New-York tribune., 1920-02-04
Merchant Says
Prices of Apparel
Have Reached Peak
Head of Big Retail Concern
Asserts That Public Has
Reached Limit; Predicts
Ouick Return to Normal

rrhe orinion that the puDilc mas ao-
sorhed all the high prices in apparel
,;nss that it can, expressed by t, A.
ni'Connell, president Of the +. T. Stat
..ry Company OF Boston, Yesterday at
'ess onvenfion of the National Gar
,,ent Retailers Association, was con
- .o IN py number of prominent
rstailers present. There was distnct
isS;rs that prices at which goods can
,s ,esH Hs;str;buted profitably have reached
us 20 neak and that further increases
MA mean q much curtailed consump-
tion. -, s 49,; .,
.n-;ing to view privately expressed
~. several Of the retailers, is tending
.s'xard decreased purchases Of spring
',orrhandse by retailers. One of the
,"u~.st dress manufacturers in the city
"a Yesterday that. while the market
'as crowded with buyers, there were
80 "lookers" and number takers"
smone them than real purchasers.
When orders are placed, he said, they
are small.
Advises Cautious Buying
"y have every reason to believe" ,"
tonic Spring Buying Policies and
high prices. There will be q quick re-
.urn to normal" He advised his fell
Inv retailers to buy sparingly and to
cease ordering stocks six and eight
months in advance. as many of them
have been dong for the last two or
three years He deprecated the placing
q. orders with the price Of merchan-
disc to be determined at the time of
delivery. Buy only for your immedi-
ate needs" he said, land return TO the
methods OF merchandising pursued in
normal times.
Profiteering was discussed by Frank
in Simon, president o. the association; ;
John Hahn, secretary, and also by Mr.
0'Connell. The last named alluded to
the large dividends distributed during
the last year by textile mills. and con-
.rasted them with the small profits
made by retailers. Few of the latter,
according to Mr. O'Connell, made the
usual G per cent net profit, while mills
paid dividends averaging between 80
and 30 per cent. Retailers have to
borrow money from the banks to pay
their bills he said II had to do it
and other retailers told me they also
did"
High prices, according to Franklin
Simon. are the result of lack of pro-
duction. the luxury tax and the excess
profits tax. The luxury tax he said
because OF the advanced prices. now
includes many articles that are neccs-
sites and serves only to make them
still higher in price"
1t was brought out at the meeting
that the Department OF Justice unoffi-
c.ally considers profit of so per cent
on the cost. or 40 per cent oil the sell
ing price, a fair margin of mark-up
Ior apparel retailers. Also that sell
ing prices, in case merchandise IS
bought at different times at different
prices. must not be based on the pres
ent market price but on an average cost
Advocates piecework System
Harry Cohn, cloak and suit manu-
iac.urer, who humorously related the
troubles OF producer of garments al
the present time, said the recent
wage Increase granted the workers il
that trade b. Governor Smiths arbitra
.ion committee will not put a crimT
in the manufacturer, bat a permanent
wave He advocated the return to
the piecework system in the industry
saying that the week work system now
in vogue WAS causing "slacking" among
the workers and adding 70 the cost Of
production.
Franklin Simon was reelected presi-
dent of the association. Other officers
elected were s. NJ Goldberg, New York,
first icc-president; P. A O'Connell, z.
T. Slattery Company Boston. second
president: Milton Wolf, Joseph's,
New York, third vice president; Harry
j., secretary, and Oscar Abel. New York,