Perth Amboy evening news., 1921-10-18

Aof1l4N11OL OCls o 'NSt
demands an editor out in the corn
belt, does the retailer charge from
thirty-five to forty cents a pound
for pork chops when hogs cost him
only six or seven cents?'
He is one If a chorus singing diff
ferent words to the same tune. A
man down in Oklahoma wants to
know why it is impossible to tote
enough hides across the street on
his back to buy a pair of shoes. A
man in Georgia wants to know why
cotton enough to make a tent won't
buy an undershirt. And a farmer
in Maryland asks why apples, such
as he fed to his hogs because it
would not pay to haul them to mar
ket, sell for five cents each on the
fruit stands.
All of these questions have been
asked many many times. They have
also been loudly answered with h
assertion that retail prices are too
| high, which is of course merely beg
cling the question. Sometimes it is
added that the retailer is. a profteer,
which is generally not true and GER
tainly sheds no light on the situa-
ton.
When the editors query was laid
before certain marketing experts in
the government service, it was
learned that the question is a good
deal more complicated than those
who blame the retailer and let 1t
go at that, ever imagined. The De-
partment of Agriculture is making
a study OF the retail prices of farm
products in all of the principal
American cities. 1t is going to ma
out Just why these prices are so in
.ls..+.Ir htnH aud univ fha farmer
gets such a small share of the large
price that the consumer pays. The
men do not care to be
quoted, nor to make any extensive
comment, until this investigation has
been completed. But in the mean
time they throw out a few hints.
In the first place, they say, don't
be too quick to blame the retailer.
Retail prices, probably are too high,
but they are not as much too hlgh
as you may think. The retailer mas
been facing a dull market for a long
time now. His great need is to turn
over his stock. 1t is extremely prop.
able that he would reduce prices IL
he could afford to do so, in order
TO stimulate trade. In many cases,
Of course, he has done so. The pa
pers are full of bargain sale adVer-
tisements. Yet the average of retail
| prices remains high.
Cost of Retailing High.
This, say the experts, is partly be-
cause the cost of retailing. as a bust
ness operation. is high. out of the
thirty-hve cents thai you pay FOR
pork chops, the retailer must pay,
not only the price of the pork at
wholesale, but also the rent of his
store, the cost of the ice on which
he kept the pork, the wages OF the
man who cut it and sold it to you,
the paper in which it was wrapped,
and the upkeep of the vehicle IN
which it was delivered.
The experts do not seem TO know
exactly what percentage OF the cost
OF those pork chops is represented
by each of these elements In It's
transfer. That is probably one OF
the things their investigation will re-
veal. But they think that the price
paid for the pork is less than half OF
the total cost of getting 1t from
wholesaler to consumer. And all OF
these factors in the operation have
risen in cost. Rent, wages, Ice, pa
per. gasoline-no one needs TO De
told that all OF these things are from
10 to 100 per cent. higher than they
were in 1913.
Remember, too. that with many
persons out of work and money
tight. the retailer is doing a smaller
than normal business. But he still
navs the same rent and he probably
has to maintain about the same
staff. His reduction in expenses
in a word, is not in proportion 10 hl'
reduction in business. That means
that the cost of making each saIt
is higher than it would be II M
were doing a big business. If th'
butcher only sold pound or porf
chops in a day.. he would nave u
get $40 to SIS for it in t'
break even. or
ing retailer is probably a rare pnr.
lust now. A few OF them are Pc
haps making large prohts py sllch
ing TO wartime prices; put man.
more OF them are only hoping .
make expenses until better time
come along.
The difficulty, explains an expert
lies in the fact that retail prices
wages and farmers earnings are al
on different levels. In order ina
onr clumsy Industrial system ma
work at all, they must be on abou
the same level.
Farmer Felt Drop First.
When prices sbegan to drop, tn
drop fell on the farmer first. WIT
unsold stocks of foodstuffs on hand
2 the buyers refused to give him
high price for what he raised. Blu
he had to sell. SO he took a loV