Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-11-20
DEALERS PROFITS UNDER GOV.
EMINENT REGULATION RE.
Suits IN TEMPORARY DROP.
SOME DEALERS SELLING
At MUCH LOWER FIGURES
Situation Can Be Only Temporary,
However, as When Stocks Vet to be
Bought on Present Market Are For
Sale, Price Must Go Up-Study OF
Situation Interesting.

canned goods are just now being soih
at lower prices to the consumer than
they, have been in recent months. this
fact does not warrant the public in re-
lieving that canned goods as a whole
will remain cheaper for any great per-
iod Of time. In fact, in the opinion Of
wholesalers, while canned goods may
not be higher than they were early IN
the fall, they probably will Unusual as
it may seem with the trend OF canned
goods prices climbing all the time some
dealers are selling canned goods for
less than they were before. The cause
is government regulation and licensing
of dealers, which went into effect Nov.
I.
Summarized this is the effect Of gov
eminent regulation and licensing OF
dealers as it affects the consumer. The
government said, In effect, to dealers,
that beginning Nov. 1, they were pro-
hibited from specializing in their pro-
ducts and they would be allowed pro-
fit Of not more than the average pro
fit they had enjoyed on the same arti-
Giles during the years 1911, ~, and 13.
Watch the Result.
The result has been this, and no re-
putable dealer dares disobey, for the
penalty is revocation Of the license,
which would put him out Of business.
Beginning Nov. he was forced to
add only this average profit for the
three years before the war to the cost
of his canned goods. For example, II
he had the canned goods in stock or
/ bought, and the price he had been
charging before Nov. 1 was more than
the cost plus his average profit on the
same articles in the three years be-
fore the war he had to reduce his
prices on those articles.
This Is exactly what a number Of re-
tail dealers in this city have had to do,
with the result that they are now
selling canned goods for less than they
sold them month ago. In some cases
canned goods are now being sold for
10 or IL cents d can, and in quite
few cases for 2 cans for quarter,
where formerly there was not much.
If any canned goods that could be
bought at this price prior to Npv. !,
when each dealer added the profit he
felt justified in adding and was not
under government regulation.
Lower Prices Temporary.
The logical coclusion seems to
be that this sag dn prices can only be
temporary, and it will last only so long
as canned goods bought ct prices lower
than what now prevail, remain in the
dealers hands. The reasonable con-
clusion from the consumers standpoint
would be then to buy canned goods
now.
If, for example, the retailer who Is
now selling canned goods that cost
him, say. $3.50 a case, plus his regu-
lated profit, runs out Of those canned
goods, and the next lot he buys costs
him 81 per case, he then must add
his regulated profit and the price to
the consumer must advance.
This seems what would probably
happen, as the whole trend Of the
canned goods market Is and has been
upward for some time. The packs gen.
orally, we're short Of practically all
kinds.
Chaotic Sales Conditions.
The governments regulation Of
wholesalers has created most unusual
conditions in the trade. It has created
wholly similar condition in the
wholesale trade that 1t has in the re-
tail market. Wholesalers who were
carrying stocks of certain merchandise
Nov. that they had bought much be-
low the current market prices, by rea-
son Of the purchase having teen made
long time prior. have been forced to
sell these articles far below competi-
tors prices. In some cases, in the
canned goods market, certain grades OF
canned goods are being sold at reduc-
tions Of % or so per cent below the
current prices. 1t is from such stocks
of canned goods that retailers have
bought that forces them to sell at
lower prices. However, these whole
salers, like the retailers, have been
compelled to speculate in merchandise,
which before Nov. 1, resulted in some
tremendous profits being made.
Holding Sugar Tight.
Reputable dealers take the govern
ment license as stern affair and are
not taking any chances disregarding it.
Let's FLETCHER Company's government
license, for example, lists sixty -four
articles, including hundreds Of kinds.
for the sale of which it is strictly ac-
countable to the government. The
articles, all edibles, represent about 10
per cent Of its business.
This company looks on the govern
ment regulation Of the sugar business
as a Godsend. Manager w. T. Smith
said that there was no doubt but that
sugar would be selling at wholesale for
at least SIS had not the government
fixed the price and taken over the en-
tire distribution. AS result the sugar
is being parceled out in small lots, but
every one Is getting enough for his i'm
mediate needs, and in repeated cases
where wholesalers or retailers have
larger stocks than for their immediate
needs the government has taken 1t
away from them. The beet sugar crop
is being taken up as fast as it Is being
produced, and there will be no cane
sugar on the market before February.