The New York herald., 1921-04-14
Prepared to Show Middlemen
Add 21 Per Cent. to
Producing Cost.
ANXIOUS OVER HOUSING
Sees Shortage as Barrier to
Mediation in Labor
Struggle.
Special Despatcr THE sew SosN HERALD
New York Herald Bureau,
Washington, u. c., April Is.


Secretary of Labor Davis is ready
70 lay before Congress great mass
OF information on price increases when
special committee is named TO in
vestigate living costs as recommended
by President Harding in mis- message
to the special session
Mr.. Davis now has available reports
indicating that approximately q per
cent. is added TO the cost OF food and
necessities somewhere between the pro-
ducer and the wholesale dealer, or ap-
proximately $4,000 900 on food bill
of SIS. 900 100000 year. according to one
estimate.
The data collected by Mr.. Davis's de-
partment indicates also that the aver
age increase over the pre-war margin
on retail food is about per cent. Re-
ports Of the Labor Department show
the consumer is paying an average Of
6s per cent. more than in pre-war days
for food, while the wholesale price IS
period. The popular belief is and has
been that retail dealers were making
enormous profits.
Farmers are receiving an average Of
20 per cent more than in pre-war days,
leaving a discrepancy OF 81 per cent. be-
rween the level paid to wholesalers and
that paid to the farmers. Middlemen
are believed to be absorbing the larger
proportion Of margin between cost and
selling price. Although the price Of
basis commodities to the producer has
been considerably reduced. the consum-
ing public has yet received only partial
benefit from the defation. the President
emphasized in his message.
Wool. leather. rubber. live stock.
poultry. dairy products and cereals In
many cases are bringing their producers
q return even lower than in pre-war
days, while prices have not gone down
proportionately to the consumers for
shoes. meats. eggs and butter, bread and
the like. Clothing has recorded the
largest retail price drop. but it is re-
called that retail clothing prices during
the war scared more than 200 per cent.
Secretary Davis believes rents should
be reduced as tho biggest factor in the
general cost of living. He said to-day
that the failure of the country to make
much of dent in the nationwide hous-
ing shortage is the greatest barrier to
mediation of labor struggles and the
bringing of peace in the industrial world
His reports. indicate that the increase
in rents during the war was smaller in
percentage than in most necessities.
The data collected by his department
covers monthly reports Of prtcec of rep
resentative articles Of food, clothing.
drugs household furnishings in more
than fifty large cities in both retail and
wholesale markets.
The most recent reports show that the
percentage by which retail price quo
tations exceed the pre-war rates are as
follows:
Sirloin steak. 81 per cent advance on
the pre-war price: round steak. 90 per
cent. rib roast, 4s per cent. plate beef.
20 per cent. pork chops, So per cent !:
bacon, 66 per cent; ham. 10 per cent. !;
lard, 81 per cent. hens, 1o1 per cent ;
eggs, 80 per cent. butter, 4S per cent;
cheese. II per cent. milk, 73 per cent
bread. SO per cent rice, Fl per cent ;
potatoes, 63 per cent, and tea, 81 per
cent.