The Washington times., 1920-06-23
The Lever Act and Arresting
Merchants
Dangerous Powers of Blackmail, and the Public
Misinformed.

under the Lever Act and doubtless with the best Of nten
tons and integrity far HEADS Of the department are
concerned has been aestng merchants on charges OF
profteerins and holding them under bail
1t is important that the public should understand what
this means
You read announcement, made with great blast OF
tmpets that such and merchant has been caught
making profit of one, two three hundred per cent
EVERY merchant of any consequence makes such
profits certain lines of goods and loses money makes
nothing other lines of goods
Conducting big mercantile enterprise Is complicated,
not easily controlled but very easily eoparsed by legsa
on half thought out the acts Of officials based on whi
or other motives. ..-.
As general rule, large profits made uxuries;
that to say things not absolutely necessary The feel
ing that those who buy such things afford to the
profit Small profit is made necessities. For
years before the practically every store of any conse
quence sold for instance not merely without pron
but at loss
One big store in Paris always sold gloves at cost or
less thus attracting the who buy the gloves
to stay and buy other things that DID pay profit
It is impossible to say justly that who charged
$40 for certain article would be proteer and another
honest merchant if he sold the article for ST.
It depends the overhead expense and the lover
head depends not merely rent or on salaries but on
what it actually cost to do dollars worth OF business
You might say, hastily, that of course, man paying
very big rent very expensive street must charge more
for his goods to pay his rent The assumption false
his better location enables him to sell three times
may be able to charge oneha the profit charged by store
in poor neghborhood and yet make the end Of
the year than the poor neighborhood store
Every merchant is compelled to arrange his socalled
prots That is to say, the amount that he adds to his
retail prices and above his wholesale purchase prices
according the KIND of business he does the general
character Of his CUSTOMERS his location and many other
things.
What adds to the price does mean of course,
his profit Every big merchant charges for certain articles
hundred per cent than what he paid for them But
merchant makes profit Of 100 per cent 80 cent
20 per cent all the business that he does.
very big store does business Of thirty millions
year. that to say the total amount of money taken in
from the public amounts thirty millions year. the store
could consider itself well off if it had profit of 10 per
Of the gross three Millions at the years end And very
few do as well as that
When you buy goods at big modern store you are.
Of not merely paying for the goods delivered you
You pay for the for the high insurance rates. for the
taxes for sufficient profit after income tax is deducted the
salaries of clerks the losses goods that lose their fresh
or tmeliness and are sold at loss
The merchant must buy in the early spring for sale the
following Christmas And he must buy at Christmas time
f sale in the spring All the cost of buying the interest
money and all other costs of MUST be added to
the price OF merchandise
Each merchant figures for himself well he can
what charge will best suit his business considering the
with whom he deals One will make little profit
line of goods upon which another will feel justified in
making big profit, and vice versa.
Successful merchants average, charge profits that
at the end of are not very far apart for the total
And the difference in profit is often not by any means due
the fact that charges than another
certain article but to the fact that shows greater
genius in buying
The merchant who is very good buyer, and who gets
for his customers by quick action foresight bargains
another get feels PROPERLY that he is entitled to
additional profit.
For instance there great flood at Dayton, Ohio.
Men through the streets rowboats One of the first
70 in hoof T. ~
the abest business in the United States now unfor
tunately dead This man. who literally worked himself to