Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-08-17
BIG WAR PROFITS
in PHILA. DENIED
Crocers' Secretary and
Banker Answer Treas
ury Department
CHARGE CALLED UNFAIR
Food Dealers Make Less Than
Ever, Says Schoch-Nich-
olson Defends Bankers
CHARGE CALLED UNFAIR

Keno Schoch. secretary of the Retail
Grocers Association of PHILADELPHIA
which has a membership of nearly 1900,
today asserted that 1t is unfair for the
treasury Department to draw a blanket
Indictment against American business,
The Treasury Departments report"
said Schoch, makes the assertion that
FOOD dealers are making as high as 500
per cent. To say that that charge ap-
plies to Philadelphia would be absurd
1t must be borne in mind that the Fed
eral food administrators in this city
are very active and for months have
been checking up on the profits of food
dealers
Now the grocers are TN against II,
for the cost of labor in the last five years
has more than doubled while the cost of
foodstuffs has Increased 81 per cent. 1t
is impossible for the grocers to increase
retail prices to an extent that will en-
able them to make the profits that ac-
crued to them in normal times.
Agents Limit PROFIT
Agents of the food commission are
on the job continually and limiting
profits. In the central section of the
city, where operating expenses are very
high. the food administration permits the
grocers to make a gross profit that in
some instances reaches 25 per cent. Eut
'ho average CdSn VINO Is QOlUE
business at a fairly nominal operating
expense. Is held down to Is, 8 and 20
per cent
AS 1t costs the average grocer from
Is to Is per cent to do business. one can
see that, after operating expenses have
been deducted from the gross profits al
lowed by the food administration that
there is but little left. In a word. the
corner grocer is up against n tough
proposition and longs for the wars end
and return to normal prices"
Denial for Banks
"The Treasury Department does not
90 into detail concerning its report. on
war profteering, but l am certain that
its charge that banks are making as
high as 100 per cent does not apply to
Philadelphia" said William r. Nichol-
son; president of the Land Title and
Trust Company, after he had read the
Treasury Departments report which
charges that $1,000 corporations are
prof1teering
Banks in Philadelphia" added Mr..
Nicholson, ARE in healthy condition,
but their profits are not and have not
been abnormal If what the Treasury
Department says in regard to excessive
bank profits is true. it probably refers to
New York institutions. The kind of
banking that permits such huge profits
is not done by the local bankers.
Our profits have been normal, but
not excessive, and l don't know of a
banking institution in the city that can
be placed in the Treasury Department 8
profteerlng class"
Garment Manu- ufacturers 1rats
The charge made by the Treasury De-
partment that garment manufacturers
are reapng war profits that In many
instances reach 700 per cent reused the
ire Of Philadelphia manufacturers. They
regard the statement as unfair. and as
sert that the publication of the charge
in such an indefinite form places the
entire industry in wrong light with the
public.
David Kirschbaum. one of the largest
manufacturers of clothing in the coun.
try, declined to discuss the report to.
day. 1T Is a serious charge" said the
manufacturer; "in fact so serious that
1 shall not talk for publication until
have had better opportunity to study
the report"
Doctor King Puzzled
DR.. Clyde l.. King, of the Federal food
administration, who has supervision over
dairies in eastern Pennsylvania, failed
to understand how it was possible for
the dairymen to garner huge profits.
I'm 1917" said Doctor King, "the con.
densers of milk made big profits, but In
my opinion they were the only men con-
nected with the industry who shared
abnormal profits. Investigation will
prove that the country dairyman is not
making Il great deal of money and 1t Is
certain that the Philadelphia milk
distributors are not proiitcerinG.