The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1919-10-03

prices will never return to the pre-
war level the period of REIMBURSEMENT
will not be nearly SO long as the per-
iod of inflated prices. The law of
averages should govern and the sub
stantial profits earned during the past
five years should be spread I'VE the
period of reconstruction.
2. We realize that it is customary
for the merchant to mark goods Of
style and novelty at a much higher
margin of profit than the ordinary
merchandise, but we do not think that
in order for the merchant to protect
himself in the cleaning up of odds and
ends at the close of the season it is
necessary to charge the customer from
fifty to one hundred per cent gross
profit on such goods. The odds and
ends which are marked down at the
close of the season as a rule repre-
sent a small percentage of the amount
! of goods disposed of during the sea-
son..
3. You state that under normal
| years the cost Of doing business in
the middle west and northwest is twen-
ty-five per cent of the gross sales.
Assuming that twenty-five per cent
of the gross sales covered the cost
of operating in normal times, is the
merchant entitled to use the same per
cent of the gross sales as an operat-
ing expense, plus interest on the adj
ditional capital invested and the in
creased cost of labor and other oper-
ating expenses, under present condi-
tions? For example, in normal times,
using an arbitrary figure, we will as
sumo that the merchant paid four dol
lars for a pair of shoes and sold them
for six dollars. He made a gross prof
it of two dollars, or fifty per CEN on
the cost price and thirty-three and
one-third per cent on the selling price.
This profit represented the fixed
charges, operating expenses and a re-
turn on the investment. If the same
pair of shoes now costs him eight dol
lars, the average merchant applies
the same percentage, and in many
cases, adds the increased cost of doing
business under the present conditions
and sells the shoes at a price ranging
from twelve to fifteen dollars. Why
should he not be satisfied with the
gross profit that he enjoyed under
normal conditions plus interest on the
additional capital invested, together
with the advance in salaries and other
operating expenses as prorated and
applied to a pair of shoes?
4. If the merchant must have the
margin of gross profit which he is de-
handing today, then the system of
the retailer to reach the customer is
too expensive and there are too many
merchants in the field.
5. You state that "advanced prices
are not all caused by increased price
of raw material, increased wages and
decreased hours, but more than one
half of all increase along the line is
due to the fact that the dollar is not
the dollar of before the war. Why?
Because of increased circulation and
increased CREDITS" You might also
have included the increased or over
capitalization of industries (capitali-
cation which does not represent actual
money upon which the must
pay a r%eturn). We agree with you
that the increases in wages have ad-
ded a step or two to the winding stirs
leading to the present high prices,
but you cannot deny the fact hat the
man who has something to sell is the
fellow that has received the real ben
eft.
6. Your determination to cooperate
with the commission, open your books
and take the public into your conf
dence is commendable. Cooperation
and fair play are the foundation OF
progress. Such a policy, if pursued by
all, especially by those in control
means the advancement of Montana