The Washington times., 1920-01-09

AS SPROF|TEERS
Fair Price Committee Asserts
Some Milk Dealers Exact
Exorbitant Profits.

The, decided difference OF opinion
between the grand jury and the fair
rice committee" which arose over
the dismissal Tuesday OF cases asains'
four local grocers charged witn
profiteering in milk. led last night &c
the issuing OF a statement by the com
nittee in which IL brands dealers who
sell milk at. more than is cents q
luart and o cents a pint as pronte.rs
With these prices for milk as the
high water" mark. the fair prise
committee is today going on with iti
work of collecting evidence against
)rofiteers in milk. and other COM
modities.
Make Allowances.
Even in setting IS cents as The
highest fair price for milk. every al
owance is being made and then TIE
iealer has an "ample" margin OF
profit, according TO the members OF
the committee. In fact, some OF the
members were outspokenly In favor
of setting II cents as the top price
"In my opinion even IS cents a
quart is too much to pay for milk
which the producer furnishes for ia
cents a quart" stated II. ID. Atkin-
son. secretary of the committee.
Inc statement lsSucu ioSt hBu
shows that "the gross profis from he
,etail grocery business range from
IA per cent to IS per .cent--the most
common gross profit found in most
stores being about 20 per cent
"On milk, eggs, sugar, bread. and
similar commodities, in which the
stock turnovers are numerous. the
percentage of profit generally Is and
should be much below 20 per cent,
states the report. ION other articles
which turn more slowly the per-
centage of profit is much higher.
Selling Expense.
"The wages OF the sales force have
been found to range from 80 per cent
20 IL per cent, the most common per-
centage being 6.5 per cent. No sales
manship is needed to sell milk, anc
he time of the employe to dispense
1t is the minimum. Milk should moi
be expected to bear the same selling
expense as other commodities which
require more labor and material.
"The average net profit from trans
acting retail grocery business Is about
3 per. cent, and il the average net
profit Is per cent, the net profit
on the several articles should not bt
much greater. nor much less thar
that. Bearing that point in mind
and reducing the calculation to con
crete figures with 100 quarts of milk
as q basis, the result is as follows:
Gives Exact Profits.
Investment, 100 quarts at 16 cents
$500; sales, 100 quarts daily, 3.Oet
quarts a month, at Is cents, S540
gross profit, cents a quart. IL 1-s
per cent of sale price, $50; net profit
computed at 3 per cent of sales, S27
ice, 7-1O per cent of sales, 81; bal
ance, $40.
with milk at 20 cents a quart the
results for a month would be as fol-
lows:
sales, 100 quarts daily, 5000 quarts
a month, at 20 cents, $500; gross
profit. cents a quart, 20 per cent
of sale price. s120; net profit, $50
ice. 81: balance. $50"
In commenting on the action OF tnt
grand jury Clarence II. Wilson. chair
man of the fair price committee
stated today that it was not the In
tention of the committee to criticize
the action of the jury. but that II
wanted to lay the case before tn:
Washington public.
At a meeting OF the committee held
yesterday afternoon In Mr.. wilson's
office in the Department Of Justict
building the general price situation
here was discussed. Prices on lamt
and beef and the margin Of profit
on pork were approved.