Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-08-24

Il II a. y
ment price for tho. 1917 wheat crop. DR.
Garfield's price fixing committee. It wai
said yesterday. would be ready TO an
nounce . price within few days
DR.. Garfield announced last night he
would institute licensing system for
all coal dealings from the mine to the
retailer and that IL prices were fixed
for retailers the licensing would be ex-
tended to cover retail DEALINGS
Follows Trade Board Idsas.
The president in his order. followed
closely recommendations made by the
federal trade~commission in its recent
report on prodd costs and prices,
and he also hardened to the plea Of the
commissioner for action to relieve the
country of the burden of excessive
margin manipulation of jobbers.
In it's report to the president, the
trade commission said:
1.-THE speculative transactions Of job
bers were the most striking feature Of
the panic market. AS a class they took
full advantage of the abnormal demand.
Some frankly stated that they were out
to make all the money they could
1.-The majority averaged double or
triple their normal gross margins Of
profit, and number averaged Ave or
six times the normal margin. In the
eastern markets individual sales were
frequently made by jobbers at gross
margins Of 81 to Sc ton, instead Of
the ordinary eastern margins OF 10
cents to fifteen cents.
Coal was often sold by one jobber
to another. In random selection Of
142 high premium purchasers by retail
ers fifty-six were found to have passed
thru the hands OF more than one jobber.
A number of these shipments passed
thru as many as three or four hands,
and one thru five hands, each 5obber
generally taking a large profit. Some
times the same coal went thru the
same jobbers' hands twice.
mo doubt normal costs of~the job
bling business were somewhat increased
by prevailing conditions. The credit
risk taken by the jobber was greater
altho in many cases he required the re-
taller to pay cash in advance. There
was risk Of direct losses II the market
should fall, and some instances OF
losses as high as $1.5o per ton were
found by the commission.
"But, giving all due weight to these
considerations, 1t is obvious that the
jobbers, with few exceptions, made un-
reasonable profits out Of necessities and
fears of the dealers and the public.
"The jobber does not unload or store
coal nor deliver to the dealers wagons
from storage pocket, as wholesaler
or dock company does. He performs no
physical service. In q market like the
recent one he is primarily specula-
tor"
Dealers Profits Excessive.
The commission also revealed to the
president that dealers profits have
been excessive, ranging in many cities
during the last few months from $1.25
to $1.35 per ton.
Attic nothing in the order affects the
retail prices directly, the government
expects that dealers must reduce their.
prices to the consumer In accordance
with the reductions that will come to
them by the fixing of the basic price
at the mine and the limitation placed
on the jobbers.
II the retail prices do not come down,
it is authoritatively declared, the presi-
dent will resort to measures that will
force them down.
Margins charged by retail dealers,
the commission discovered, have been
ranging in many instances from s2.7F
to $3.50 a ton, and these margins 1t has
branded as "exorbitant and wholly I'M
justified"