The Washington times., 1919-08-23
Profits Not StifIed
By y. S. Food Control,
Dealer Tells PrOberS

Government regulation Of prices, as
practiced by the Food Administration
during the war, while operating to
the advantage Of the consumer, does
not stifle iegimate profits. w. E.
Hopkins. representing N. w. Burchell,
Washington retail grocer, testified be-
fore the Senate District Subcommittee
yesterday afternoon.
Mr.. Hopkins declared II was possi-
BILE for grocers TO operate success
fully under such regulation as last
year and still make a reasonable
profit Questioned further by the
committee, Mr.. Hopkins said that
regulation was to the advantage Of
the consumer and had a tendency to
keep down excessive profits.
He explained that what the grocer
lost on the ordinary line of staple
food products he managed to get back
in large part through the sales Of
luxuries. This served to lower the
cost of living for the small salaried
producer and placed higher profits
upon the well-to-do, who could af.
ford to pay for luxuries.
Mr., BurchelPs gross sales in 1917
were $2OS.6Ss and his net profits were
S12.134. In 1918 the gross sales wert
S251.635 and his net profits were
$685.
Profits Are Compared.
The committee devoted its entire
hearing yesterday to the retail groc-
cry business, comparison of profits
for 1918 when regulation was effec
tive with 1917 before the law became
enforced, showing that supervision o.
profits works to the advantage OF the
consumer.
Practically all the retailers assert.
ed that the wholesalers controlled
the price OF food to the consumer
especially the smaller Erocers, who
testified that they have to pay what
is demanded of them. All said that
most articles Of food have been going
up gradually in price during the last
three months, for which the whole
salers are responsible
The committee asked George G.
Cornwell II his profits or IS to 80 per
cent on canned E0o-s were not ex-
cessive. He explaine4 that the Food
Administration had allowed 80 per
cent profit on cenncd goods. and that
much Of them being spoiled he neces-
sarily suffered losses.
Mr.. CornweH testified that retail
crs made as much as so per cent
proht on some kinds of perisha bic
foods because they must be sold i'm
mediately to prevent spelling.
Submits a List.
For the benefit Of the committees
record Of prices he submitted a list
Of foodstuffs purchased by him in
1914 and 1918 at wholesale prices and
the prices at which the same articles
are retailing today. Some OF the
increases are as much as 800 per
cent. The list follows:
Sugar, 1914. $50 cents n pound
wholesale, 1919, 9.21 cents . pound
wholesale, retailing to"ay at II
cents.
Flour, 1914 wholesale price $500.
1919. wholesale price I1265. retail
price today $3.50.
Cornmeal, 1914. wholesale price 2
cents a pound. 1919. wholesale price
as cents, retail price today cents.
Rolled oats, 1914, wholesale price
price 5k cents, retail price today s
cents
Butter. 1914. wholesale price as
cents a pound. 1919. wholesale price
so cents, retail price today 20 cents.
Rice, 1914. wholesale prize SIS
cents a pound. 1919 wholesale price
IA cents, retail price today Is cents.
Lard. 1914. wholesale price 1926
cents a pound. 1919, wholesale price
3I75, retail price today 4s cents.
Bacon, 1914 wholesale price, "a
cents a pound; 1919 wholesale price,
As cents; retail price today. 5s cents.
Ham, 1914 wholesale price. 81 cents
a pound; 1919 wholesale price, 43
cents; retail price today, 50 cents.
Eggs, 1914 wholesale price, 50 cents
a dozen; 1919 wholesale price, 90 and
20 cents; retail price today, so cents.
Cheese, 1914 wholesale price. II
cents a pound; 1919 wholesale price,
33 cents: retail price today, As cents