The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-10-19
Profiteering by Small Deal.
er Must Cease or Congress
Will Be Invoked.
ADMINISTRATORWARNS
Says Beef and Flour Are
Sold Far in Advance of
Legitimate Profit.
SUGAR SHOULD BE 3 CENTS
Predicts That Essential COM
modities All Will Decline
Before End Of Year.
ADMINISTRATORWARNS
SUGAR SHOULD BE 3 CENTS

SPECIAL DespefeA to Tss suA
WASHINGTON, Oct IA deliberate
failure Of retail dealers In many Of the
most important food commodities.
notably nour and beef, to lower the..
prices IN proportion to the decreasing
wholesale prices was Acknowledged in
a formal statement by Food Admins.
traitor Hoover to-day.
This means. according to authorita eve
information, that Congress will b.
asked when it meets in Dscemba. to
give the Food Administration as exten-
s!ve control over the retailers Of the
nations foodstufts as 1t now has over
the wholesalers, jobbers and nanufac-
turers through the license system The
only chance the retailers have Of escap-
ing this action, il is said. is TO abandon
the widespread prohteer.ne in which
they have engaged while wholesale
prices were dropping. They are in effect
on probation until Congress meet
The license system, as it applies to all
wholesa lers brokers and commission
men handling the funda mental food.
will become operative November i.
Blank applications for licenses are
being sent out by the Thousand da.Iy
by the Food Adninistra, the
licensing system, however. is not per
mitted by law to include the retailers
with the exception OF thosc doing more
than 100000 yearly business II ie
this situation which tas given the rc-
tailsrs FREQ rein to boost their nrices
ole ,l.a1
doEn.
Prices should Br Lower.
There ,s no reason, Nr. Hoover said
to-day. why nearly al, food comnlodi.
ties should not show reductions between
now and the end of the year All the
intermediate agencies between the
farmer and the retailer have come unde.
regulation and prices all along the line
up to the retailer have been showing an
appreciable decline.
Retail prices on -four. beef sugar and
several other important commodities
have been the most disturbing 10 the
officials of the Food Administration An
investigation is in progress 10 determine
why they have not responded 20 the
lowering wholesale costs. Within a fep
days Mr.. Hoover will have published
in the principal consumer centres of thu
United states figures showing exacti!
What the retailers are paying for tt-
commodities. 80 that the consumer can
determine the profteering margin ths
dealers are giving themselves II this
does not accomplish the desired end
congress Will hs appealed to and tbs
retailers will be forced TO charge only
fair profit or go out of business.
Flour retailers are charging from
H'5o to " more barrel than the cos
to them warrants. Mr.. Hoover said. The
excuse that the retailer is working of
bis old supply which he bought at the
higher prices meets little sympathy n;ts
the Food Administration. as the fact 10
that the nour supply in the United Ststes
for almost two months WA at such n
low point as 10 arouse the fear OF the
FOOD authorities here that there would
be real famine
sugar Advance Cntustt6ed.
New York city in the middle of Ser.
tenper was reduced TO th.rty>six hour
supply, The Food Administration n
that time reauisitioned 100000 barrel,
or nour designed for export and euper.
vtsed Its distribution Philadelphia was
oown to week supply. Chicago WA
little better off and the whole country.
was in danger of serious shortage
Mounting retail Sugar prices in Esnn
ern cities in the last three days arc due
solely to an arbitrary advance b. IN.
reta', dealers in the face OF a shor,
supply, and does not beur any relation
to the prices at which these sugars bays
been purchased. Mr. Hoover asserted
Inc price or beef at the packers doors
Is l%t cents pound. as compared with
l6 cents in July. while tho averae. ~.
tail price OF round steak in 1876 cities
Is 81 cents pound, against - cent, a
pound In July.
Early Reduction. Forecast.
Mfr Hoovers statement follows
Tho Food Administration cor.,de~s
that, subject TO cooperation from ,hs
farmers and the retailers. the corne,
has now been turned in high pr,ce.
and that most OF the essential commod,.
ties should one after another continue
to show reductions between now ana
the end Of the year, The Food Admirta.
tration has no control of either ths
grower or his organizations nor ~ ,hs
great majority of retailers. TIE founsa.
tions have been laid for regulations Of
the intermediate trades, and where thss,
regulations have come into force and
the trades are cooperating flnelv con-
siderable results are evident in the
wholesale prices.
The current prices AZ which royr IL
being sold at the mill door IN tu.e bass
vary somewhat with tho locality ana
freight charges on wheat. Toledo show
Ing the lowest prices a, $40 for Dr..
patent and 81 for second patent tho
highest being Buffalo at 5000 for Arm
patent and 5000 for second pater,,
Minneapolis being 5000 for frst patert
and $l0.+6 for second patent This
shows large reduction undor AuSust
prices
THE regulations on tho distributio,
OF wheat and the manufacture Of Nous
were pu, INTO force the middle oC Seps
tembe'
Retail Price SIN Wish.
"'rhe average retail price O, Arsn
patents In 7ss citiss on October "a vs3