Republican farmer., 1919-12-19
ON
 SALE 0F ARnly
 STOCK T0PUBl.IC
Director of Sales Tells How Plan Was Formed and
 Prices Fixed.

~AAN Tn answer 10 criticism directed against the War Department by tha mercantile trade, the Director of Sales takes 1his opportunity to out line briefly the policy which has con trolled the War Departments efforts to dispose of it's surplus stocks which are of a character and condition that will permit the direct sales to the ultimate consumer: to state the req son for establishing the Army Guar ferrnaster retail stores which are now being operated, and to explain the method by which the prices fixed on commodities offered for sale through those retail stores were arrived at.
 Having purchased in accordance with a program which called for q full six months future supply of all commodities and materials required for the equipment of it's armies en- gagged in the World War, the War DeuarrlrenL found itself, at the ces- Sation of hostilitIes. with large sur 1,Ius stncks of all the supplies issued to field armies. Many of these sup plies. particularly those constitut- ine subsistence and equipage, are consumed in the American house hold.
 since the American people had. tlrOuSN LlOtl anu LE1ELlSr LII I1LSIlt-tl the funds with which the large sur plus stock held by the War Depart lllant was acquired, the Secretary of War, in particular. and the legislative and executive branches of the Gov rrnmert. in general desired that the surplus be disposed of by that method best calculated to relieve the taxpayers ot their unIs1a. GnaD ial burdens. As a step toward this end,
 
 the expressed wish of the Congress. determined to offer all surplus stocks. the character and condition Of which would permit of such distribution, for sale directly to the ultimate con s-1nler. This decision was made a part of the sales policy originally formulated by the War Department.
 This policy was designed to assist the American people in reducing the cost of living through acquisition of these surplus stocks as CheapIy as possible. Direct distribution, elim- = mating as 1t does the expense incl dent to the operation of the mer- cantile trade and the profits xacted by the factors through whose hands merchandise passes before reaching the consumer. would necessarily en- able the War Department to sell more cheaply than the retail mer- chant
 When it inaugurated its sales cam pafgn however, the War Depart leaL was not equipped to conduct q retail ne anri1e ness iI f-.- an- deavored to accomplish distribution to the ultimate consumer by OfferinS it's stocks Of subsistence for sale through muaicina lities and municipal selling agencies, and later reported to the Parcels Post service as a medium for the distribution of it's stocks Of foodstuffs- Since neither Of these methods of distribution had proven entirely satisfactory. l--e War De- par;uent on September 25, having in the meantime effected Ihe organiza- tion n, eessary Ia operate such 8 buaI- ness, opened 25 retail stores The Quartermaster General Of the Army divided the United States into retail districts anu Ioca5eG the stores in those ccnters which would permit of the most economical distribution pos sible.
 In these retail stores the War De- partnent has placed 2 part. at least of it's surplus supply of every com modity which might be regarded as household in character. Every com modity offered for sale in the retail stores is offered at q fixed price.
 In addition to striving for as wide 9. dis.ribu on of its surplus stocks as possible. the War Department sought to move it's supplies promptly to eliminate storase expense and pos sible deterioration. This latter object had a bearing on the prices fixed on commodities offered for sale to ulti- mate consumers. In carrying out this dual purpose the War Department has not pursued to strictly uniform policy in arriving at prices. Several factors had 10 be considered in the pric- equation presented for solu- ton.
 The stocks had been purchased b2 the War Department for the sole pur- pose of equipping the armies; nc thought was given at the time ot their acquisition to the sale of a pos sibIe surplus. The stocks were pre- pared in the form which would per init of the most convenient distri button to the fgh ting forces. Con sequently many of the commoditie! with which the Army Quartermastel retai! stores are stocked are in non commercial sizes; others lack label ->~ and trade marks.
 As stated above, the first attemp made by, the War Department t. reach the Ultimate Consumer was tin offering of tcanRad and cured meat and canned vegetables for sal through municipalities and rnunicipa selling agencies. These foodstuff were offered al fixed prices Tn prices on canned and cured meat were determined by deduCting 20 De cent. from the cost of those meats t the Government. The prices fixed O, the canned vegetables were the aver age cost prices Of the vegetables t the Government. The average cos price of the vegetables was approxi rnat@ly 27 per cent below the the prevailing retail price On similar can ned Hoods.
 Later, complying with congression al recommendations, the War Depart ment attempted to sell such of i; subsistence stocks as would pernI of that method of distributio through the Parcels Post Service. Tn prices which had been established fo the sale, of both meats and vegetable to the municipalities were taken a basic prices for the sale through tn Parcels Post service But, since pur chasers through the Parcels Post ser vice were required to pay the posts charges on goods which they ordered the War IOeDart tDler1+ p1a7a so arL4