The New York herald., 1921-04-18
Federal Trade Commission
Urges Laws Leaving No
Loophole for Guilty
i to Escape.
TO CUT OFF BROKERS
Data for Forcing Reduc-
tions in Costs to Consumer
Are Furnished President
at His Request.
ACT WITHIN LAW NOW
Wide Distribution Of Market
Information Is Favored as
Cudgel for Public in
Combating Gouger.
sreo,ai Despatch to The New YORK HERALD
New York Herald Bureau.

sreo,di Despatch to The New YORK hERALD.
New York Herald Bureau,
Washington, d. c., April II.
Arbitrary opposition to the normal
operation Of economic laws is RESPONSE
BILE for the failure of the consuming
public to obtain the benefit of price
reductions, which will have to come
before normal conditions are restored,
says the Federal Trade Commission,
after a survey, in letter, made public
tonight by President Harding.
The letter was the basis of Mr.. Har-
ding's declaration in his message to
Congress few days ago that defiation
had failed to meet the proper mark,
and that "open price associations"
were largely responsible. The letter
Is long and contains a detailed discus
sion of the elements which have con-
tributed to the maintenance Of high
prices.
It is the opinion of the commission
that the producer, laborer, manufac-
turer jobber and retailer. should make
up their minds that price reductions
are bound to come and that they will
have to accept unavoidable losses
With this should be provided, the COM
mission believes, satisfactory credit
conditions. which would prevent any
undue financial disorder.
Freight Adds to Cost.
I TRANSPORTATION charges are largely re-
I sponsibie for the failure Of retail quo
tations to reach lhe level that would
seem justified in view of the drop In
\ Wholesale costs, according to the COM
mission. The indispositlon of the re-
taller to take the losses that seem re-
Y Imired also is a factor In keeping up the
lcost of living.
The commission asked for additional
kiegislation to permit 1t to obtain and
Npublish information concerning the
proper prices for basic commodities.
n which has been questioned recently In
various actions now pending In the
courts. Vigorous prosecution under the
Nanti-trnst laws. action on which was
Nsuspended during the war. was recon-
&mended.
The report closes: Normal con-
Editions will be more quickly restored
Eif the producer, laborer. manufacturer,
Niobber and retailer will each share in
the unavoidable loss. and. further. that
any effort by any element to place Its
share OF the common loss on the shoul-
\ GERS of others. and particularly Of the
consumer, can but result in continua-
ltion OF the conditions under which the
.,,pF
Retailers Get Most blame.
The commission says that in gen.
eraI 1t would appear that reduction Of
,,rices is retarded chiefly at the retail
ng stage, and that relief would be re-
Infected back in increased production
which would reduce production cost and
elieve the check upon the manufac-
Eturer. and BY increasing the demand
FOR raw materials would react upon the
producer"
The report notes the influence of Tor
elCn combinations in determining the
lprices OF such commodities as phos-
phate, tobacco and grain, and adds that
among domestic combinations one OF
the newest and most widespread
agencies for affecting markets Is the
open price association
zone purpose of these associations"
the report continues. "nominaily is to
determine uniform cost accounting
methods and to steady the market by
furnishing the supply which II can read
nv absorb These associations collect
nd publish for members figures OF
reduction. production costs, sales and
oxt stx< sx,
ursuance OF plan whereby members
compete among themselves and with
,thers with knowledge of their own
and their competitors production costs
and prices. the available supply and
the demand.
unfortunately the tendency Is mani
tfested by these associations TO conffnc
1.-The information to members and to
hiring about uniform prices and to main
ltein trcm at an articially high level
by curtalling production or supply
Through action which tends strongly to-
ward uniformity because based upon
common Information. but which purports
10 lack the element OF concerted agree
r,ent characteristic OF the combinations
ko,bidden by the Sherman law.
"A fundamental difficulty is that
here is no complete information avail
able to any one with reference to the
proper adjustment OF manufacturers,
wholesalers and retailers prices in any
Industry When Il becomes possible for
any fact finding Governmental body to
determine the cost which n commodity
yepresents at a certain stage, II can be
TouffuurH nm fgeIffH Pane