The Bismarck tribune., 1919-04-09
OH YES, PRICE OF FOOD S GOING
TO DROP, BUSINESS DOCTOR SAYS
It Will Follow Steel and Lumber
and Such Business Necessities
to Lower Levels.
BY A. E. GELDHoF.
~ E. A.. Washington, sureau.
Wach;nr<au n - Ns

There is every reason to expect
lower food prices In the relatively
near future"
So speaks George N. Peek, chair
man OF the, new Industrial board Of
the department of Commerce.
Peek describes the industrial board
as "the doctor to American business"
He believes the patient should be we'll
on the way to recovery within 60 to
80 days.
And after six months of GONZALES
cling, American business should be
healthier and more prosperous than
ever" Ire asserts 49,
Doctor" Peek is now diagnosing
the ailments Of the industries which
produce the basic necessities, such as
steel, coal, lumber, BRICK and build
ing materials. NAlready he and his as.
sistants have brought about reduc-
tion OF 10 to is per cent in the prices
OF steel. When prices of these COM
modittes have been brought down
then the board will 60 after food
prices.
There's no government, control
, about it; it's purely a voluntary ar
rangement
AND THIS rs WAY
. THE SYSTEM WORKS.
Here's about the way it works
not SO informally perhaps, but along
these general lines.
Down in the woodland. paper build
ing where the Council Of National De-
tense has given quarters to the indus
trial board, there's committee room
with a long, plain table and a few
plain chairs. ~
Into this room Chairman Peek calls
Judge Gary Of the United States Steel
corporation, Charles NJ. SchWab of
Bethlehem Steel, and other steel mag
mates. They all come quite willingly.
Now, Judge" says Chairman Peek.
"You know darn we'll steel prices are
too high. Nobody's buying any steel
because they can't afford it. Now it
seems to me it would pay you to cut
the price, even if you do lose a little
by it, so that people would buy. What
do you say?" ~.
Sure" says Judge Gary, flicking
I'll cut prices 10 per cent, if that suits
the rest Of you"
That's all right" says Charlie
.Schwab. ."Eut think some things
could be cut y per cent"
That's too much says some 9th
er magnate. 81 think 12>per cent
would be BETTER, M a-.ss. ~,
So they agree, on IL per cent. Then
they take a pad of paper and a pen.
Gil and figure out just what they'll
charge for various commodities. This
schedule is put into, shape, and they
ssall sign an agrenmnnt not to charge
fmore than it says tneSNl charge-and
lthere you are"
II One of the best things about this
s31eW and novel method Of price-fiXing
lis that labor is perfectly protected.
. The industrial board looks after that.
1T will permit no cut in prices that
Sswill give the employers a chance to
cut wages. So long as, the cost of
living remains high, wages must re-
eanain high, the board holds, so that
ssthe> living standard shall not be. low
fkred. Nh
SET BUSINESS BEAR
rSHOCk OF REDUCTION.
q The theory underlying the whole ar
rangement is that big business, still
aolding it's profits made during the
Wal, Is Ill d 1df UelLeF position 10
stand the first shock of readjustment
than is the American WorkingmaM
j mo one dares buy until prices fall,
and even then everybody will wait to
see how far they fall" says Peek Tn
. dividual action in lowering selling pri-
ces is therefore long drawn out and
unscientific. It. renders the market
unstable and dangerous
by the, sane and temperate action
all this can be avoided