The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1920-04-22

Almost any day representatives OF
the Department Of Justice are expect
Ell to make Kenosha visit to carry on
the nation wide probe Of retail store
pylces which has Deen in progress for
several weeks. Kenosha merchants
are not worried, however, for, it IS
said that they believe that they have
nothing to fear from an investigation
and that the probers will only to able
to substantiate their claim that prices
of all classes Of merchandise in Keno
sha are as low as they can be in or
der to assure reasonable profit to
the merchant on his investment.
"Kenosha merchants, as rule, have
nothing to fear from this investigation
whenever it strikes Kenosha," said
Horace G. Maddox, secretary of the
Kenosha Retailers Association, re-
garding the proposition. "There may
he a few retail merchants in Kenosha
getting price which they might be
able to shave down little but | 20
not believe they are arch-prohteers.
Why Pick On Merchants?
"Why should they pick on the mer-
chants ?" said Secretary Maddox. "ln
the investigations carried on thus far
the army Of probers have found only
three cases of prohteering against re-
tailers out of the $4,000 merchants
whose books have been thrown open
to the public | believe they will fnd
someone other than the retailer to
blame for high prices in Kenosha as
they have found elsewhere. Compe-
tition is too severe for the merchants
and economic laws have made these in
creases in prices necessary"
Secretary Maddox declared that all
Kenosha merchants, SO far as he knew
would be ready to meet the prohers
with open books and help them carry
on the investigation. For their in
formation he discussed several Of the
important things which have been
brought out in the Investigation.
Averaging Prices Discussed.
One Of the things which the govern
ment has investigated and which is
causing concern to Keposh2. merchants
because II is not understood is the
clause in the orders which, the gepre-
sentatives Of the department have re-
lating to the averaging of prices. This
suggests that in the event that the
merchant possesses an article which
he purchased at various times at dlf-
ferent prices the cost should be aver
aged and the goods marked on that
basis, 1t is said that whenever mer-
chants are found selling goods on the
present value or the replacement value
instead of an average cost, they have
a hard time explaining it. Kenosha
merchants are told if they follow the
policy of averaging they will have no
trouble.
The following directions are given
IN regard to securing this average
3. cost: Multiply the number of articles
YOU have at the old price, do the same
with the number you HAYES at the new
price, add and divide by the total NUM-
Der Of articles and secure the average
cost.
This is the item which has brought
the greatest storm of opposition from
merchants throughout the country who
insist that in order to keep IN bust
ness a merchant must base his price
on replacement value, 1t is declared
that bank would stop credit in a
minute to a store which it knew to be
following policy of not taking the
increases in the market so as to pre-
pare for any fan in price which might
come at any time.
Not Opposed to Probe.
The merchants can hardly be said
to welcome the probe because it brings
with 1t great deal Of annoyance and
inconvenience but there has been CO.
operation all over the country to the
officials in carrying on the investiga-
ton and Kenosha is expected to fall
IA line. National associations have
made a careful investigation of the
situation and in regard to the show
ing Of invoices and books has made
the following report and suggestions:
$50 far as the legal right is con-
eerned nobody has right to demand
such information from you except up
on proper warrant from court. This
has been decided by the United States
Supreme Court on January 26th, 1920
in the case of the SiNerthorn Lumber
company, VS.. the United tates. The
courts conclusion is as follows;
"The Fourth Amendment of the
Federal Constitution is violated If
government officers seize, without
warrant, documents Of defendant mann
ed in pending indictment. Evidence
gained by such a seizure may not be
used by the governments in any way
and, therefore, refusal by defendant,
after return of documents seized, to
comply with court order to produce
them, is not contempt of court, al
though the order was regularly drawn
if it was based on information gain
ed by the illegal seizure, and not up
on knowledge Of the facts gained from
an independent source.
1.-THE question, however, is much
broader than your legal rights. If
you are requested to show your books
and invoices and you decline to do so
that may be taken as confession Of
guilt for the assumption of the public
would be that if you had nothing to
conceal YOU Wouldn't hesitate to give
any information asked for
Put House in Order.
To show the stand of cooperation
which has been taken by the National