Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1920-10-06

Blamed for
HighPrices
Representatives of Business
Interests Confer VII Fed.
eral Trade Co, ~c... in
Formr' W..

Was ~ ~ s.-Partial re-
spor "a .gh prices was laid
>factureN Nso>saarantee against price de-
cline bysthose who protested against
the custom at the hearing before the
Federal Trade commission. More
:ilan 200 spokesmen for business in
terests were present to advise with
the commission in formulating
policy.
The statement that prices would
have gone down soon after the armi-
stice in mary lines had the price
guarantee practice been unknown i'll
commerce was brought out in an
swer to ques ions by Chairman Muir
dock, who asked for opinions on that
phase. Without exception, opponents
of the system declared their belief
had been, confirmed by breaks in
commodities where the practice was
not employed They cited the sugar
and silk markets as typical.
]. A. Goldsmith, representing the
Silk Association of America, said the
guarantee could be construed in no
other light than as means of main
taining "a generally high level OF
prices and mitigating against any re-
duction which would have followed
natural operation of the law of sup
ply and demand"
Silk Prices Decline.
Silk prices, he said, had declined
which would have been impossible
SO per cent in the last six months,
had the wholesalers been guaranteed
against loss by the manufacturers.
Il would say further" he contni-
red, that the guarantee against de-
cline not only tends to hold up
prices, but means that plants will be
shut and industry stagnated in order
that the guarantee manufacturer will
not have to dig in his pocket and
repay the wholesaler or ather pur-
chasers. The plants are shut down
and the demand remains, so prices
stay high y
What about holding up artificial
prices, like war prices, and would
they have been reduced except for
the price guaranteed" Mr.. Murdock
inquired. .-
"Unhesitatingly l would say they
would have fallen long ago." Mr..
Goldsmith replied. II would not at
tempt to say to what extent the
guarantee has maintained the prices,
but it certainly has held them a
much longer time than had the old
law of supply and demand been per-
ritted to operate"
To Hear Other Side.
Only two speakers defended the
practice, but their sides of the ques-
ton will be heard fully tomorrow.
R. U. Delejenha, New York. repre-
serting, the Natiof.al Preservers and
Fruit Producers association, voiced
approval of the custom, saying its
benefits more than offset any i'll
effects depicted by opponents.
L. F. Boffey of the National AS
sociation of Purchasing Agents, held
that no legimate attack could be
made on the guarantee system on
ethical grounds as the law estab-
lished the right of citizen to en-
play trade methods Of any kind so
long as they did not tend TO mono
poly or discrimination.
That the practice did tend to-
and discriminatory was ass
serted by G. D. McIlvain' of the
Tin Plate Manufacturers associa-
ton. He orgued that the guarantee
given by the "big' manufacturers
could not be met in most cases by
little producers, who were COM
PEELED either to sell out or close up
practically bankrupt"
Julian Armstrong of the bureau of
related industries IS charged that the
guarantee custom Encouraging
speculation caused overstocking,
stifled competition and inveriably
leads to rebating."