New-York tribune., 1921-12-23
Federal Inquiry Begun OH
Cost of Food, Fuel and
Clothing TO Consumers
in All Parts of Nation
Couging Declared
Widely Practiced
Wholesale Rates To BE
Made Public to Bare
Profits Of Storekeepers

WASHINGTON, Dec. 22.-Federal in
vcstigation Of retail prices charged in
various parts of the country for food
fuel, shoes and clothing was initiated
to-day by Attorney General Daughcrty
He gave orders to Director Burns of
the bureau of investigation of the De-
partmcnt of Justice to assign u force
of men ut once TO the duty Of obtain
ing data on retail prices in different
localities.
Mr.. Daugherty declared that prices
high and that in some instances the
profits of retailers were "unconscion-
able" 1t would never he possible, he
asserted, to get prices down to the pre-
war level, but with wages lowered and
the costs Of foodstuffs reduced he was
determined to learn whether the pres
ent BADLY proportioned" retail prices
should be maintained.
Mr.. Burns was instructed to put his
men TO work simultaneously to obtain
the variations in different localities in
the retail prices of general foodstuffs 8,
such as meats, provisions, beans, bread
and butter, fuel, shoes and clothing,
and to make schedules Of the compare
tive prices.
Inquiry To Be Rapid
Reports also will be gathered on the
Wholesale prices of wheat. beef and
meats OF all kinds, in order, Mr.. Daugh-
erty explained, that comparisons might
be made of the costs of these COM
modities with the prices charged by
the butchers and grocers. The depart
ment's agents are to be instructed to
do their work carefully, but as rapidly
AS possible.
Action to remedy price conditions,
Mr.. Daugherty declared, would be
taken through several channels. In the
main, he said, the situation was a local
one and the states would be asked TO
do as much as they could to solve it
with Federal cooperation. Secretary
Hoover, he added, would be invited to
join with the Department Of Justice
in it's effort to lower prices, while it
was believed that the publication of the
comparative Wholesale and retail prices
would do much TO remedy high prices
by conveying to the housewives of the
country accurate knowledge of actual
conditions.
Organizations of retailers in differ
rent parts of the country were blamed
by Mr.. Daugherty for high prices.
These associations, he declared, were
formed "by smart men who sold
scheme to defeat the laws Of the coun-
try by perfecting an organization fer
fixing prices which concealed its real
purpose under declaration of a de-
Sire to help competition"
The department, he stated, intends
to 'sget these smart fellows" while at
the same time realizing that many in
nocent merchants had been imposed
upon by them.
Must Not Kill Competition
Mr.. Daugherty declared himself as
t1nnuaIifiedly in favor of trade organi-
cations which confined their operations
to improving their services to the pub
lie, but, he asserted, they would not be
allowed to fix prices or apportion ter
ritory among their members, thus
stfing competition.
Trade associations generally, he said,
were showing q commendable willing
ness to confine their activities to the
lines suggested by the Department OF
Justice as in conformity with the law,
but where the departments advice had
been disregarded it had been neces-
sary TO institute proceedings under the
Sherman antitrust act.
The decision Of the Supreme Court
last Monday in the hardwood case,
which defined the general scope of ac-
tivities of trade associations, he added,
would do much to remove uncertainty
as to the exact application of the law
to the activities OF trade associations,
and would enable accurate definition Of
what practices were legal and which
ilIeoai