New-York tribune., 1921-04-18
Retailers Hold
Prices Up, Says
Federal Board
Associations Keeping Mem
bers Advised of Another's
Schedules Also Accused
bv Tra d e Commission
Stronger Laws Urged
Wider Distribution of In
formation Regarding the
Market Conditions Asked

WASHINGTON, April 17.-Legisla-
ion to eliminate unnecessary broker
age transactions, to facilitate wide
distribution OF information regarding
market conditions and to strengthen
the powers of the Federal government
in it's price Investigations is recon-
mended by the Federal Trade Commits
sion in report on the general indus
trial situation, drawn up at the re-
quest Of President Harding and made
public tonight at the White House.
"0pen price associations" which op-
crate within the law to keep their re-
spective members advised confiden-
tally of one another's price schedules.
are accused by the commission of con-
tributing to the maintenance of un-
duly high retail prices. 1t is suggested
that means must be found to reduce
costs of necessaries, such as fuel and
housing, before other commo odities can
come back to normal.
at should be said" the report con-
cludes, that following the disordered
condition Of the worlds affairs
shrinkage in values is inevitable. and
that normal conditions will be the
more quickly restored if the producer,
the laborer. the manufacturer, the Job
Der and the retailer will each share at
once in the unavoidable loss; and,
further, that any effort by any element
10 place its share of the common loss
on the shoulders of others. and par-
ticularly on the consumer, can only re-
suit in a continuation of the conditions
under which the country is now suf-
fering.'
Increased Production Necessary
Declaring that the cost of commodities
to the consumer has not, broadly speak
ing, been reduced in proper proportion
10 the decline in agricultural and other
raw materials, the commission sets forth
It's belief that "in general, it would ap
pear that the movement toward the re-
duction of prices to the consumer is re-
tarded chiefly at the retailing stage, and
that relief at this point would be re-
aected back in increased production,
which would reduce the production cost
and relieve to some extent at least the
check upon the manufacturer, and by
increasing the demand for raw materials
would reacr upon the producer
The report also takes note of the in
auence of foreign combinations of capi-
tai IN determining the price of such
commodities as phosphate, tobacco and
grain, and adds that among domestic
combinations one of the newest and
most widespread agencies for affecting
markets IS the "open price association"
One OF the purposes OF these associ-
atoms, the report continues, "nomi-
aaly is to determine uniform cost ac-
eountlng methods and to steady the mar
seI py furnishing the supply which it
can readily absorb. These associations
nllect and publish for the benefit of
their members figures of production
prductlon costs, sales and sales prices
and orders and stocks, in pursuance of
plan whereby the members Of such
associations are to compete among them |
selves and with others with knowledpe
q their own and their competitors pro
duction costs and prices, the available |
supply and the demand.
Wider Distribution of Data
THE collection and public dissent
nation Of such statistical data might
maze the operation of such associa-
ucns OF benefit to the producer and
.ne consumer alike, but unfortunately |
sne tendency is here manifested to con-
une the information to members and to
orng about uniform prices, and to
maintain them at an artifciallv high |
level By curtailing production or sup
Ply through action which tends strong
y toward uniformity because based |
upon common information, but which /
purports to lack the element of con-
eerted agreement characteristic of the
combinations forbidden by the Sher-
man law.
"A fundam entail difficulty at the
present time lies in the fact that there |
is no complete information available to |
any one with reference to the proner
adjustment Of manufacturers, whole |
saiers' and retailers prices in any in
oussry. When it becomes possible for
any fact-hnding governmental bodv to !
determine at any stage the cost which !
a commodity represents at that stage,
can be determined whether an ex- (