The evening world. [volume] (New York, N.Y.) 1887-1931, 1920-05-20


Of the National Association VT! not
BE- backward In aiding to bring about
rSductions."
Thia seemed to be the general sem
timsnt Of the members Of The boGy.
In this city more merchants an
nounced that they had Joined in price
reductions while others are propar-
ing TO do 90.
The Merchants Association re-
viewed the situation in a statsment
that said In part:
''One big plant states It Is unable
to continue. Another plant reports
an acute shortage Of raw materials
together with the greatest dificulty
In sending its product out OF the city.
This plant has laid of some men and
I 10 keeping many others at loss in
order 70 conserve It's supply OF skilled
employees
'shoe manufacturers and dlstribu-
tors have been importing their pro-
ducts from points as far as Boston by
triiek"
Vice President Frank Burns OF
Burns Brothers, coal dealers, said:
Normally, we send our customers
their winters supply at this time. We
cannot do It. All we can do II TO take
care OF the day 70 day demands. The
railroads haven't men for their light
ers and do not have enorSh light
ers and barges. We have to hire
barges Independently. Whereas we
were accustomed TO pay about SIS =
barge load from Perth Amboy We now
have TO pay from t225 TO $500 per
barge. OF course the added cost has
to % placed on the price charged the
customer"
An ofiolal Of the Hegeman-Harris
Company, building contractors Of no.
lsS Madison Avenue. said yesterday:
I'VE have nine building operations on
hand. OF these we have had TO shut
down ave, involving an investment
Of SS5O,OOO and throwing 1000 men out
Of work.
'1t took US two months to get two
carloads Of steel from Youngstown.
o., to Jersey City on, the Pennaylvania
Railroad. And to-day the cars are
stlll in Jersey City. 1t has taken US
month TO get q carload OF bricks from
South Amboy across the river. ana We
haven't received the carload yet
The attack by banks on high prices
through credit restriction was ee-
Elected In to-day's stock market.
Additional losses Of l to . points at
the feverishly active opening, with
extensions during the course Of the
first hour, were generally attributed
to further enforced liquidation for
out-of-town interests.
Commission houses with direct wire
connections to Middle and South
western points had large selling
orders. These were augmented by
heavy offerings from local sources.
The short interests also helped "
hasten the decline.
A considerable part OF the further
reaction was believed TO have re-
suited from the more pressing needs
Of merchants and other individuals
who found their credit impaired by
the methods adopted by the banks at
the solicitation OF the Federal Re-
serve Board.
Messages to local bank officials
from their correspondents told OF the
rising tide of the price e-cutting move
ment A prominent bank with exten-
sivs New England connections inti-
mated that Boston was reducing Its
loans on feathers, textiles and cop
Z pers,
ChicagL Pittsburgh. Cleveland and
smaller Industrial centres OF the Md
die West reported that further cur
taiiment OF credits and reduction OF
business activity were in progress.
The head Of a large local bank de-
clareA that financial conditions
throughout the country already have
been strengthened in consequence o.
the price reduction made in lines o.
merchandise. He believed, however
that the movement might get beyonC
reasonable bounds and work un
necessary hardship to small trades
men.
I'm the reaction from excessivel,
high and unwarTanted prices" sat
this official, there Is danger that tn
pendulum may swing too far tn
other way"
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