New-York tribune., 1922-02-09
American Valuation PLAN
Scored at Opening Of
Retail Dry Goods Associa-
tion's Convention Here

Thc American Valuation plan con
tanned in the proposed tariff bill now
under Congressional consideration was
aetAckcd heavily yesterday Mt The opcn-
ing session OF the threc-day convention
OF the National Retail Dry Goods Az
snctation at the lIotcl Pennsylvania.
ne reaction of merchants to thc at
tacks on American Valuation left little
doubt concerning their convictions on
inc subject. In addition to comment
by Richard Wcbbcr. Of the !. l.. Hudson
company, Detroit, prcsdcr. of the as
SoclHtlon, and Lew Hahn. lr,ansginc di.
rector, the fa rmcr's attitude WAS OK
pressed by James r. howard president
OF the American Farm Burcau Fedora
t;ou.
The keynote of tho convention as cx-
pressed by Mr.. Wcbbcr is the need of
reducing the cost Of stribution. Dur
ing the remainder OF thc convention
specific methods Of attaining this OBJ
lccl VIII be discussed ir general and
group sessions to be conducted hy al,
Vcrt'slnS personnel and traffic |,rours
affiliated with the body
The subject Of "unwarrantcd" ut
t"cks on retailers in pricc discussions
was given considerable attention and
action was taken by tho formation OF
committee and a special fund to dis
*'m1natc information. explaining the
processes and costs involved in retail
distribution.
Decreased Costs
Most stores" said Mir. W.hbcr
with the greatly decreased prices Of
merchandise. have found it impossible
during the past year to keep up their
sales volume. and. consequently. have
had 10 fund ways and means of tecreaS-
ing Their cost of doing business in or
der to prevent operating at q loss.
ne rctall business is without doubt
The most highly competitive Of all thc
country'a businesses, and during tho
last year. when it has been sucn au
effort to keep UP the volum,. compcli
ton has probably been kcencr than
ever before in the memory of most
o., or the members OF our ass >ciation.
Ihls condition alone would ha,. made
It impossible for retailers to hold up
prices unnecessarily It IS true that
IN SONG Of tho lines which We carry
the liquidation Of prices has not pro
crossed so far as in others. and We
can readily understand the feeling Of
the consumer whoa he reads about the
low prices Of certain raw materials
and Still finds the manufactured prod
uct OF these raw materials selling at
rrtait at prices so much higher than
before the war. Although there has
bocn largo decrease from the peak
many articles arc still high compared
with former Standards
We know Of course. that the cost
Of these raw materials is compara-
tively small factor in thc cost Of the
completed article Tho very big in
crease IN wages paid to labor, the IN
creased transportation cost. the greatly
increased overhead because of higl,
taxes, both Federal and local, high
rents and the cost of all supplies and
other factors which enter into over
head charges arc the reasons FOR the
higher prices.
"Aithoush am sure that as mer-
chants VIC look for lower prices even
tually IN practically every line that
we sell. with these reductions to come
gradually. we want to advocate prices
high enough to pay a wage to all wors
cr.' which is adequate to permit them
TO live according to our American
standards and not simply to oxist. In
our own stores feel YOU will agree
with Mo in believing that equitable
wages can be maintained without in
crcasing the pre-war cost Of doing
business.
Scores Valuation Plan
"Thc American valuation plan. with
rates as proposed in the Fordnev bill,
would very greatly increase the duties
or most manufactured articles and
would tend to again increase living
costs. This we do not want TO sec.
We will all doubtless be in agreement
with any tariff measure assessing
duties sufficiently high tc protect our
industries. so as TO maintain the propcr r
standards for the American workman,
but We feel that the For1lney bili's
plan of American valuation goes far
beyond this need, and tina, it would
cndangrr our foreign trade al this
essential that we buy abroad if we arc
to sell our excess agricultural products 5
and our own manufactured comm odi
ties"
The position of the farmer in ,Ao
present economic situation was set
forth by MIR. Howard who asserted
that the cost Of commodities which the
farmer buys must come down or the
price Of the products the farmer sells
must increase. The latter develop
mnnt, he said. is more desired by the
farmer than any great further decline
il the cost of genera! commodities. MIR.
howard also e%plalnCu why IN" l@tln
crs are opposing a sales tax This
opposition. lie said, is based on the
belief that q general sales tax will
pyramid prices OF finished goods.
he touched on the cooperative
movement among farmers, but cx-
pressed the opinion that the rctalers
OF general merchandise have little 20
tear from this source, as the CO
operative orvanizationss are engaged
chiefly III selling farm products. and
in buying only such things as coal and
lumber which have no style element
and which do not deterioratc. Farmers
he said. have been considering segre-
eating ther surplus production to sell
abroad, even at lower prices than those
paid in the domestic market, in order
20 hold up domestic prices but teei
800 do pf.i 81 - - - = -
~ YORK Ry...... ics4 .2:. j.s4 -.
Bonds
$500 An, Gas g. VI IS 80 - 81 -
1000 Keys; r! e: Us =. 80 - -
1870 Lake Sup. ls.. 3i - - -
$500 ph:! l:l ls5 So. ss ss o. q T.,
Pittsburgh