Bisbee daily review., 1919-04-08
LOWER FOOD PRICES
IN NEAR FUTURE ARE
PROMISED BY Peek
Industrial Board of Depart
ment of Commerce As
sures Early Cut


WASHINGTON. April There is
every reason to expect lower food
prices in the relatively near future"
So speaks George n. Peek, chairman
of the new industrial board of the de-
partment of commerce.
Peek describes the industrial board
az the doctor to American business. .
He believes the patient should be well
on the way TO recovery within go to
80 days
And after six months of convalesc-
ing, American business should be
healthier and more prosperous than
ever" he asserts.
Doctor" Peek is now diagnosing
the ailments OF the industries which
produce the basic necessities, such as
steel, coal, lumber. brick and building
materials. Already he and his assist
ants have brought about a reduction
of 10 to Is per cent in the prices Of
steel. When prices Of these confmodi-
ties have been brought down, then the
board viii go after food prices.
There's no government control
about it; it's purely voluntary ar
raugement.
Way System Works
Here's about the way it works-not
so informally perhaps, but along these
general lines.
Down in the wood-and-paper build
ing where the council of national de-
tense has given quarters to the indus
trial board, there's a committee room,
with a long, plain table and a few
plain chairs.
Into this room Chairman Peek calls
Judge Gray of the United States Steel
corporation, Charles NJ. Sehwab of
Bethlehem Steel, and other steel mag
mates. They all come quite willingly
Now, judge says Chairman Peek.
you know darn well steel prices are
too high. NoDodys buying any steel
because they can't afford it. Now it
seems to me it would pay you to cut
the price, even if you do lose little
by it, so that people would buy. What
do you sayg'
Sure" says Judge Gray, flicking
the ashes off his cigar. II unwilling.
I'll cut prices 10 per cent, if that suits
the rest of you"
That's all right" says Charlie
Schwab But 1 think some things
could be cut Is per cent"
That's too much, says some other
magnate. Il think u per cert would
be better"
So they agree on u per cent. Then
they take pad of paper and a pencil
and figure out just what they'll charge
for various commodities. This SEIZED
ule is put into shape, and they all sign
an agreement not to charge more than
it says they'll charge-and there you
arel
Business Bears Shock
One of the best things about this
new and novel method OF price-fixing
is that labor is perfectly protected.
The industrial board looks after that.
1t will permit no cut in prices that
will give the employers a chance to
cut wages. So long as the cost of Iiv-
ing remains high, wages must remain
high, the board holds, so that the liv-
ing standard shall not be lowered.
The theory underlying the whole ar
rangement is that big business, still
holding its profits made during the
var, is in far better position to stand
thSS first shock 81 REIMBURSEMENT than
is the american workingman
mo one dares buy until prices fall,
and even then everybody will wait to
see how far they fall" says Peek. In
dividual action in lowering selling
prices is therefore long drawn out and
unscientific. 1t renders the market I'M
stable and dangerous.
by sane and temperate action all
this can be avoided"