The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-03-13
PLAN TO SECURE
PRICE REDUCTION
AROUSES INTEREST
Continued from First Page.)

tives. of every industry willing to come
TO Washington and endeaVor to reach
agreement on what Is a fair price.
Costs of production furnished by the
federal trade commission and other
sources of Investigation open to the
government, will be at the disposal OF
the hoard so It Is expected that the In
lerests Of the consumer will be fully
protected.
II Is not promised that a series of In
formal agreements between Industry
and the government will at once cause
prices to make Il substantial drop. nor
II Is certain that in some cases there
viii be much variation from present
prices, but It Is hoped that the govern
ment, by conference with industry, will
be able to put its stamp of approval on
costs OF production and prices asked,
SO that the public may become assured
OF reasonablcness Of the prices and buy.
Ing he stimulated.
This means to be sure that merely to
support a high level Of costs in a few
establishments which nre inefficient the
government and industry In question,
VIII not ignore the demand of the con-
sumner for an elimination, of such inef-
tlclenCy. To those who argue that this
means employment for the men thrown
out IN efficient plants, the answer is
made that the present era Of hesitation
on the part of buyers who expect a
large drop In prices will only mean, II
continued, the closing down of the
efficient plants and the consequent
dumping of even more men into the
arms of the Bolsheviki agitators.
The small number OF unemployed from
the inefficient plants, 1t is also argued,
would he absorbed by those with "A
lower cost OF production where labor
would be needed to fill new orders due
to stimulated buying.
Prosecutions.
Another vital object which has been
made to the plan Is the possibility that
any agreement on the part Of a group
OF representatives of a certain indus
uy TO fix prices would be a violation
OF the sherman antitrust law. TO this
the answer Is made, however, that the
solicitor Of the department OF COM
merce, as the representatives Of the
government, would he present at all
meetings which would constitute an as
sufallce that agreements entered into
would not subject parties to prosecu-
ton, for there would be agreements not
10 restrain trade or raise prices, but to
stimulate trading and reduce prices.
As a further proof OF the validity Of
the, prices fixed, the government itself
VIII buy goods for Its own needs at
figures agreed upon generally.
Ihus the navy department and the
war department, railroad %administra-
ton, any other branch of the gov
eminent which buys steel or lumber or
any other commodity, will. as an evil
denCe of the good faith Of the govern
meht, make Its purchases at whatever
price levels are fixed between tha in
d%ustriRl board and industry,
Take an actual case for example,
suppose a manufactured commodity Is
now selling at 81, which is so per cent
more than a ear or two ago. The
public expects the article to drop to so
cents, and therefore doesn't buy It, The
business men face the prospect OF losing
the consumer gets over his hesitation.
Meanwhile rent, salaries and fixed
charges must be paid,
some business men are In n position
to take a loss this way, as the income
during the war was abnormal. Others
can do II, They offer their article at
a lower price, say rs cents, and still
there are not enough buyers, They
even may feel II necessary, after a
longer period Of waiting, to go to the
very cost Of production and make no
profit al all, to get rid Of existing
stocks, but the effect Of such stagna-
ton, and especially when extended
throughout the whole business world,
would cause unrest and much loss to
the people,
so II is suggested that in many
business OBSERVATION-DISCLOSURES, Of
course, will differ as to each industry
the seller shall agree to reduce his price
to q point which the industrial board
and the industry shall consider fair.
This VIII, in some cases, mean taking
a big loss at the outset, but supposing
the government told business men that
such a reduction with all that il in
wolves would be accepted by the
treasury department as a legitimate
business deduction Of income tax re.
turns.
Then, II such a plan is finally found
necessary and agreeable to all con-
cerned, the expected loss TO the seller
would be measurably reduced. on the
other hand, advantages Of q lower price
would stimulate purchases Of manu-
featured articles which in turn would
create a demand for more raw products,
Everything Is Impossible tin II is tried
but the number OF objections raised
to the plan as reflected in letters and
personal inquiries seem to be less than
the arguments being advanced in favor
Of Il. There is therefore at the offices
Of the industrial board. a spirit OF op-
timism that what was done between
government and industry by %voluntar,
cooperation throughout the war, car
be repeated In the new era OF recon.
struction.
Copyright, 1919, by the New York
Evening Post, InoQ