The Leader, enterprise and press. (Fitzgerald, Ga.) 1915-1921, 1918-02-08
Observation-Disclosures
PROFIT

Atlanta, Va, rep. Z.-1 ne TuleS
promulgated by the President and
the United States Food Administra-
lion, effective November l, 1917, re-
quire that certain of the licensed
commodities shall be sold on the ba-
sis of cost. The most important reg
ulation upon this subject is Special
Rule No. l governing wholesalers,
retailers, and all other dealers in
those licensed commodities that are
expressly named" in the heading of
that rule. 1t reads
"The licensee shall sell the above
food commodities at not more than
a reasonable advance over the actual
purchase price of the particular goods
sold, without regard to the market
or replacement value at the time of
such sale"
The Special Rules governing whole
sale dealers in sugar and those per-
sons subject to license who deal in
sugar at retail; Special Rule 5 re-
garding dried beans and dried peas:
Special Rule as to rice millers:
Special Rule a as to licensees engag-
ed in the business of canning food
products (applicable to goods man
ufactured and on hand"); Special
Rule II respecting cotton seed, and
those kindred products named in the
heading of the Special Cotton Seed
Rules; and Special Rule II of the
Grain Rules with respect to those
products expressly named in the
said rule, all make the requirement
quoted above, that the licensee shall
sell at not more than a reasonable
advance over the purchase price.
The Food Administration has not
ordinarily announced in terms OF
figures any uniform margin of ad-
vance over delivered cost or purchase
price that the distributor shall be en-
titled to obtain on any of these COM
modities. The reason is that costs of
doing business differ widely, not only
within the same state, but within
the same city, according to local con-
dltlonS, and the nature of the SER
vice and character of business of the
particular licensee. 1t must there
fore be clearly understood that if
the Food Administration does at any
time announce in terms of figures
the margin that will be allowed dis
tributors, such figures are to be re-
garded as tentative guides for the
information of the trade, and more
particularly for the convenience OF
the Food Administrators in examin-
ing complaints, sworn monthly re-
ports of licensees, and evidence OBJ
| tanned through other sources at the
command Of the government.
The Food Administration has an
nounced and will insist under the
aforesaid reasonable profit rules
that:
THE distributor, whether whole
saler or retailer, or both, shall not sell
any commodity covered by the Rea-
sonable Profit Rule at a margin OF
advance above the delivered cost to
him of the particular goods sold that
will yield him any greater profit than
he customarily enjoyed on the same
commodity in the pre-war period on
an even market under freely compe-
titive conditions"
The government recognizes that
costs of doing business have advanc-
ed and permits the licensee to take
account of such necessary increases
in determining the lawful margin OF
advance.
The Food Administration neces-
sarily reserves the right to determine
each case on its own merits, and not
to permit profit that it finds excess
Sive, unjust or discriminatory, not
withstanding the pre-war practice of
the particular licensee
The rule reads particular goods
Sold" and, therefore, no transaction
showing an unreasonable advance
over delivered cost is, or can be, ex-
cused by other transactions showing
much lower margins.