Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-06-07
SAYS RETAILERS ARE
NOT PROFITE:E:RING
President of Retail CIothiers' AS
sociation Defends Them In
Convention Address
(Bv Associated Press)

L. laws, OF frankfort, address
ing the Kentucky Association Of
Retail Clothiers, in annual session
here today, declared that close in
vestigation showed the retailer
who had on hand merchandise at
high prices had long since for
gotten cost and today is selling
these goods at far less than cost,
in many instances at even less
than replacement prices"
1T is no longer question of
what an article is worth, he add
ed, but how much we can sell it
for
Louisville, Ky, June 7-Tak-
ing issue with the Federal Trade
Commission report that recently
charged that retailers were hold.
ing back prosperity by refusing
to reduce prices in keeping with
reductions by wholesalers, Ellis
Malone, Franklin, Ky, president
Of the Kentucky Retail Clothiers
Association in his annual address
before the convention of the or
ganization here presented figures
which he said showed that. the
retailers were not making undue
profits. He declares that the re-
tailers had reduced their prices in
keeping with reductions to them.
He warned the retailers that
they must not expect as large 4
volume Of business next fall as in
past years and asserted that
freight rates were too high and a
factor in high prices and that or
ganized labor must be willing to
take a reduction if living costs
are to come down. The present
prices of farm products, he as
serted, make it impossible for the
farmers, who represent 80 to 40
per cent of the buying power Of
the country, TO buy as he would
if prices were lower and nearer
to what they feel IS just. He ex-
pressed the belief that the cloth
ing workers would make more
money at $50 to SIS week for
a season of 40 to As weeks than
obey would for Is to 80 weeks at
$40 to SIS week.
Declaring that "a more mali
cious and unjust accusation has
never been brought against any
set of men that has been charged
against the retail clothiers of this
country and SO freely circulated
through the press" than charges
that they are profteering. He
declared that he could not say
why or by whom this propagan-
da has been put forth" He add
ed, however, that Invested CAPT
tai on the one hand desires to
maintain its dividends and at the
same time public sympathy, Or
ganized labor desires to maintain
its present scale of wages, based
on the high cost of living. The
retailer is the natural and conve-
nient target that suits the pur-
pose Of both interests
The figures presented by. Mr..
Malone to demonstrate that the
clothing retailer is not pro6teer-
ing, he said, are based on a ques-
tionaire he sent out to merchants
throughout the state. They show
that in the spring OF 1920 cloth
ing retailers made from q and al
fraction to "A percent gross profit
and in the spring Of 1921 from
Is and a fraction to % percent.
For the fall of 1920, he said, the
gross profit ranged from q and
traction percent to "A percent. |
The report, he added, does not
contain every retail c1othier in.
he state but expressed the belief
hat if all had been reached the
-esult would rot have been far
liflerent. |
The compiled reports FROM
merchants reached by the ques-I
ionaire he SAID "show the fol-
owing facts: On mems high
trade suits for the spring of 1920l
he average cost was $40.85.
They were sold at an average
rice of $3.50, which would be
4 per cent gross profit on the
ale price and for the fall of 1920
he average wholesale cost onl
he same grade of suits was
444.20, which were sold at an av-
rage price of $5825, still "a and |
fraction percent gross profit on
he sale price; and for the spring
& 1901 t1,a 49,. rrr>< = ~ ,1>tf, u