The Dawson news. (Dawson, Ga.) 1889-current, 1920-11-02
GOVERNMENT KEPT SILK
PRICES UP AS PR0H|TEER
WAR DEPARTMENT MAKES A
BIG SUM ON FOURTEEN MIL
LION YARDS LEFT OVER"
NO BARGAINS OFFERED

Two Corporations, with NO invest
ment, Get Half of Net Proceeds.
Girl Models Who Display Finery
Are On U. S. Payroll.
NEW YORK, n. Y.-While the
war department OF the United States
has been throwing away huge sums
OF money in the disposition Of many
kinds of army supplies, it also has
been playing the role OF silk prof
iteer at the expense OF the general pub
lie, according to news story printed
by the New York Herald.
When the department, through
overpurchasing of silk, found itself
stranded last year with $4,000, 200
Yards for which it had no use, 1t en-
tered into an agreement with two
large corporations by which it per
mitted them to take 100000 yards
on credit.
1t not only allowed these two cor
porations, which invested no money in
the transaction, to keep one-halt OF all
profits on the sales, but it allowed
them to deduct from the profits GER
tain large commissions paid to their
own representatives, and gave them
ninety DAYS in which to turn over to
the government its share of the pro-
ceeds of the sales. This last named
phase of the agreement permitted the
corporations to hold hundreds OF
thousands of dollars of government
money for three months before paying
it over and without any interest upon
it.
Why Silk Didn't Drop Faster.
This action of the war department,
which is being denounced as an ex-
ample OF favoritism and unfairness to
other dealers as we'll as to the public
at large, is said to have been one of
the reasons that silks did not drop fas-
ter than they did.
The stock owned by the government
in September, 1919, was particularly
adaptable for use in clothing. sport
goods, upholstering and draperies. 1T
was the kind for which the women OF
the country were clamoring, and
which they were hoping would drop
in price. There can be doubt that had
the government released this stock 10
the people of the United States at
dollar a yard, which would have more
than covered cost OF purchase and all
expenses, it would have been able to
dispose of all of it and to have earned
fair profit.
The effect Of the government &C
ton was to maintain artificial prices
TO permit two favored corporations to
reap huge profits without investment,
and to put the government in the same
category as the prohteers. -,
In general the sale price OF this SILK
has been several times the original
cost plus expenses of fitting it Tor
commercial purposes, so that the per.
centape of profit is far in excess OF
what the department of justice has
held to be reasonable in proceedings
Instituted against many private deal
ers. This silk cost was, according to
Grade from o. cents yard to $l.l5,
and the price that it has brought, and
that is still being asked for it at pub
Lie sale. ranges from $3.50 to 81 a
yard.
Wages Deducted From Profits.
The corporations with which the
war department has allied itself in this
partnership arrangement also have
lemployed large forces of women mod
els and other persons, all of whose
wages are deducted from the profits
and therefore partly borne by the gov
ternment.
Why the department ever ordered
such an enormous quantity OF silk is
a mystery to many persons. Within
the last few days persons connected
with the handling OF army supplies
have expressed considerable astonISh,
lment at the announcement that /5,OOO
lnew pairs OF shoes are to be delivered
from a factory i'll Long Island city to
the army supply base in Brooklyn,
although it must be apparent through
casual observation OF army sale dis
PLAYS that the government is Kidding
Itself OF shoes OF all types and sizes IN
enormous numbers. The Associated
Retail Shoe Dealers of Brooklyn have
made public announcement OF sale
of army shoes to be held in their Dor
ough next week, which they say will
be of even larger proportions than the
sale held last year by the Meade Shoe
company under the supervision OF the
department OF justice.
lust why the war department IS re
leasing so many shoes at sacrihce
prices to private concerns and buying
another lot OF $4,000 pairs for one
base alone is unknown to the men who
are handling this shipment.