The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-04
Cabinet Expected to Report
To-day on Plans to Check
Profiteering.
BIG STICK TO RETURN \
President Likely to Wage
Vigorous Fight to Check
Living Cost.
MAY REVIVE FOOD BOARD
Representative Kelley Sug-
gests Sale by Post Office Of
All Foods in Warehouses.
MAY REVIVE FOOD BOARD
Special ps.patcA TO TIE suS.

WASHINGTON, Aug. o.-lHc opcSAui
subcommittee of the Cabinet confer
ence on the high cost OF living prob
ably will make preliminary report
to the President tomorrow, with ten
tative recommendations for a wheat
subsidy and the reduction of bread
prices to the consumers of the coun-
try.
At the same time it is understood
definite suggestions for legislation
and for administrative action to check
profiteerlng, bring out boarded food
supplies and to stop speculation In
foods will be made.
There are many members Of Con-
gress willing to support any plan Of
fered. Representative Kelley (Pa.) Is
planning q resolution, putting 1t up to
Congress to authorize the seizure Of
all non-perishable food in storage and
Its sale to the people on the same plan
that surplus army food will be dis
tributed beginning August 1S.
New Legialation Probable.
While there is little prospect that
the Administration will recommend
such a radical step. definite measures
to restore Government food control as
a means OF bringing down prices are
likely. The food control act is still
alive and can be revived, with its
penalties against speculation and
boarding. just what additional legis-
lhtion will be necessary has not been
determined. Attorney-G General Palmer
and other law officers Of the Govern
mept believe there is plenty of law on
the statute books now IL it can be ap-
piled to meet the situation and many
Government law clerks are on the job.
1t Is learned that one of the meas
ures given the most serious considera-
tion is for Government licensing OF
all dealers in foodstuffs. Under Il
well organized licensing system, 1t is
said, the Government can control
profits and margins and put the profit
eers out of business by the simple ex-
pedient Of revoking their Federal IL
cense to trade in foodstuffs, thus
compelling them to shut up shop
Resale Prices Suggested.
Chairman Colver and other mem
bers of the Federal Trade Commission
are In favor of legislation for the
stamping of the resale price on all
commodities that enter into the cost
of living to prevent profiteering by
dealers. Officials of the commission
who have given serious consideration
to the cost of living in all of the In
vestigations on foodstuffs and other
commodities are convinced that much
price boosting is due to the retailers
of the country and good deal to the
jobbers, who consistently have ridden
rising market and pushed prices
with consistent talk that they were
going higher. The stamping of resale
prices on commodities would 20 a
long way to check the practice. II
was stated by one official to-day that
retailers had taken advantage of the
situation to increase their margins
enormously.
Before the war, he said. the average
margin OF the grocer and provision
mar Of the country was &c per cent.
Prices doubled, which, in effect. Just
doubled the retailers margin. For in
stance, when a bushel Of potatoes was
sold by the retailer for 80 cents he had
10 cent margin. When the same
bushel sold for a dollar he had 20
cent margin on the bushel. or Just
twice as much.
Gross Profits Greatly Increased.
Not content with this. however, IL is
asserted these dealers in many sections
OF the country have greatly widened
their margin on a percentage basis.
many OF them increasing gross profits
something like 400 per cent.
This official explained that It might
be said in behalf OF these men that
their costs rose but that they did not
rise at any greater rate per cent. than
the cost OF living. 80 that widening
Of margins was not necessary except
to increase net profit.
When President Wilson makes his
promised recommendations to Con-
gress on the subject Of the cost Of
living, II is expected that he win make
a forceful appeal TO the public to Co
operate and support the Government
| in its efforts. II has been reported
that the President is prepared for the
first time in his life to use Roose-
veltian methods and to go after busi-
ness and financial interests with a
club.
There is little doubt that the meat