The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-12-17
WAR DEPARTMENT
DEFENDS POLICY
OF SALE Of GOODS

were disposed OF DECLARES
Agent So aS+O Make Burden
of Taxpayer Light.
The war department authorizes pub
LEGATION Of the following statement from
the office OF the director Of sales
In answer TO criticism dlrecieu
against the war department by Tue
mercantile trade the director OF sates
takes this opportunity to outline briety
the policy which has controlled the
war depaTtments efforts to dispose OF
its surplus stocks which are OF CHAR
acter and condition that will permit oil
direct sales to the ultimate consumer
to state the reason for establishing ihe
army quartermasttr retail stores WnlGu
are now being operated, and 10 explain
the method BY which the prices GXed
on commodities offered for sales through
those retail stores were arrived at.
Having purchased in accordance with
a program which called for ~ fuH SIN
months future supply OF al common
ties and materials required Aof INC
equipment Of its armies engaged III tIlS
world war. the war department found
itself. at tho cessation of hostilues'
with large surplus stocks OF all the sup.
plies issued TO field armies. Many q
these supplies, particularly those cou-
stituting subsistence and equipage, are
consumed in the American househoiu'
Relief of Taxpayers.
Since the American people had;
through taxation and loans, furnished
the funds with which the large surplus
stock held by the war department was
acquired, the secretary OF war; IN par
tipular. and the legislative and eNeCu-
tive branches Of the government, IN
general. desired that the surplus, be
disposed of by that method best caicu-
lated to relieve the taxpayers or their
unusual financial burdens. AS step
toward this end the secretary OF war.
acuuiescing in the expressed Mlsh OF
the congress, determined to offer all
surplus stocks, the character and con-
dition of which would permit OF sueh
distribution, for sale directly to the
ultimate consumer. This decision was
made a part Of tho sales policy orig
inally formulated by the war depart
ment
American people in REDUCING the cost
OF living through acquisition of these
/ surplus stocks as Cheaply as possible.
Direct distribution eliminating as II
| does the expense incident to tho opera
ton of the mercantile trade and tho
profits oxacted by the factors through
/
reaching the consumer would neces-
sarily enable the war department to
sell more cheaply than the retail mer-
| chant.
Not in Business.
When It inaugurated its sales cam.
paign, however, the war department
was not equipped to conduct D. retail
mercantile business. It first endeavor-
| ed 10 accomplish distribution to the
ultimate consumer by offering its
Jocks of subsistence for sale through
| municipalities and municipal selling
agencies and later resorted to the par
| GELS post service as Il medium for the
distribution of its stocks of foodstutfs'
Since neither of these methods of dis
tiibution had proven entirely satlsfac
| tory, tho war department on sept. 20
| having IN tho meantime erected tho
| organization necessary to operate snch
a business opened % retail stores. The
uuartermaster-g general of tho army d.
| vided the United States into retail dis
| tricts and located the stores in those
| centers which would permit OF the most
economical distribution possible.
| In these retain stores the war depart l.
ment has placed a part, ut least, OF
4 the surplus supply Of every COMMODITY
which might be regarded as household
in character Every commodity offered
for sale in the retail stores Is offered
at q fixed price.
In addition to striving for as vide a
distribution Of its surplus stocks as
lDossible. the war department sought to
move its supplies promptly to elImln-
ate storage expense and possible de-
teroration. This latter object had a
bearing on the prices fixed on com
modities offered for sale TO ultimate
consumers. In carrying out this dual
purpose the war department has not
| i in -
irving at prices. Several factors had
TO he considered In the price equation
presented for solution,
why Stock Was Bought,
The stocks had been purchased by
the war department for the sole pur-
pose Of cquipping the armies; no
thought was given at the time of their
acquisition to the sale of possible
surplus The stocks were prepared IN
the form which would permit Of the
most convenient distribution TO the
fighting forces Consequently many oil
the commodities with which the army
quartermaster retail stores are stocked
are In noncommercial sizes; others lacf
labels and trade marks,
| As stated above, the first attempt
made by the wRr department to react
the ultimate consumer was the offering
Of canned and cured meats and canned
| NtBtlduitS lpI Rhlt lllbhEN llNliClbhll'
ties and municipal selling agencies
These foodstuffs were offered at fiXet
prices. The prices on canned an(
cured meats Nero determined by de
Quoting 20 per fcent from the cost o
those meats 10 The government, Thu
prices fixed on the canned vegetables
were the average cost prices OF the veg
etablcs to the government, The aver
age cost price Of the vegetables wa
approximately II per cent below thu
then prevailing retail price on simila
canned goods.
Later complying with congressional
recommendations the war department
ATTEMPTED to sell such Of its subsist
cnce stocks MS would permit of tina
method OF distribution through tn
parcels post service The prices whicl
had been Established for the sale q
both meats and vegetables to the mu
inequalities were taken as basic price
for the snle through the parcels pos
service, But, sinee purchasers throug
the paRrels post service were require
10 pay the postal Charge on good
which they ordered the war depart
. ment made an arbitrary discount {
one cent per pound from the tnunlcipa
price scale This discount. il was est
| mated, would cover the parcels pos
a delivery chdfge ana eqoalae the prize
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