Evening star., 1921-04-18
M0N0PO[|ES HELD
HIGH PRICE CAUSE
Federal Trade Commission
Places Blame on "0pen
Price Associations"
SHARING OF LOSS URGED
Conditions Will Continue, Says Re-
port, Unless All Concerned Will
Divide Cost Burden.

Recommendation for legislation to
eliminate unnecessary brokerage tran
SactionS, to facilitate a wide diStrlbu-
tion of information regarding market
conditions and to strengthen the pow
erS of the federal government IN its
price Investigations. Is made by the
Federal Trade Board in a report on
the general industrial situation. taken
at the request of President Harding,
and made public last night at the
White House.
open price associations" which
operate within the law to keep their
respective members confidentially ad-
vised of one another's price schedules.
are accused by the commission of con-
tributing to the maintenance of un-
duly high retail prices. 1t is sug-
geSted that means must be found to
reduce costs of necessities, such as
fuel and housing, before other COM
modities can come back to normal.
No ProportiOnate Drop.
Asserting that the cost of commodi-
ties to the consumer has not. broadly
speaking. been reduced in proper pro-
portion to the decline in agricultural
and other raw material, the commits
sion sets forth it's belief that lin gen.
eral, it would appear that the move
ment toward the reduction Of prices
to the consumer is retarded chiefly at
this point would be reflected in in
creased production, which would re-
duce the production cost and relieve TO
some extent at least the check upon
the manufacturer. and by increasing
the demand for raw materials would
react on the producer.
"a fundamental difficulty at the pres
ent times lies in the fact that there is
no complete information available to
any one with reference to the proper ad-
justment of manufacturers, wholeSal-
erS' and retailers prices in any indus
try" the report continues. when il
becomes possible for any fact-finding
governmental body to determine at any
stage the cost which a commodity rep
resents at that stage, 1t can be deter
mined whether an excessive charge is
being placed thereon.
The general causes of price inequali-
ties and suggested remedies are summed
Up as follows:
First, the excessive price of many
basic commodities. prominent among
which is coal, which vitality affects the
cost of other commodities.
Second, the existence of the typical
corporate monopolies. and in distinc-
ton, agreements in violation of the
antitrust laws, illustrated in the lat
ter instance by the condition in an
other basic commodity, lumber.
Third, open price associations, in
many cases not yet challenged by the
law.
"Fourth. interference with the chan
nels of trade by distributors trade
associations. particularly by activities
tending to maintain an unnecessary
number of inefficient regular deal
ers, while shutting out new dealers
seeking to sell at lower prices, and
especially cooperative purchasing and
distributing organizations of consum- =
ers.
Fifth, the condition with respect
to foreign combinations in the inter
national market, to which reference
has already been made"
TT should be said" the report con-
c1udes, that following the disordered
condition of the worlds affairs,
shrinkage in values is inevitable and
that normal conditions will be the
more quickly restored if the producer,