The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-10-30
RETAIL FOOD
PIRATES" NOW
TO BE CUT OFF
Hoover Finds Way to Reach
Them Under Liccns-
ing Act.
TAKES EFFECT THURSDAY
Dealers Who Try to Profitccr
to Be Denied Supplies
by Wholesalers.
TAKES EFFECT THURSDAY
Speci0l Dcapdtch 10 LIE SrN


WASHINGTON, Oct. 29.-Profitcering
1000 retailers arc 10 be cut from their
source Of supply under the licensing
regulations which go into effect on
Thursday. the Food Administration an
nounced to-day. The Lever food and
fuel law provided no direct regulation Of
the retailers except those doing a busi-
ness above 100000, but Food Admins
traitor Hoover has found way TO oet at
them through the licensing system which
controls the wholesaler and jobber from
whom the retailer gets his supplies.
No manufacturer or other handler Of
food will be allowed to sell to any re-
taller anywhere In the United States who
makes unreasonable profits or who lays
In large stocks Of foods for speculative
purposes. This Is one Of the most
drastic OF the new food regulations, all
Of which MFR. Hoover will announce be-
fore Thursday
Firms selling to retailers in violation
OF this rule will be liable to revocation
OF 'heir licenses. without which they will
not be permitted TO do business.
Rule Reaching Retailers.
The rule governing the situation fol-
lows:
The licensee shall not knowingly sell
any food commodity to any person en-
gagged in the business Of selling such
commodity who shall after this regula-
tion goes into effect violate the pro-
visions OF the act OF Congress approved
August 10. 1917. by making any un-
reasonable rate or charge in selling or
otherwise handling or dealing in such
commodity or by holding. contracting
or arranging for . quantity thereof in
excess of the reasonable requirements O,
his business for use or sale by him for "A
reasonable time.
The small retailers of food, Of whom
there are several hundred thousand in
the country. while exempt from the
licensing provisions are nevertheless SUBJ
ject to other provisions OF the food con-
troll act" says an announcement by the
Food Administra tion. Every retailer,
a. well as every other handler Of food.
's forbidden under the law to make any
unreasonable charge, to hoard, to
monopolize. waste or destroy food, or TO
conspre with any one to restrict the
production. distribution or supply or
exact excessive prices OH any necessities
There are no penalties improvided. bu.
the Food Administra tion hopes that the
ARRANGEMENT OF restricting supplies to
vlolators of the law will be some effect
for the retailer will find himself unable
10 buy goods from any wholesaler or
manufacturer.
Federal Food Administrators in all
the States will be directed to keep a
watch FOR v!olators and send to the
Food Administration the names Of re-
taiers asking excessive prices.
Honest Dealers Need Not rear.
The Food Administration" the An
nouncement adds. does not intend TO
disturb any legitimate operations and
Will initiate measures only against
hardened and persistent violators OF the
law. 1t takes the position that the
great majority OF food sellers. retailers
as well as wholesale. are patriotic and
honest and are making every effort To
comply with good business principles
and sell to the consumer at the lowest
possible prices Such dealers will be In
fact protected from il!egit!mate compe-
t!tion. Those few who persist In abus-
ing their opportunities and continue to
take advantage OF the emergency caused
By the war will receive attention.
Special regulations to prevent suecu-
lation in canned goods also will be nut
into operation Oh Thursday by the Food
Administration. All Gamers will be
placed under license and forbidden to
make future sales OF canned corn. peas.
tomatoes. salmon and sard.nes before
February !, This date later may be
extended. depending on the needs OF
our allies and the American military
forces. AS In other industries con-
trolled by the Food Administration,
Gamers will be required to sell their
products az reasonable margin or
profit regardless OF market conditions
or replacement values
Federal Trade Commission investiga-
tors will help State Fuel Administrators
fix fair retail price margins, More than
dozen started out to-day for various
parts of the country. The prices are
subject to change by state .>dministra-
tors when too high or too low. Com
plants of violation OF the law fixing
prices will be turned over by the state
Administrators to the Trade Commits
sion. investigators"