Evening star., 1933-10-09
LOCAL RETAILERS
INVITED To EXPLAIN
OF COTTON
US. Seeks Reason Why Sales
Forces Lay Increases to
Processing Tax.
PROBE is BASED UPON
PROTESTS OF CONSUMERS
Call of Merchants Is Not Implica-
tion Their Stores Are Under
Suspicion.

Leading Washington retail merchants
have been invited to explain at pub
lie hearing Wednesday morning why
some members Of their sales forces at
tribute large mark ups in the price of
retail cotton goods to the processing
tax alone
An investigator for the Office of Dr.
Frederic c. Howe. consumers counsel,
has "shopped" around Washington
stores and found that sales clerks, in
many instances, tell customers the in
crease in price of Sheets towels, hosiery
and other cotton goods is due solely to
the AZ cents tax
The local check-up was made after
many complaints to DR.. Howe made
through the Washington Consumers
Council, of which Mrs. John j. Boyle,
jr., Is chairman. AS a result. George
N. Peek, farm adjustment administra-
tor, called the hearing and asked that
local store executives be summoned.
Mrs. Boyle May Testify.
Mrs. Boyle is expected to testify at
the hearing. Matthew F. Boyd and
Rev John A. Ryan. the latter repre-
senting the National Catholic Welfare
Council, also will appear for Wash
ington consumers.
Store executives invited to give testi-
mony include Julius Garfnckel. presi-
dent of Julius Garflnckel g. Co.; G. N.
Everett, president of Woodward &
Lothrop; Adolph Weyl, treasurer Of
Lansburgh g. Bro; B. B. Burgunder,
president of S. Kann Sons Co: Harold
Levi, vice president of Hecht Co.: A. C..
Case. general manager Of Palais Royal
I. Goldenberg president Of Golden
berg's Department Store, and Radford
Moses, president Of w. B. Moses e.
Sons.
The hearing will be held in room 2o1
at the Agricultural Administration
Building at 1890 am. and Admins
traitor Peek is expected to preside.
It was indicated today that any
Washington consumer interested in the
investigation will be given an oppor-
tunity to be heard and. If necessary,
larger quarters will be provided.
Checks Made Elsewhere.
In announcing the investigation here,
Peek also said similar checks are being
made in other cities. If the results of
the Nationwide inquiry warrant. fur
ther conference of representative retail
store executives from various parts OF
the country may be called to determine
on what basis in fact their sales forces
are explaining the increased retail cot
ton goods prices as caused primarily by
the processing tax.
DR.. Howe also reiterated his warn
ing to housewives and other cotton
goods purchasers that the tax is only
AZ cents per pound on the net weight
of cotton going into the manufactured
commodity.
Those who do the buying for house
holds" DR.. Howe declared, should bear
this figure in mind when they are pur-
chasing cotton goods. The tax alone
| does not justify many of the increases
of which we nave complaints, and
when customers are told by sales clerks
| that these mark-ups are due only to
! the processing tax they should question
! the assertion closely. If they are not
satisfied. they should carry the matter
! to the store manager for explanation.
The amount of the tax on sheet
81 by SO inches, containing about 2
pounds Of cotton and retailing at all
! average price of SIPS. is. for example,
/ just under cents" DR.. Howe con-
! tinued Work shirts weighing nine
tenths of a pound and averaging IS
cents apiece warrant tax of only 81
cents Overalls of Just about 2 pounds
|
Of about 81. cents. and on unbleached
muslin averaging 13 cents yard with
a third Of a pound of cotton, the tax
should be about l cent"
DR.. Howe said that in some stores In
Washington the clerks apparently had
been instructed not to attribute the
price increases to the tax alone. In
these stores the tax and the increased
labor costs caused by the N. r. A. code
were both mentioned as a probable
cause Of the price advances.
Invitation Not Accusation.
In his letter to the store executives
inviting them to the hearing. Admins
traitor Peek said: The fact that you
are receiving this invitation" Peek's let
ter stated, Should in no way be taken
by you as an indication that your store
is under suspicion of using unfair sales
methods in respect to the processing
tax. There are stores which are metz
culously fair in regard to the tax
| There are others whose sales clerks cite
the tax as their only explanation fol
the increase in prices. We are making
! the same inquiry in other cities and
obtaining the same results"