Evening star., 1920-01-11
WHY JUSTICE THINKS
H. c. |. WILL DROP
Continued from First Page.)

costs are passed along to the gen.
eral public, too frequently with
something added by each branch :.
of the trade.
The principal quarrel that the
Department of Justice has with
the retailer is that his percentage
of profit generally remains the
same, even on commodities that
have doubled and trebled in price.
For example, a certain grade of
shoes in ante-bellum days sold for
50 wholesale. which at a gross
profit of 33 1-3 per cent brought
the retailer $4 per pair. If the
same shoe now costs the retailer
$3.50, and he makes the same per-
centage, the shoe will cost the
wearer SO. In the first instance
the retailers profit was 81, in the
The merchant argues that his
overhead costs have increased 100
per cent. and that increased prices
reQ6ire more capital on which he
frequently must pay interest. The
Department of Justice replies that
the average merchants turnover
is now twice as frequent as be-
fore the war, which should enable
him to shave down his profit
margins materially.
4 \ ~
In one industry which Mr.. Figg
Investigated personally he found
that wages had been increased
five times within eight months. In
some of these instances the in
crease added but 87k cents to the
cost of the article, but the manu-
facturers put the price up $3.50
to the trade. because of unex-
That
dition is now being remedled rap
idly. This occurred in an industry
demanding skilled labor, which
was so scarce that manufacturers
and jobbers bid almost franticalfy
agalnstsE each other to get their
work completed.
Another thing on the part OF
manufacturers that tends to In
crease prices is the practice Or aJir
ticipating labor demands oy quot.
ing prices based on an increase
not yet granted. When this is
done another boost is given all
around, and the consumer foots
the bill, which is not so difficult
if he happens to be one that: is
benefiteds by the increased wage.
Only when every person In 'the
chain from producer to consumer
makes a serious effort to bring
down prices will the movement be
general. says Mr.. Figg, but this is
not so difficult to attain as 1T may
appear, for what the consumer de-
mands and shows a desire to buy
the retailer and the manufacturer
must eventually furnish.
few days ago one of the lead
,;np woolen manufacturers OF the
New England section said that the
demand now was for fine WOODS
instead of for. the coarser goods
that were every bit as servlceaole
and which satisfied the bulk or the
trade before the war. The De-
nartment Of Justice is now nego-
tiating with manufacturers 70 m
d,ice them to return, to former
standards, and in some Instances
fo give more time to the output OF
necessities. rather than non-essen-
tia1s and Injuries. The attitude or
leading Individual manufacturers
and certain associations LEADS gov
ernment officials to DelieVe that
this will be one Of the influences TO
bring down prices during the pres
ent calendar year. ~
Sonoe manufa cturers have notified
Mre Figg that they could sell goods
at lower prices if they could turn
them out in larger quantities. Dut
that market conditions are so un-
certain that they hesitate to enter
into big contracts, for fear that
: changed conditions will leave an
unstable stock on hand. This is
condition that a return to normal
conditions in domestic and foreign
markets will remedy.
X xx
1--WE are depending on the women
TO do much in bringing down
nrices." said Mr.. Figg. Few people
realize that the women Of the
country spend 90 per cent of the
money that goes for necessitles.
When the women of one OF our
big middle western cities grew
tired of paying IS and 80 cents a
dozen for eggs they quit buying
eggs. and in ten days the price
dropped to IS cents. OF course they
cannot quit buying clothes and
food. but when they begin to pa
tronize the merchant that sells the
cheapest, prices in the other stores
are going to tumble-in fact, some
of them are coming down already.
and we believe the movement Is
inst beginning"