The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-04-13
HURRY PRICE DROP
Slashes in Steel Helps Early
Return to Normally.
Big Stride Toward Placing
Business on Sound Basis.
WHOLE LIST STILL HIGH
Foods Yet Fifty-Eight Per Cent
Above 1918 Level.
Middlemen Are Levying Toll of
TWenty-0ne Per Cent.
WHOLE LIST STILL HIGH

Washington, April 13.-Middlemen
now are levying a toll of 81 per cent
on the value of all foods and most
necessities used thruout the entire
United States, according to price data
in possession of Secretary of Labor
Davis today.
Facts collected by Davis's depart
ment emphasize the exposure made
by President Harding in his message
to congress that drops in prices to
consumers were slower than drops in
prices of basic materials. Davis is
ready to lay his information before
congress if an investigation is under
taken as requested by the president.
Prices Up So Per Cent.
Davis's data show that the con-
sumner is paying a level of about 5S
per cent above the 1913 prices for
such things as meats, eggs. butter.
coffee. tea, lard. flour, milk and
cheese. The wholesale dealer is pay
ing about SO per cent above the 1913
level for these things. The farmer
gets an average but 20 per cent
higher than in 1913.
Reconsisnments, high freight rates
and the open price system of price
fixing are responsible for the discrep-
ancy between the prices paid by the
consumer and those received by the
producer, according to a study of the
problem made for Harding by the fed
eral trade commission. Reconsign-
ment is the practice of re-selling food
and other commodities in the rail-
road car before they are unloaded al
the point to which billed. In one in
vestigatiou, the trade commission
found that a car of coal was resold
twelve times between the mine and
the wholesaler Each seller boosted
the price to make a profit.
Steel Drop Will Help.
Chicago, April 1S.-Reduction OF
steel prices is the first big move
toward establishment of business
on a sound, economic basis, Chicago
bankers said today.
THE commanding Importance ol
the United States Steel corporation:
position will make its action beneficial
as an example to industry" declared
D. w. Forgan, president of the Ma
tional City bank.
Forgan believes that a new bash
will be found for prices, wages 'ant
profits ~
The slash in steel costs means pro.
ducers of other basic products will fol
low suit, in Forgan's opinion.
''The steel company's action shoult
have a favorable influence on build
ing" Forgan said. "Other material!
must come down and if labor will take
its share of the reduction, believe
large amount of building awaiting
normal costs will go on
Forgan said a vast amount of none!
for building purposes is available thru
out the United States.
Bankers will be more willing thar
ever to turn the money loose" if con
struction costs merely represent In
trinsic value, bankers declared.
Hurry Price Decline.
New York, April 13.-The decline
in prices was given impetus today b!
announcement by the United State:
Steel corporation of a reduction il
steel prices effective April 21.
1t was generally expected the stee
corporation would soon announce ;
reduction in wages to follow the pric'
cut but there was no confirmation o
this, and z. H. Gray, chairman of tn
corporation, refused to discuss it.
J The slash in steel prices was neces
sary, it is understood, in order to re
! vive trade and halt a buyers strike
A drop in costs of building material
/ and consequent increase in con
| struction work is looked for as
| result.
! The reductions ranged from Sf.5
| to 50 Ton for various kinds of steel
up to as much as SIS a ton for til
plate