New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-11
Brooklyn Man
Held for Trial
As a Profiteer
Federal ''Flying Squadron"
Finds Haberdasher Chars-
ing S4o for Raincoats
That Cost Him Only $23
Read Dealers Price Code
Arrest Is Result of Clever
Detective Work: Flood
of Complaints Received

Joseph Nichthauser, q berdasher
with store st Court and Montague
streets. Brooklyn. is the flying squad
ron's" first victim in this part Of the
country since it began operations
against proiiteers little more than a
week ago.
Nichthauser was arrested yesterday
charged with violation of the Lever
act. ARA gued before Commissioner
.NcCabe IN Brooklyn ne was held in
$500 aail for examination April 21.s
The specific charge against Nicht-
hauser IS that he asked S45 each for
raincoats. According to agents Edward
J. Williams and Shelby Williams, who
him S28 each. five cost $3.50, and nine
cost hin $50 apiece.
Leroy " Ross the Federal attorney
in the case, said yesterday he would
ask fer jail sentences in this and all
like cases regardless of how powerful
the alleged prodteers may be.
Reads Dealers Price Code
This case gives An interesting insight
into the ability of the flying squad
rom Selecting one Of the coats the
TWO agents found on the label the let
tiers "0DXX." They picked out an
other and found "OUEX" on the label.
Another coat read DIX"
Experience told them that these let
tiers were code to conceal the whole
sale price of the garments from the
purchaser. They figured it out The
code IS: God help US x"
There are nine letters in the code
not counting the X &c" stands for
-" and So OF until s.. which is "9."
they loUad mat "ODAX" stood for
$500, "oCEA' meant $3.50 and
"uAAA was $1,000. Nichthauser is
sad to have admitted that these were
the wholesale prices.
Examination =. Nichthauser's books
disclosed that last years gross sales
aggregated roughly Sl23,7S7 3d. the to-
tai cost OF merchandise s77,7O5.79, and
the gross profit 46,0Sl.56.
a. ~ Riley, head Of the bureau Of
profi,eer estigation, with offices in
&
YORK. de came rom Washington in
case dealers here might think they
could Use the railroad and harbor
strikes as al excuse for raising their
prices
Many Complaints Received
Letters arriving yesterday showed
the price CT coAats in store in Yon-
Aefs 70 be S. = dozen. The complain
ant compromised with he dealer and
bought half dozen for So.
G4m eampnor, which once upon g
me people used 10 buy in quantities
Il put n trunks along with the winter
clothes sells nearly everywhere for 40
cents an ounce retail Some one has
wrsten 20 tae Flying Squadron to
4sl Vay."
AL the letters that come to the Of
&c are n deadly earnest. Rage stands
out IN every sentence. The fact that
az one mas the nerve TO ask $40 a
quart or ICE cream affected one Of the
comp .alnants Oats quoted at $50 for
an eighty pound bag, moved another
man 20 e-o4uence.
ter'toe flTst time storage warehouses
we're attacked as W ust in their charges.
ne cnain restaurants continue TO be
me SUBJECT OF much criticism Thev
are comp alned Of daily.
A;-o-aer writer warned of a fake
sugar shortage. He said one of the
chain grocery stores was getting in
sepp-.es OF sugar and putting it out
q sgt, telling customers they could
net e. my. lie said the man in charge
Oh one OF these stores predicted 40
cent s--ar by next week.