The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-05-26
BIG PROFITS MADE
IN FOOD RODUCTS
State Department Says Some
Richmond Prices Are
Unwarranted.
INVESTIGATION is MADE
Remedies of Market Regulation
and Municipal Control
Are Favored.
INVESTIGATION IS MADE

Retail dealers In Richmond some
times charge exorbitant profits to
consumers OF food products Such Is
the conclusion OF tho State Dairy and
ROOD Department, which has been
conducting an investigation for COM
par'son of the prices charged by the
wholesaler and jobber, and those by
the retailer for the products which
enter into the daily consumption of
the people. These Investigations were
made in tho various sections of the
state as OF date May 10 by the in
spectors of the department. but only
the Richmond figures are so far avail
able When other localities are heard
from. II is expected that there Will
be further interesting reading.
Conclusions are drawn by Deputy
State Dairy and Food Commissioner
b. l. Purcell to the effect that in
many cases retailers are securing
prices far In excess of cost He does
not attempt to put all the burden of
the high cost OF living on tho retail
dealer. but arrives at some deductions
which no presents to the public for
consideration. Public markets and
price regulation are suggested.
Figures are given to show tho ulti-
mate consumer and the housewife the
difference between what the dealer
pays and what he gets from the
purses OF the public.
Causes Conc Into.
Tho departments statement says:
The best prevailing cash prices in
the different localities were asked for
by tho inspectors. and the quotations
are from reliable wholesalers or job
bers. The retail prices were obtained
in tho open markets from the retailers,
and are supposedly the lowest prevail
ing cash prices for the commodities
quoted. 1t must be borne in mind that
large part of the profits of tho re-
taller Is consumed in the demands
made by the retail purchasers on their
Erocerymen and marketmen In tho
prcsent-day system of ordering by tel
ephono for Immediate delivery, the re-
taller is required TO keep. for the sat
, isf2ct!on OF his customers, horses and
wagons or motor vehicles for quick
deliveries. The purchaser also re-
quires many of his purchases TO be de-
liverci to him in package form. all OF
which entails an extra cost to the re-
taller for the services rendered. and.
of course, must be added to tho charge
ne makes for the goods delivered. Tho
majority of the consumers OF to-day
arc not satisfied TO live as their foro-
fathers have lived. and indulge in high
living, which fact must be set against
the theory of the unwarranted high
| cost of living for most things used.
Tho unusual dryneas of last years
! growing season ourtailed the produc
ton OF hay for stock as we'll as many
articles of human food. and created N
| larger demand for wheat. corn and
| other cereals and grains for feeding
to cattle as a substitute for hay. This
! demand has materially lessened ths
! supply OF these grains for human con-
Z tiftNo mn {,,-
creased the price for them. The short
crop of hay produced is therefore res
sponsible In part for the high prices
OF human foods.
Tho severity OF tho past winter has
| also had its effect on the prices OF
food products.
Prices often Too High.
None OF those causes. however. would
| Justify the profits In some instances
charged the consumer by the retailer
| for tho products sold to him. Tho
question arises: is there way to cor
rect the uniustitiable profits sometimes
charged by the retail dealer? Public
| opinion will in n measure be effective
In controlling this condition Compe-
| tition may do the rest. II these are
not affective in correcting the trou-
BILE, then possibly the remedies which
have bacn applied successfully In some
localities may have to be resorted to.
the municipal authorities or Councils
of the cities. and 1t may be that final
relief will have to come through mar
kets established under municipal nu-
thority or regulation OF prices by the
various municipalities.
Tho obstacles to regulation OF prices
are appreciated, but when city or
town owns It's market place. the right
to sell products IN the market place
could carry with IT an agreement a
prerequisite to rental OF space that
such rules and regulations ms were duly
adopted for the management of the
market place should be observed. Pro-
vision could DO made in the regula-
lions for prices which the dealer would
| not be permitted to exceed. This ar
rangement would not exclude the right
to sell at any price at othor placss but
would prove e practical determining
factor for reasonable prices on the ma
| Jority OF food products the average con-
sumner uses.
The average gross pront of tho re-
taller in Richmond is shown below for
tho different commodities. 1t must be
borne IN mind. however. that the re-
taller sustains losses from spoilage in
perishable food stuffs. and inedIble
parts of meat food products. which
| losses materially curtail his profits.
Richmond Retailers Profits.
On coffee. from 90 per cent to rs
! per cent: on teas. from 60 per cent. to
| $50 per cent; sugars, granulated. .o9
! per cent; other than gTanulated. from
! 22 per cent. to 90 per cent; pork, eT
per cent; breakfast bacon. sides and
J hams. AZ per cent: -four, from per
/ cent. to II per cent; lard, 90 per cent;
lard compounds. 81 per cent: cheese
81 per cent: eggs. 36 per cent.
cereals. As per cent; fresh beef. aver
age for all outs. A per cent; veal
! average for all cuts, 81 por cent: lamb
average for ali cuts, so per cent; vego-
| tables. fresh (onione, cabbagos, snaps.
= lettuce. cymlings, tomatoes), from
| 100 per cont. to 600 rer cont; green