Evening journal., 1921-04-18
BURDEN Still
ON CONSUMERS
Federal Trade Commission
Reports Reduction Stops
at Retailing Stage
SHOWS EVILS AND
THEIR REMEDIES

WASHINGTON, April 1S.-Legis-
lation to eliminate unnecessary brok-
erage transactions, to facilitate
wide distribution OF information re-
garding market conditions and to
strengthen the powers Of the fed
eral government in its price investi-
cations are recommended by the
Federal Trade Commission in a re-
port on the general industrial sit
. uation. drawn up at the request Of
President Harding made public at
the White House.
open price associations" which
operate within the law to keep their
respective members advised conf
dentally Of one another's price sched-
ules. are accused by the commission
of contributing to the maintenance
q Of unduly high retail prices. II is
suggested that means must be found
10 reduce costs OF necessities, such
as fuel and housing. before other
commodities can come back to mer-
mai.
1T should be said" the repor;
concludes. that following the dis
ordered conditions OF the worlds
affairs. a shrinkage in values is in
evitable and that normal conditions
will be the more quickly restored IL
the producer. the laborer, the man
ufacturer. the jobber and the retail
or will each share at once in the un-
avoidable loss and further that any
effort by any element to place its
share OF the common loss on the
shoulders Of others and particularly
on the consumer, can but result in a
continuation Of the conditions unuer
which the country is now suffering"
Retailer Accused.
Declaring the cost Of commoditie'
to the consumer has not. broadly
speaking. been reduced In proper
proportion to the decline in agricul-
tural and other raw materials, the
commi ission sets forth its belief that
"ln general, it would appear that the
movement toward the reduction o.
prices to the consumer Is retarded
chiefly at the retailing stage. and
that relief at this point would he re-
nected back in increased production.
which would reduce the production
cost and relieve to some extent at
least the check on the manufactur-
er and by increasing the demand for
raw materials. would react on the
producer"
The report also takes note Of the
influence OF the foreign combina-
tions Of capital In determining the
price OF such commodities as phos-
phate, tobacco and grain. and adds
that among domestic combinations
one Of the newest and most wide
spread agencies for affecting mar
kets is the open price association" ."
"A fundamental difficulty at the
present time lies I'm the fact that
there is no complete information
available to anyone with reference
TO the proper adjustment Of manu-
facturers'. wholesalers and retailers
prices In any industry. When it be-
comes possible for any fact-findine
governmental body 10 determine az
any stage the cost which a COM
. modify represents at that stage. &
can be determined whether an ex-
cessive charge r. being placed
thereon"
Causcs Summed Up.
The general causes OF price in
equalities and suggested remedies arc
summed up as follows:
aside from the unfair methods
of competition with which we arc
daily dealing and aside from the i'm
portant elements of transportation
and credit. we are OF the opinion
the following are among the prin-
cipal causes and are indicative and
not necessarily exhaustive OF tn,
subject.
First, the excessive price OF many
basic commodities. prominent amoni
which is COAL which vitally affect,
the cost OF other comm odities. q
say nothing Of the effect on the
health and comfort and on the cos
OF living and buying power Of th'
people.
Second, the existence OF the typi
cal corporate monopolies, and In dis
tInction. agreements in violation o.
the antitrust laws. illustrated IN th'
latter instance by the condition il
another basic commodity. to wit
lumber, which was the subject o
a recent report by this commission
20 the Department Of Justice an,
on which that department is nov
proceeding.
Open Associations.
Third, open Associations. IN man.
cases not yet challenged by the law
yet tending 10 bring about and main
tain unduly high prices.
Fourth, Interference with tn
channels OF trade by distributors
trade associations. particularly b.
activities tending to maintain an un
necessary number OF inefficient reg
ular' dealers. while shutting out ney
dealers seeking to sell at lower price
and especially cooperative purchas
ing and distributing organization O
consumers
Fifth, the conditions with respec
20 foreign combination in the inter
national markets, to which referenc
has already been made.
. aside from the remedies whic
may be afforded by improved trans
portation and credit facilities. W
suggest consideration Of the follow
ing:
Probe Of Necessities.
Il. The passage OF a bill whic
will meet judicial objections to tn
authority of this commission to con
tinue its efforts TO obtain and pub
lish information respecting the own
ership, production. distribution, cos
sales and profits in the basic indus
tries more directly affecting IN
necessities Of life-shelter. clothini
food and fuel-for the informatio
Of Congress and the promotion q
he public welfare.