Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-02-17
RENT PROFTTEERS
fCoot;nued from PAGE One)

mine their profits: and t!,at the ou-
reau Of statistics be directed to pre-
pare and publish at frequent inter-
walls an index of living costs
While the war is the general cause
Of the advance in prices. the comnis-
sion says il has had that enect Only
because it has caused economic laws
to act with greater violence than they
ordinarily do. Five general causes
are noted-D, the Law Of supply ana
demand. under which general mead
ing are included war wastage, loss OF
productivity, eXtraVagant expehoi-
ture, and foreign exports and I'M
ports: ca, currency expansion ana
imitation of credit which affects the
value Of the purchasing medium: co.
increase in costs Of production; 60.
increased taxation, and 80, so-cai!ed
profiteering.
Shorter hours of labor and the
more alarming conditions Of LABOR
unrest. strikes. changing jobs ana
the tendency to take frequent vaca-
tons have reduced the productivity
! Of labor in this country" says the
/ commission. Hours Of labor have
been shortened in Massachusetts,
from 81 to IS per week and In some
cases to ~ hours Ordinarily re-
duction in hours CT labor does not
show a similar reduction in produc-
ton, but testimony OF owners OF cot
! ton mills. manufacturers of WOODEN
and worsted goods. the shoe trade
and clothing manufacturers. building
! contractors and Others, IS al to the
erect that the per capita production.
based upon pre-war standards, has
fallen off not only in q percentage
! equal to the reduction in hours, but
; In even greater proportion.
. "A very important factor in in
; creased cost of all merchandise is
! the spirit of extravaganza which
| seems to uosses,r a large part Of the
population. Higher wages TO laborers
nave left margin over their needs
which they are spending upon long
desired Injuries
! concerning one article only. wom-
ems silk stockings. reporl, from
seven Of the largest retailers show
that in 1914, s223973 was expended for
1858 pairs. In 1919, s62a45s was
paid for 3l2,s25 pairs.
I The effect Of this demand for lux
| uries is to increase materially the
cost of necessaries. There is greater
| profit in the manufacture and in the
SAFE OF iuxuries than Of necessaries,
with the consequence that an al.
ready depleted productive power has
/ been in part diverted from the Gre
a'lon of the necessaries TO the pro-
! durtlon of luxuries.'
| Inc report states that instances Of
! prohteering in commodities have beer
| very rare and that retailers ami whole
t saierS nave as a general rule kept wei
! within the fair limits of trade
! with respect to leather. cotton anf
wooden goods. the commission savs m,
! very large profits have been made j.
all three, that citizens Of Mas.acbuse,.,
! nave shared in these profits and thu
/ their proiIts have materially increased
! TO the consumers in this state the price.
OF shoes and clothing bu. the commits
| sion has found no evidence of collusio-
or large profits. 1T may De said tina
as general proposition they hay,
! merely taken their market. and wheth
! er this constitutes criminal protit.erin.
-exaciing excessive prices-is for o;he
tribunals to determine
/ Discussing the purchasing power G,
the dollar. the report says:
"A part of the population, perbans
| haif. have become prosperous in a de
gree never before known. at the ex
rense OF the other half who are feel,
Ing acutely a comparative poverty, Il
prices had reached permanent lev,
The solution might appear to be to adj
vance wages and salaries of the nor
ton who have suffered to the noin,
! where their purchasing power is ono.
more reesta blished; but. even if il we-,
practical. this solution would at one.
produce a renewal of the present d;so-
der. greater demand would be Great
ed, with the result that prices of com
modities would jump another notch"
The commission states that price fx
ing. while necessary in a time of emar
gency, as permanent remedy wou,f
be complete failure
J