Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-05-30
IOWA RETAIL MERCHANTS ASSo.
TIoN ASKS CHANGES IN
TRADE CONDITIONS.
ALLEGES UNFAIRNESS
BY JosBING HOUSES
Chain Stores Which Underseil Small
Retailer Also Subject Of Complaint
Manufactured Food Products Sold at
Figures Which Indicate Profiteering
-Other State News.

Dubuque, May 3o.-The Iowa State
Retail Merchants Association. through
it's secretary, John A. Cunningham OF
this city, has appealed to congress to
investigate conditions said to exist in
the food productions market which dis
criminate against consumers removed
from the centers Of population. Chain
stores, which, according to his charges,
are able to undersell the small retail
dealers are said to work against the IN
terests Of the consumers and cause
hardships among the retailers.
The Quaker Oats Company is cited
in the statement to congress, and
recent financial statement Of the cor
poration is featured to show the I'M
mense profits being made.
Addressed to Iowa Members.
The statement of the secretary is
addressed to congress and specifically
to the Iowa members of both houses.
1t follows In part:
II submit herewith for your con-
sideration the inclosed statement, with
the assurance that it Is not based upon
prejudice or desire for revenge, which
may be inferred against the particular
concerns mentioned. They are used
merely as an illustration or example OF
conditions which I believe to exist. l
hope that it may result in an investiga-
ton by congress OF the conditions COM
planned about
AT this time with our country at
war, when the government is supposed
to exercise a controlling influence over
business, permit me to invite your at
tention to the following:
Publish Financial Statement.
THE Quaker Oats Company, a cor
poration doing national business,
capitalized at $1,000 .o00, several years
pany, which consolidation was investi-
gated by our government, published
their financial statement in the Chi
cago Tribune, February 81. 1913. show
ing that they realized a net profit OF
1855 per cent: copy Of said statement
as published follows:
1.-The Quaker Oats Company before
deducting a reserve Of S2.063.775. tor
federal taxes, earned profits OF $685.
527 in the year ended Dec. 81. 1917.
compared with s2.se1,sla In 1916. its
best previous year. This enormous
gain In earnings was shown In the
annual report Of the corporation issued
today. After deducting war taxes, the
profits for the year amounted TO $s.211.-
1852. The balance available for COM
mon stock amounted to s4,34s,s77. equal
to 5265 per cent on the sS.2o0.00o issue
outstanding, comparing with 3s.1s per
cent earned on like amount Of COM
mon stock in 1915
Manufacture Substitutes.
They manufacture food products.
such as pulled rice, corn flakes and
rolled oats, the latter Is substitute to
be sold with wheat flour used for con-
sumption by the average family, which
in pancake form the retailer pays, for
IS packages (weiglins pound 4 ounces
each) s1.s2 and generally sells same to
consumer at 12 cents a package. Bulk
oats now cost the retailer Cup to re-
the large cities. chain stores are able
to sell and do sell at or below the cost
to retailers in rural communities.
rs 1t not possible during the war to
prevent discrimination in price to large
buyers in centers Of population, by
making up the difference, thru exact!ng
these big profits from the consumers
in rural communities by increasing the
price Of this product to the rural dis
tributor?
Asks Cause Of Condition.
What applies to Quaker Oats also
applies to numerous national manu-
featured food products.
why this condition?
Would it justify investigation?
1.-THE forepart Of February this year,
Quaker Oats Company (who control
the bulk Of that business In this coun-
try) refused to take orders for bulk
oats, thereby forcing the dealers to bug
and sell their package goods.
TT was not until after Feb. Is, 1918.
when by letter I brought this fact to
the attention Of the food department
that the dealers of Dubuque, Iowa,
| were able for d period Of several weeks
to get bulk oats.
During all this time oats were 1T
their highest price. with farmers bins
filled which they were then unable to
move. and for which there was no mar
ket until the Quaker Oats Company
| unloaded a large stock Of package
goods at long price. Since then oats
have dropped and the farmer may now
sell at the short price.
Compares Price With Chain.
LAS an example Of what consumers
are now getting for their money. from
| biscuit manufacturers, 80 into a retail
grocery store in Washington, D. c.,
ask for a package of Uneeda Biscuits,
for which you will pay 10 cents. They
cost the retailer 80 cents a dozen
packages, and you will get four ounces
Of crackers, in that package.
Most of the other manufacturers OF
crackers follow the National Biscuit
Company, yet the chain stores in large
centers of population sell the 'Uneeda
Biscuit Package at 8 tc 8 cents.
why should the consumers Of lowe
and other states outside the few who
do benefit in large commercial centers,
as result OF cut prices be forced to
pay so to 100 per cent more for these
same articles?
Does it not occur to you that the
few under this system are benefiting at
the expense Of many OF our citizens?
| iowa State Retail Merchants
| Association,
@By John r. Cunningham,
Secretary"
|