The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-02
.PROFITEER'S WORST
FOE is ADVERTISING
Power Of Publicity Is Most
Effective Police Measure
in Some Lines.
RESULTS OF BIG SURVEY
Fair Price Committee Not to
Issue Lists for Clothing,
Shoes and Dry Goods.

Fair price lists for wearing apparel
are not to be issued by the clothing. shoe
and dry goods section Of the fair price
committee. This announcement was
made by william A. Orr, secretary. In a
report to Arthur Williams. Federal Food
Administrator.
A survey Of the situation made under
the direction Of Michael F'riedsam. chair
man. Mr.. Orr said. satisfied the fair
price committee of the section that the
continuous daily advertising in the
newspapers by the merchants engaged in
handling clothing. shoes and dry goods
| constitutes practically daily competi-
tive price list, the resulting publicity
| being the best guarantee that the con-
| sumner shall obtain fair prices"
Report on the Investigation.
In his report Mr.. Orr wrote:
an our investigation of the situation
| with regard TO shoes. we found that the
most careful appraisement of a fair re-
tail price for a good grade of service
! able, honestly made shoes, was $3.50.
| On the day the investigation leading up
to this appraisal was finished. which in
| vestigation included visits to Twenty-Five
small shoe stores throughout Manhattan,
| large retail establishment In the down.
town shopping district advertised a
| similar shoe at $500. II was found that
] the large store, either because of better
buying facilities, or because of the finan-
| cial ability to take loss in one line.
was quite generally able to undersell Oh
staple nevessities in these lines, price
which was entirely fair and reasonable
from the standpoint of the small neigh
borhood merchant. At the same time
the daily advertising of the large stores
forced the small retailer. except in iso-
lated cases, to keep at a reasonable per-
centage his margin of profit Generally,
| then, in this Investigation we have
| found:
| "a That competition Is so wide
spread and universal among retailers
in these lines that price agreements
| are impossible and in themselves
would defeat an attempt to lower
prices.
| (2) That retail prices in these CONF
| modities are regulated and restrained
through publicity given in daily bull
letins in the form of advertisements
from q number Of competing retailers
| CD That the public In measure
can itself control prices in these lines
by judicious and economical pur-
chases.
ca That labor costs OF all kinds af-
fecting merchandise at various stages
Of its production. manufacture and
distribution have greatly increased
| within the last few months. In addi-
| ton to the increase as compared to
the pre-war period.
| CD That raw materials, which en-
ter into the manufacture OF finished
products in these lines, have in
creased in price In a similar manner.
co That transportation and distri-
button costs for these goods have
likewise increased during the period
under investigation.
| Arbitrary Power IL Helpless.
LAS you suggested in your address al
the first meeting of the committee oui
only police power would be the power Of
publicity. 1t Is obvious that no arbitrary
power. whether OF government of CAPT
tai or OF labor. could of itself lower
prices in a general world market tending
upward because of. the tremendous re-
duction in production following the war
THE committee would submit. there
fore, the proposition that in the clothing
I
larger and more detailed advertising IN
the daily press than there is with re.
spect to any other commodities, ano
this method of publication Of what prac
tically amounts to daily competitiv,
price lists the committee submits con
stitutes the best possible police power
for reduction and control of prices II
these, commodities"
The committee decided also that 4
does not seem feasible or practical tha
the retail dealer exhibit at the tim,
of sale his cost price. as had been sug
gested.
Mr.. Williams said the investigation.
made by Col. Friedsam and his com
mittee disclosed that a man could get
serviceable hat as low as So and a good
one at 81. For a fancy hat he said
he need not pay more than So.
when a man pays SIS for a hat, ;
he added, hes a bad buyer. mar
can get what he wants II he shops
around"