The labor world. [volume] (Duluth, Minn.) 1896-current, 1920-05-29
fRoFITEEkuJQ I'm FLOUR.

- 10 ~Ao'ASo w. 1dOOI tHdL wartime
profits absorbed one:third Of the price
paid: BY the. consum er for. l. barrel Of
flour, and that SO per cent of this huge
margin was. chargeable to pro6teering..
!. The actual c,st Of producing barrel
Of flour in la17,> including interest,
freight and other expenses Of the miller,
va. only $3.50. Far this the con sumer
was forced to pay at least *14.5o: Had
the miller: jobber, wholesal er: and re:
taller: been content with reasonable
margins, This flour might ha We been
available. to the purchaser: at $11.57.
However, the product was saddled with
3; 90 1nan7y extortionate profit in passing.
from THE miller through the various
distributing agencies, that the. ultimate.
cost to the consumer was more: than
three: dollars in excess. Of .srsaSona bile
selling price: Il: .. .'~> "
Profits: and profits were piled up and
accumulated until the: price paid by the
con sumner seems largely composed of
profits. Prior to the: war the. miller s
profit Of 1871 cents a. barrel assured a
liberal return Of IL per cent on in:
vested capital: Under government SUI
pervisi On during the: war, tho millers
were permitted to take almost double
this profit of Is cents barrel. But,
during the year ending June: 80, 1917,
the millers had been actually. averaging
81 cents BARREL while one mill, it is
said, showed returns for d period of six
months Of ~ barrel.
In 1917 the profits had .3adyanced
practically s75 per o. mt over 1918 earn
ines, while. the: cost, or; operation. which
include: abor cost advanced. only 2e
per cent in the same period, or only
FIVE cents 4 barrel, as contrAsted with
an increase in the miller's profits Of
more than Is cents barrel. The
excess profits We're more than ieht
times the increas. in operating and
labor expense, amounting to a levy Of
81 on each family in the country. ;.
The millers had little excuse for in.
creasiing: their margins on flour, since
the price Of feed, an. important by,
product of the industry, scared. to such
an extent during the war. that it ,prac ;
tically compensated the millers. for tie
entire cost of convert ing: wheat into
flour. 49,. :
The jobbers:: are also guilty: Of: mex
cusable; pro6teering. While their. cost
Of. operation Increased only IL per- cent,
their profits Were: nearly Us + per- cent
gkater in .1e11 than. in 1914. During
these years the jobbers Sliced; a profit:
sering. melon Of approximately ls,ooo,-
600, Or: i tax. Of nearly: ontstd6llaE on
every :. family. in the country. AT the
pEe-war rates" Of: return jobbers, were
tttkih & more than 20 per Cent on: their
iAvcstmeht.~ !. :: -
Tho margins taken. by: the. ,wholesal.
ers and retailers. varied: So much that
10 economist has, ;b(eh able is 1T, vi
t. rite The preci:t I hsaire, 'as::to profit
tlfiintg through. those kedcits;1 bqttit,, Is
tlear :that::the. price. g6ueine wal stn::
1ral: all. tie Nay. dow tht line: from
to f miller ,to}the grocer = y. 80 !!
.fot: course it is admitted .thit-l many
Influences .hays operated. SINCE Ii1917 to
increase production costs, but Aot,' in
any degree rsuffi5i eft: to warrant + the
prices eFaetsd from; the. consumer. "A
aty event much Of: the:s INCREASED: costs
whis is: haye been passed on to: ths con:
sumner should ::havt been absorbed, BY
decisive profits. ~ ::'. IL, ! I'll: ST.; j.:
1t {, 9, til: toyetnasnt: relsssss:its
r t,.ht $50, Il;