New-York tribune., 1922-06-25
Merchants Ask
McCumbcr to
Retract Charge
National Retailers Associa-
ton Denies Press Control
Through Advertising. as
Alleged in Senate Debate
Disprove Profieering
Figures From Unbiased
Source Show Small Margin
for Big Stores of Country

for Big Stores OF Country
Defending the retail merchants OF
the country against the charge OF
prohteering made by Senator Porter J.
McCumber and demanding that he
either prove or withdraw his assertion
that the newspapers are "venally sub
servient TO advertisers" the executive
committee Of the National Retail Dry
Goods Association. 200 Fifth Avenue
ha. addressed an open letter TO the
Senator. II was made public yester-
day.
In answering the attack made on the
newspapers and retail merchants IN
connection with the tariff bill now
nending before the Senate, the com
mittee says emphatieally that the
charge against the press OF the coun-
try "is untrue and unsupportable and
unworthy Of the chairman OF com
mittee as important and responsible as
Is the Senate Finance Committee In
discussing the proateering charge the
latter saws that "thc truth about the
so.ealled prohteering be department
stores has been nuthoritively proved to
be at complete variance with Jour
assertion"
Merchants Defend Press
The letter reads in part:
"Thc answer 20 charge No. J, in ehect
that the great metropolitan newspa-
pers are venal and corrupt. should
more properly come from ;he newspa-
ncrs. but we desire TO record our be-
lief that this charge IS untrue and un-
surportable and unworthy Of tie
chairman Of a committee as important
and responsible as is the Senate
Finance Committee. For the good ~
our American institutions this asser-
tion should either be proved or VITA
drawn.
ave consider 10 fitting that tho Ma
tional Dry Goods Association should
answer your second charge, that OF
'proAteering. as our membership IN
cludes about 1000 stores. both large
and small. situated from the Atlantic
"a the Pacific. from tho Canadian Dor
der 10 the RIO Grandc, doing q net
business Cf moro than S2,OOOO0O 600.
We shall refute this charge not by
r,ere assertion, but By the actunl pub
lisbed figures. determined by the in
yestieations OF one responsible, inde-
nondent organization and By three
important government commissions
and agencies.
"The truth about the so-ealled 'proA-
,eering' by department torres has been
authoritativcly proved 20 be at com
plefe variance with your assertions. In
1920 the United States Department Of
Justice completed. under tho Lever
act. searching investigation into the
charges Of retail 'prohteeTlne 80 wide
ly circulated in the press al that time.
/ Their agents visited practically every
big store in this country. called for
/ invoices and statistics Of every sort,
which were freely supplied by tho
stores To the best of our knowledge
and belief out OF thousands Of de-
partment stores investigated proitccr-
Ing was found in practically no cases.
Shows Small Profits
at is interesting, in view OF your
charges that the newspapers are con-
trolleG by their large advertisers. 70
note that for a period of six or eight
months the press Of this country at
that time carried on the hue and cry
against the retail stores. although The
members Of our trade we're large users
Of their advertising columns. The IN
vestigation by tho Department Of JUS
tice convinced the press that the
charges were unfounded. ana the cam
paign Was not only in fairness discor-
tinued but hundreds Of papers apollo
giZed editorislly for the publicity
which the newspapers had given TO the
unwarranted and unsupportable charge
Of 'profteering.
The bureau OF business research
Of the graduate school Of business ad-
ministration OF Harvard University
conducted an inquiry into the cost Of
operation in retail dry goods and de-
partment stores throughout the United
States. We quote from their report:
Profit and loss statements for the year
1920 were obtained from 305 stores,
located IN thir'y-ninc statos, with az
gregate net sales Of $685.. $4,000. vary
ing per store from 81 900 20 800 ,O0O,-
600. The average net profit was
shown 10 be .olS per cent Of sales In
other words out Of each 81 Of sales
$40 cents was retained as profit.
Certainly a net profit OF $40 cents
would not be regarded rs satisfactory
by even the most bitter critic Of the
retailer.
"The year 1918 was a moro profitable
year for retailers as the published
figures show. These figures were
compiled for the United States De-
partment Of Justice by a committee
OF store controllers representing the
National Retail Dry Goods Associs-
tion. They covered 100 large stores
doing an aggregate business of S203.-
45l. 900. from $4,000 20 $4,000 900
each, and showed an average net profit
Of .0571 per cent before Federal taxes.
"Thc National Retail Dry Goods As
soeiation is opposed 20 the proposed
tariff because its rates have not been
constructed in scientific. nonpartisan.
non-political manner; because il car
ries higher rates on most finished
products than a sound, protective prin-
ciple requires; because Il will tend 10
raise prices 20 the consumer; because
IL will tend 70 restrict imports neces-
sary 20 the international commerce OF
the United States and in so doing will
damage the interests Of all those on
whose exportable surplus the inter
national price has vital and direct in
fuapra al g.. Al