Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-07-12
HIGH FOOD PRICES
UP TO M|DDLEMAN
Counsel Hepburn, Of Food Ad-
ministration Says Only So
luton Lies With People
SELF-RATI0NING IS URGED

Charles 7. Hepburn. chief counsel for
the United States food administration in
Pennsylvania during its recent opera
tions. talked in general way today
on the present Cxorbitant prices and the
possible methods Of forcing them TO a
lower level.
70. 1.-THE United States food administra-
tion was solely responsible for main
taining food prices at something like
normal figure during the period Of the
war" said Mr.. Hepburn. ut fixed
profits rather than prices, and estab-
lished rules which prevented protite'r
ing. These in turn prevented eXorbitant
charges for food commodities.
Existing conditions are Just what
was anticipated by members Of the
administration once the war ended and
the ban was lifted on food control. We
expected prices to jump.
at is q mistake to charge the small
dealer and retail grocer with protitcer-
ing. 7 say this as n result Of my eN-
perienCe as n member Of the food admin
istration. My observation has been that
any increase in prices. except in the
case of certain trade combinations and
closely controlled commodities. can be
traced to the middleman instead Of the
retailer.
1T would be interesting to follow the
gradual rise in the scale Of prices on
an article of food from the moment it
leaves the hands Of the producer until
1t reaches its ultimate dpstination-the
consumer.
Distribution System Defective
There are anywhere from two to
half a dozen persons who handle the
article, and each one raises the price
so that he may reap his margin of profit.
The difficulty is largely one of distribu-
ton. The system is defective. and until,
let us say, for example, farm products
can be delivered directly from producer
to consumer, the latter is at the mercy
OF INSCRIPTIONS wholesalers and com
mission merchants known ms middle
men.
They arc the real proftccrs as a
rule. Until this condition is romediod
can see no limit to the nrices thot
may be asked for any article of food y
what remedy can you suggest that
Will change the situation and reduce
prices TO something like reasonable
Hgure' Mr.. Hepburn was asked.
lou are asking a question that Is
on everybody lips; one that is exceed
ingly difficult to answer. We furnished
measure of relief during the war bv
tne establishment of curb markets in
various parts of PHILADELPHIA. Tbev
were very popular, but we had no
power or authority to continue them
after the armistice was declared
Farmers Sold Direct
AT these markets, as YOU will re
call, farmers sold their products oIon,
the curb at prices very much below
those demanded, at corner groceries Tba
people bought directly from the mo-
ducer at these markets. The orncors
were compelled to ask high prices be-
cause they were buying through COM
mission men who paid little md ,staa
much Tor the produce they handled T
regard the curb market as a martial 60
. luton Of this problem -
is there no law that can he inyol,oJ
10 limit the excessive profits of these
middlemen?"
Under our national constitrt;o,
Congress in normal times has no no1ynr
to limit profits or fix prices. As 7 boyo
stated, the food administration dnrir1
the war period did not fix nrices 7,
controlled them, however. in Iarao
measure by fixing the margin of "a.
to be levied by the dealer
"One of our food laws forbodo
fro Ill
r food to another wholesaler Tbis nro
/. vented continuous Diling up of profits
AS l understand conditions now n
large dealer sells to q smaller vboIe-
saler at fine profit and this smaller
wholesaler resells to another middleman
collecting an additional profit, so that bv
the time the retail dealer is reached he
must charge an exOrbitant price if he
hopes to make anything at all and
keep his establishment going. II comes
back you will observe to the middlemap
Naturally food prices might be- ex-
pected to go somewhat higher than
heretofore, though not to the outrageous
figure demanded for certain articles.
Labor is costing more, overhead charges.
even in the case Of the farmer, are much
greater, but there is nothing in the
situation to warrant prices that are
being demanded for certain com
modities.
Can you suggest anything in the
way of legal enactments by the state or
by the city authorities that will relieve
the situationf'
ITO answer that question definitely
would require thought and careful re-
search. 1t cannot be answered off
hand. If you can discover any com
bination of men, or firms, banded to-
gether to increase or maintain high
prices on food commodity you have
ample redress in the criminal law.
Generally speaking, 1 should say
that outside the prosecution Of a COM
J binatiOn or trust to maintain high
prices you have little redress under
existing law. When a state or govern
ment undertakes to say at what price
man must sell the product of his
labor you are walking over quicksand.
Z There is another phase of this
question that cannot be onverlooked in
. any discussion of price fixing either by
! limitation of profits or directly. That
is the cost of maintaining a force ade-
quate for such a work.
''The United States food administra-
tion was an organization of volunteers.
Its members received no compensation.
! but even under the conditions tho