Evening journal., 1919-07-12
HIGH FOOD PRICES
UP TO MIDDLEMAN
Chief Counsel for Pa. Food
Administration Says Only
Solution Lies With People
URGES RESUMPTION OF
LESS" DAYS IN HOME

PHILADELPHIA, July i2.-Charles ].
Hepburn. chief counsel for the United
states food administration in Pennsyl-
vania during its recent operations, talk
ed in general way today on the pres
ent eXorbitant prices and the possible
methods OF forcing them to a lower
level
The United states food administra-
tion was solely responsible for main
talning food prices at something like a
normal figure during the period Of the
war, said Mr.. Hepburn. 1T fixed profits
rather than prices. and established
rules which prevented pronteering
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.
1t Is a mistake 10 charge the small
dealer and retail grocer with pronteer-
ing. say this as a result OF my ex-
~ AaANN aN a AAANAAlhNA VI AHt AWWu NN~
ministrail0n. My observations 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 u
leaves the hands OF the producer until
il reaches its ultimate destinstion-the
consumer.
There are anywhere from two TO
half 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
distribution. The system Is defective
and until. let US say. for example. farm
products can be delivered directly from
producer 10 consumer, the latter Is at
the mercy OF INSCRIPTIONS wholesalers
and commission merchants known as
middlehen.
They are the real profteers as a
rule. Until this condition is remedied
I can see no limit TO the prices that
may be asked for any article Of food"
What remedy can you suggest that
will change the situation and reduce
prices TO something like a reasonable
figure" Mr.. Hepburn was asked.
You are asking a question that IS
on everybody's lips; one that is eX-
ceedingly difficult TO answer. We fur
nlshed a measure OF relief during the
war by the establishment OF curb mar
kets i'm various parts OF Philadelphia.
They were very popular, but we had no
power or authority TO continue them
after the armistice was declared.
AT these markets, as you Will re-
call. farmers sold their products along
the curb at prices very much below
those demanded at corner groceries. The
people bought directly from the pro-
ducr al these markets. The grocers
were compelled TO ask high prices be
cause they were buying through com
mission men who paid little and asked
much for the produce they handled. l
regard the curb market as a partial so
luton Of this problem
rs there no law that can be IN
vOked TO limit the excessive pr0nis
OF these middlemen?'
"Under our national constitution
Congress in normal times has no pow
er to Limit profits or fix prices. As ]
have stated, the food administration
during the war period did not fX
prices. II controlled them, however, in
large measure by fixing the margin OF
profit TO be levied by the dealer.
zone OF our food laws forbade one
wholesaler from selling an article OF
food To- another wholesaler. This pre-
vented continuous piling up Of profits.
"As I understand conditions now
large dealer sells TO a smaller Whole-
s,ler at a fine profit and this smaller
wholesaler resells 10 another middle
man. collecting an additional profit, so
that by the time the retail dealer IS
reached. he must charge an eXorbitant
price II ne hopes TO make anything
al all and keep his establishment go
ing. Il comes back you will observe
TO the mlddleman.
Naturally food prices might be eX-
pected 20 go somewhat higher than
heretofore. though not TO the outrag-
eous figure demanded for certain ar
ticles.