The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-06-20

Var On High Costs
Without Abatement
Department of Justice Launches
Campaign Against Profiteer-
ing Department Stores.

| New York, June 19.--Arrest mere
today of Frederick Gimbel, member
of Gimbel Brothers, who operate large
department stores in several cities
and merchandise manager and cloth.
ing buyer of the same establishment
will be followed by similar action
against a number of other alleged
profiteering department stores and
merchants of like importance, it was
said tonight at headquarters of the
department of justice flying squad
rom"
Gimbel and his two employees are
held under a thousand dollars bond
each for hearing on July 6.
All three were charged with making
profits in clothing of from 80 to s275
per cent.
The warrants were served by Les
ter S. Kafer, special assistant to At
torney General Palmer, heading one
of the flying squadrons investigating
profiteering here.
The arrests came as a complete
surprise at the store and officials
there at first stated they believed
there might have been some error. S.
r. Coons, advertising director later
gave out the following. statement
I'VE have not hah time to look into
the matter. 1t is possible that in a
business so great there might be one
or more co1ored pie&es of merchandise
marked at higheu price than is pro-
vided for in the Hlgulations. All we
known is that it Inland has been our
desire and intentioy to comply with
all government resfdations.
The warrants served this morning
were issued last ntcht by United
States Commissioned Hitchcock on
complaint of flying uardon agents
who charged four 81 {cific instances
OF profiteering.
to have been made was at an adver-
tised sale of mems elothing. 1t is
charged suit costing $33 was sold
for SIS. Other charges were that
$3.50 mohair suit was sold at $40; a
SIS suit was sold for s33.75; and an
other suit costing $3.50 was sold at
SIS.
The three. Gimbe1, Dowdell and
Slewter pleaded net guilty to the
charges. As they and their attorneys
started to leave the building, gem
eral fist fight ensued when press and
moving picture pnOlOSTapHeTSa~ AFkNA
to photograph them. Press repre-
sentatives announced their casualties
included a smashed movie" machine.
The fracas started on an upper
floor of the building and developed in
to a running fight down the stairs,
several offices and across
Broadway from where Mr.. Gimbel
and party beat a retreat in an auto
mobile.
Washington, June 10. 80 Warning
that agreements between manufac-
turers and dealers which prevented
the dealers from reducing the selling
prices of manufactured articles is un-
lawful was sounded today by the de-
partment of justice as part of its
to lower the cost of living.
Indictments recently were obtained
against Colgate & Co., Attorney Pal
mer stated, charging criminal viola
ton of the Sherman act for procuring
agreements with dealers to adhere
to fixed resale prices.
General reduction in prices is ex-
pected by officials of the department
rs result of the clear definition of
The law, as it is pointed out that many
have been unable to CO.
operate in the campaign to lower liv-
ng costs because of the fixed prices
1n certain manufactured articles.