the cloth he produced
that would make an average priced suit
Of clothes. This meant IS cents profit
on three and one-qusrter yards Of cloth
as that Is about the qua nifty required
for suit. THIS remark seemed so un-
reasonable that we took particular pains
to sunstantiate II, and found ma nufactur-
ers quite willing to admit that sUch
profit was very satisfactory indeed
Further investigation satisfied us that
ID blue serge suit was a good standard
20 work on. aud We have recently follow
cd a piece O! the goods from tho mil, to
the retailer with some very rema rka Bile
results. which demonstrate the fact that
the produce OF tho goods Is getting the
small end. The manufacturer sells his
cloth to the cUtter-up for about So. 50 and
makes a possible profit OF So cents on the
yardage necessary. The clothing manu-
facturer makes up the suit. trims Il and
sells II to the retailer for about $40, and
the clothing manufacturer gets a profit
Of close Ia $3.50. The retailer buys for
$l9 and sells for So. getting IS as his
profit, and also taking the largest profit
from mill to wearer Thus. as the fabrics
proceed from raw wool TO m8de-,ip suits
the larger factors take the smaller profits
ard the man standing next 10 the pub
|, lie, with the least Investment and a mini
mum risk takes the largest rake-ofr and
without the quive- Of muscle tells
his customers that the high price OF wool
and the tariff makes all clothing higher
priced
The clothing manufacturer 1. the least
prominent factor In tho DEAL 80 that
naturally the manufacturer OF cloth IL
given the entire blame on account Of his
efforts TO keep protective tariff In force
and permit his operatives to live like
human beings. the colored man In the
woodpie is the retailer, as investiga ton
shows, and to great extent the retailer
is responsible for most Of the high cost
OF living agitation and excepting for po-
litical reasons the government investiga-
tons Will SHOW this to he the case. Ger.
tainly the mill man with his plant and his
costly raw material, with his orEanxa-
ton OF help and his power and lighting
costs. cannot be begrudged a pront Of 81
cents on $5 suit OF clothes, and when
II comes to investigation to discover
where the trouble lies. the manufacturer
Of the fabrics must be passed by and tho
clothing manufacturer and the retailer
must answer for the existing conditions.
profit OF Is on an investment OF ~ Is
an unreasonable percentage when the in
vestment Of the retailer Is considered. as
his fixed charges are nominal when COM
pared with those of the manufacturer 90
the cloth who must pay dividends, keep
his plant up TO high standard. provide
a surplus for bad times and take the
risks for about 10 per cent profit. and
| the retailer with practically no risk takes
3 per cent.
The clothing manufacturer Is largely
| financed l1y the goods rnanufs cturer. an
other risk which has elements Of In
creasinE The cost OF production as tho
fabrics are oftertines sold on six months
credit while the Wholesale clothier sell
dom sells on longer credit than 80 days.
Tie man wearing spring suit a. the
present time IL quite likely 20 be wear
ing goods that the Mill has not received
paw for. vet the wesrer has paid the re-
taller and ths retailer has paid the
| wholesaler. and this money NAV be in
use financing some othe- line Of goods
Whichever way We may Wow tho situa-
| ton the goods manufa cturer - eating
the small end