The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-09-04
BUTTER PROFIT
LIMITED TO 5
and s CENTS BY
FOOD OFFICIALS
Regulations For All Glasses
Of Dealers Are An
nounced Today

Stores conducted on cash and
! carry basis may not make a profit
of more than cents q pound on
butter, and stores extending credit
| and making delivery cents, frac-
| tons TO be in favor Of the dealer, &C
cording to an order of the United
| States Food administration an
nounced today, and received by w.
A. Donnelly, secretary Of the North
Dakota Retail Merchants associa-
| ton.
The order, which also includes
regulations for manufacturers, brok-
! er and commission merchants, limits
the profit on butter held in storage
to 2 cents a pound. Revocation OF
license is penalty for violation Of the
| order, which follows in full:
The attention of all retail dealers
in butter is called to Rule l of the
above regulations, which reads as
| follows: ~.
Butter to be sold at reasonable
advance over cost The licensee
dealing in butter shall sell such but
ter without regard to the market
or replacement value at the time Of
the sale at not more than reason
able advance over cost to him Of the
particular butter sold.
Provided, that any dealer may av-
erage the cost of all cold storage
butter of the same grade placed by
him in a cold storage warehouse in
any calendar month. and may sell
such butter at not more than rea-
sonable advance over such average
cost. When a dealer averages the
cost of any butter stored in a cal
endar month, he must average the
cost of all butter stored in that
month.
Cost for the purpose Of this Rule
shall include:
1. Purchase price.
2. transportation charges, If any.
3. Storage charges actually In
Cured on cold storage butter.
4. Insurance charges actually In
Cured on cold storage butter.
5. Interest on money invested at
the current rate, while butter is in
cold storage.
6. Actual cost Of printing If the
butter Is put in print form from tubs
or cubes.
Cost shall not include any allow
ances for shrinkage in weight, COM
missions or other expense than those
herein listed"
Under the above rule the Retail
Section of the Distribution Of Per-
ishables Of the United States Food
Administration has investigated the
cost of handling butter at retail and
has determined that any advance in
excess OF to cents per pound
over cost las defined in Rule j. is
unreasonable, and will be considered
evidence of violation of Rule l. The
cents per pound represents the
maximum margin for stores conduct
ed on the cash and carry, or no
service plan, while 6 cents per
yo,,1d io +La ms vip1,1rT1 MARGIN for
the extra service stores extending
credit and delivery. Dealers whose
delivered store door cost figures in
fractions may have the benefit Of
such fractional cost.
For example, butter costing at store
door 461k per pound would carry q
maximum of 5A per pound for the
cash and carry and no service stores
and &c per pound for the extra SER
vice or credit and delivery stores.
In determining margins at SC and
&c a pound on butter with the frac-
tional costs in dealers favor, the
United States food administration
has given due consideration to the
rising costs of operation which must
be met by the dealer. This maxi
mum margin no doubt will exceed
in some instances the normal pre-
war margin. 81. -tr..t
In addition to the above, margins
the retailer who carries butter in
cold storage more than two full call
endar months may add not more
than lie per pound and an addition
al lac a pound for each calender
month thereafter during which he
carries the butter in cold storage
The total amount for carrying but
ter in cold storage so added. how
ever, shall not exceed &c per pound.
The Food Administration will CON
slider any sale of butter by retail
dealer at q greater margin than here
in outlined as evidence subjecting
the dealer to a revocation of his IL
cense, or such other penalty as the
law provides. - ...... d.