The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-05-18
HIGH COSTS HAVE
REACHED CLIMAX
DEALERS CLAIM
Announcement of Price Reduc-
tiOns From All United States.
Break in Market Three Weeks
Ago, Says Merchant.
CONGRESS MAY START PROBE
Hot Air Prosperity Cannot Last
Longer, Says Lefflngwell.
st. Louis and Oklahoma City
Merchants Stand Pat.

Washington, May 18.-A resolution
to investigate the relation between
high prices of necessaries and the
concentration of wealth was intro
duced in the senate today by Sen.
David I. Walsh of Massachusetts.
The investigation under the resolu-
ton would be made by a committee
of five senators and the president
would be requested to give the com
rnittee access to income tax returns of
corporations.
Banks Call Loans.
Price reduction by retail dealers
thruout the country constitute one
more sound guarantee that " the pres
ent hot air prosperity is bound to
cease" r. c. Leffingwell, assistant
secretary of the treasury, said today.
Dealers are cutting prices in the
mercantile trade for two reasons only,
Leffingwen said. These reasons are:
One. People have stopped buying be-
cause prices are too high Two.
Banks are pressing the merchants to
take up their loans.
be reduced generally because neither
the United States nor the world can
continue long to do business on the
present basis"
Manamakcr started II.
John Wanamaker. millionaire de-
partment store proprietor, recently
initiated the price reduction move
ment by cutting all prices in his stores
20 per cent with the announcement
that the Wanamaker stores wished 10
assist in restoring the nations eco
nomic situation to normal. Hundreds
of stores thruout the country foloWeu
Wanamaker's example.
George Brandeis. head of big
Omaha department store. labeled
price cutting for patriotic motives as
''buncGmb." declaring stores are cut
ting prices because the market broke
three or four weeks ago.
Lcffingwell, when shown copy OF
Brandeis's statement said; There is
no doubt that the market has broken
in this particular line. 1t is 1mpos-
sible TO predict whether general ma. ma
tion-vvide price reduction is beginning 9.
There is no doubt, however, that II
must come.
The one sure method of reducing
prices is to stop buying except those
things necessary to sustain life.
Chicago Merchants Cut.
Chicago, Ma 1S.-Clothing mer-
chants here have cut men and women
clothing from 20 to 80 per cent, re-
tailers said today.
I'VE reduced the prices of men S
clothes 20 per cent some time ago
said Louis Baer. head of big cloth
ing establishment.
1T isn't due to the high cost of liv-
ing or any desire on our part to bring
down prices" said Baer. People
aren't buying clothes. that's all"
Baer said he believed the people had
not bought because of the wet weather.
The overall stunt hasn't affected
the market any," he said.
State street department stores Off
cially today stated they planned no re-
duction in price. But other retailers
saw they are slashing prices.
Buyers in the big department stores
have been instructed to cancel stand
ing orders wherever possible and hold
off buying further supplies.
st. Louis Stands Pat.
ST. Louis, May 1S.-"The Omaha
situation is purely local 1t is a fight
head, that is all" said j. H. Overman,
manager of the Grand Leader. one OF
st. Louis's largest department stores
in commenting on the recent price
cuts of from 80 to so per cent in Oma-
ha stores.
Reports that the market broke are
erroneous. according to Overman, who
states that woolens and cottons will
undoubtedly be higher this fall. Silks
will possibly be a shade lower.
Overman not only said that the
Grand Leader was not considering any
price reductions but declared emphat-
icallv that none of the large St. Louis
stores were considering such action.
Are Selling More.
Oklahoma City. May 1S.-Cotton:
and woolens will be 8higher this fal
and no hope for early reduction is ir
sight according to the manager o.
Wits, leading clothing store here.
Silk shirts and dresses probably will
be reduced in price, it was stated. a
a small sacrifice in profit. Merchant!
here said they had no intentions o
making price reductions on any large
scale, however. as it could not b'
done. except in a few cases. withou
loss to the stores.
The merchants said they we're sell
ing more clothes this year than last
despite high prices.
Saws Market Broke.
Omaha, Neb.. May 1s.-Departmen
stores "martyrdom" in cutting price
Is and 20 per cent ito aid in reducing
the cost of living" was labeled
"buncomb" today by George Brandeis
head of a store here which announce,
a so per cent reduction.
THE market broke three or fou
weeks ago" Brandeis declared. AN,
other reason given for reduction
bunk he declared. I'VE must clea
our stock in readiness for new prices
The break does not apply to all goods
but nearly all. Cotton and woolel
goods remain high"
Michigan Stores Cut
Saginaw. Mich. May 1S-To "ai
In restoring prices to a normal level
several dealers in mems furnishing
have announced that for Unite,
line they will sell any, except mad
cent less than the current price: