New-York tribune., 1919-08-21
More Complaints Against
Corner Grocer Than Any
Other Glass of Dealers,
He Tells House Probers
Fixing ng of Charges
By Wilson Opposed
Quick Action end Prison
Penalties for Cougers
Most Effective, He Says
Ne1c York Tribune
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corner grocery profiteering in the ne
cessities of life will be the next move
of the Federal government in it's fight
to lower the cost Of living. Attorney
General Palmer told the House Agri-
cultural Committee to-day
Mr.. Palmer therefore objected to
other amendments to the food control
act than those including wearing an
parel in the list of necessities and i'm =
posing $4,000 fine or two years i'm
prisonment for profteering.
Speed is desired above all things.
he told tho committee. To have the
President fix prices. as proposed by
the committee, would not only delay
the fight against profteers he de-
clared, but would require the revival
of the food administration, which
cost around Sl,oOO000 month during
the war, exclusive of the efforts con-
trlbuted by thousands of volunteers.
Small Dealers Blamed
Small dealers are to blame for pres
ent high prices probably moro than
the "big fellows" Mr.. Palmer declared
in asking elimination from the Federal
control act of the section exemptng
from regulation dealers in commodi-
ties with an annual business of less
than 100000 wear.
Farmers and farm organizations also
should be subject to regulntion he
said, if they charge exorbitant prices.
although he saw no objection TO farm
ers holding their products on their
farms until they could market them
He cited an example, however, Of g
farm corporation in California which
has had in storage 100000 sacks of
the 1913 bean crop.
The Agricultural Committee inform
ally agreed to Mr.. Palmer's requests,
with the exception that it insisted on
exemption for farmers and farm or
ganizations. Chairman Haugen stated
tonight that t. committee probably
would eliminate the 100000 exemption
for retailers, drop price fixing and rush
the bill to the House tomorrow if
possible.
"Retail Gougcr" Assailed
"The entire food control act VIII be
waste paper if the government can
not reach the retail gouger," the At
torney General told the committee
"The Department of Justice has had
more complaint against the retail gouG
ers than any other class. We have
found that thousands of corner stores
are taking advantage of the situation
to charge cxorbitant prices, and this
is what the people are protesting
about.
"The small dealer is the man they
IL
is against him as much as any other
dealer in comm oditics that they are
demanding action.
These dealers often control their
surrounding localities, and, while the
majority of retail merchants are fair,
there are many black sheep among
them, and we have found that in nearly
every town there is corner store in
forming people that prices must be
high and taking advantage of this to
extort large profits"
Depends on County Action
The Attorney General said he hoped
to reach "the little profitcers" through
the fair price committees that arc be-
ing established in every county Of the
country.
"Thesc committees will find what is
fair price in each community he
said, "and we intend to base our court
actions largely on their findings. Much
can be done by the publication of
prices, and if court proceedings are
brought against profiteers these fair
prices will be reflected among the jury
men. Thirty-six state food adminis-
traitors who served during the war with
the food administration already have
assured the department of their CO.
operation.
1--WE already have started actions
against the big packers, but it is OBJ
vious that it would not be fair to
prosecute only them and the large de-
partment stores with an annual bust
ness of more than 100000 and let the
little gougers go free.
Believes in Examples
81 believe that if the department
can make some conspicuous examples
Of the profiteers, if it is realized that
the government means business, the
present problem will be largely
solved"
Mr.. Palmer opposed the plans of
Chairman Haugen, for sweeping pro-
gramme Of executive price fixing.
Chairman Haugen suggested that the
plan of executive price fixing was to be
used only in lieu of any other plan to
fight the protiteers the Administration
might desire to use. The Attorney
General said this would provide q
loophole, as every protiteer would de-
mand that the Presidents prices be
announced before he should be prose
cuted.
81 don't see how we could prosecute
until the President had determined
these prices" the Attorney General
said "and the President, of course,
could not in a day fix these prices. He
would have to haYe complete investiga-
tions by an agency such as the food
administration, which it would require
three or four months to put on q work
ing basis. We prefer to leave it to a
court or jury to determine what prices
are fair in each locality, because they
do vary considerably, and this would
be determined in our prosecutions
against the protiteers.
Farm Restrictions Discussed
Members Of the committee ques-
toned Mr. Palmer as to whether he
believed restrictions on farm organiza
tons and farmers would not tend to
decrease production at time when it
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