Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1921-04-22
PROBLEM OF PRICES
Trade Commission Makes Important
Report.
TOO MANY. BROKERAGE TRANSACTIONS

Open Price Associations and Other
Combinations are Suspected Of Re-
sPonsibiIity for Much of the Trouble.
Legislative Recommendations
Washington, April 17.-Legis,ation to
eliminate unnecessary brokerage trans
actions, to facilitate a wide distribu-
tion of information regarding market
conditions and TO strengthen the
powers of the federal government in
its price investigations is recommend
ed by the Federal Trade Commission
in a report on the general Industrial
situation, drawn up at the request Of
President Harding and made public
tonight at the White House.
open price associations" which op-
crate within the law to keep their
respective members advised confiden-
TALLY of one anothers price schedules,
are accused by the commission of con-
tributing to the maintenance of un-
duly high retail prices. II is sUg-
gcsted that means must be found to
reduce costs Of necessities, such as
fuel and housing, before other COM
nnditics can come back to normal.
1T should be said" the report con-
cudes. that following the disordercd
condition Of the worlds affairs, a
shrinkagc in values is inevitable and
that normal conditions will be the more
quickly restored if the producer. the
lahorcr. the manufactures. the jobber
and the retailer will each share at
once in the unavoidable loss, and fur
thcr, that any effort by any element to
place its share Of the common loss on
the shoulders OF others, and particu-
larly of the consumer, can but result
in continuation Of the conditions
under which the country is now suf-
fcrinS.
Consumers Cost Too High.
Declaring that the cost of cCmmod-
tiles to ehe consumer has not. broadly
speaking, been reduced in proper pro-
portion to the decline in agricultural
and other raw materials, the ccmmis-
SION sets forth it's belief that, "in gem
e:al it would appear that the move
ment toward the reduction of prices to
The consumer is'rctarded chiefly at the
retailing stage, and that relief at this
point would be reflected back in in
cnsedrroduct!un, which would re-
durc the production cost and relieve to
some extent at least The check up ON
the manufacturers and by increasing
the drrand for raw materials would
react upon the producer"
The report also takes note of the
influence Of foreign combinations of
capital in determining the price o.
such commodities as phosphate, to-
baccu and grain and adds that among
domestic combinations. one of the
newest and mu3t widespread agencies
for affecting markets is the "open
price associations"
Trust Within the Law.
cations" the report continues. "nolni-
naliy is to determine uniform cost ac-
counting methods and To steady the
market hy furnishing the supply which
/, can readily absorb. These assncia-
tions collect and publish for the bcnc-
fit Of their members prices of prudur-
ton. production costs, sales ana sl'cs
prices ard orders and stocks. in pur-
Slancc Of Il plan whereby the members
TT such associations arc to compete
among themselves and with others
with knowledge ur their own and their
cunpcliturS' production costs ara
prices. the available supply and the
demand. The collection and public dis
sCminatinn Of Sach statistical data
might make the operation OF such as
suri;itinnS of benefit 10 the producer
and III" consumer alike, but, unfortu-
naIrly. the tendency is here nan!-
Tested to cunfnr Tic Information to
numbers aTd In bring about uniform
prices and to maintain 1hCm 1T IN ar
t:fciaIy high level hr rHrlailnE pro-
dllrlinn or suppl? through action
which lends strongly toward uniform
ity because, based upon common in
formation. hut which purports to lack
The element uf concerted HgrcrlncEl
characteristic III the combinations for
bidlcm by the Sherman law ...
~ fundamental difficulty At tn"
present tim. lies in the fact that there
is NJ complete information available t"
anyone with reference To the proper
adjustment OF manufacturers. wh2ir-
81, !ci's' and retailers prices in hn% IN
distry. WAen i; becomes possible lnr
any fac; finding governmental body To
determine al any stage the COS! which
Il commodity repre- S@utS III that stage,
il can be determined whether an eX-
:cssivr ch;,fyy. is being placed thereon.
The general causes "t pr!c" incquai-
itirS and suggested remedies are
summed up is follows:
Causes Arc Cited.
aside from the unfair m"ihnds at
cnmnctitiua with which Wc are daily
rnntrnding and aside from the i'm
purtInt clements Of transportation and
credit. we arc of the opinion that ih"