Arizona republican., 1921-02-13
s5OO,0OO LOSS P0CkE TED BY
 LOCAL DEALERS
Phoenix Merchants, In Or der To Keep Pace With Lowering Prices, Are Forced To Make Big "Charge-Of"

Phoenix merchants are pocSeting a loss of approximately S1,000,000 in or der to keep pace with the downward trend of prices, according to estimates yesterday by some of the leading busi- ness men of the city. Deflation has been accomplished in practically all lines that say and to such an ex- tent that the public has been buying many things in recent weeks at figures actually lower than replacement cost. In some lines, notably cotton goods, silks. shoes and other finished products, the bottom has been reached and quo tations are gradually stiffening again, the merchants said
 Hats, shoes, shirts, silk stockings. suits, eloaks, furniture, sheeting, blankets and q wide variety of other articles of general merchandise have been on the toboggan since the wave of extravaganza in this country began to recede early last fall. Yesterday, many local business men stated that for weeks they have been marking down retail costs of everything in their stores
 to meet the price at which new bills Of goods can be sold.
 Biz Stores Lose Much
 Charles Korrick of korrick Bres. says that the amount charged off by that concern since price deflation began will | total at least $10oo00 He says this represents actual loss to the firm be- cause, in order to meet prices on new goods. 1t had to cut it's goods below
 actual cost to that extent. He declares
 that practically all other merchants in
 the city followed the same plan. l 1. Diamond of the Boston store said his loss would run from 25 to 50 per cent He will be unable to estimate his actual loss in dollars and cents, he said,
 until inventory is completed. Reduc- tions have been under way at the Bos- ton store for nearly a year, he said. 1 re1ehan tf1a h0f- tom price and some passed that sta | ton weeks ago. The market for cotton
 and silk goods, it was announced. has
 shown a strengthening tendency during the past few weeks.
 Vic Hanny of Hanny's store points to the fact that his store has been offer ing a standard brand of shirts at prices I far below what they were actually bought for and that practically every thing in stock has been marked down I to conform to the prices quoted on | goods. which are being bought for re- placements. Our charge off on shirts alone amounts to approximately $5,000, . MT. Hanny said.
 1T think the public ought to be told that there is such a thing as carrying a buyers strike too Tar. I'm fairls certain that lot of people have put off buying merchandise until the low marks have been passed and conse- quently they will probably have to pay more for some of these articles during
 the coming months Stores must sell goods if factories are to be kept run ming and salespeople kept busy. Oth-
 erwise, production will stop and the . goods on hand will be marked higher because of scarcity"
 Clearance sales and general price re-
 ductions will result in a loss of at
 least $10.0o0 to the Switzer Style Shop. Walter SwitZer, manager, announced last night.
 Our reductions have varied from 25 to 60 per cent during the readjustment period. These articles have been dis posed of at prices actually below re placement costs, to say nothing of the purchase price when they were placed in stock
 'sWe have made an earnest endeavor to charge off every penny that replace nent prices would justify and, in many instances, have sold merchandise at less. than rock bottom prices. Upward Trend Now Market conditions are showing an upward trend at the present time, es- peciaHy cotton goods and silks. 1t is ! my belief that the bottom has been l reached on practically all kings of mer- chandise-and passed on some articles. This is due, primarily, to conditions !, of the markets. There is a scarcity of many articles at this time. Immediate ly deliveries are not to be had, with a !. result that this scarcity reflects on ] quotations. Strengthening of prices comes in the trend of events, governed < by the law of supply and demand.'' } Prices are now down to fairly T normal basis" said MT. Korrick. Tn
 many instances, retail prices are actu- s ally below the retail cost of goods in 1914"