The New York Times/1916/11/22/State and City Act to Balk Living Cost
STATE AND CITY ACT TO BALK LIVING COST
Hartigan Trying to Arrange for Direct Dealing by Producer and Merchant Here.
VIOLATORS OF LAW SOUGHT
Commissioner Dillon Urges His Terminal Market Plan Again—May Appeal to Legislature.
Not since the beginning of the European war, when it was feared that the price of foodstuffs would go to war prices overnight, have city, State, and Federal authorities been so aroused over the upward trend of the necessities of life. Legislative action is urged by some, the interference of the National Government is demanded by others, and the city authorities, through the Board of Aldermen, also seek relief measures.
All those who are now striving to better conditions are turning their efforts toward determining whether the law has been violated, whether honest weight is given, as well as how best to facilitate the getting of foods to market and eliminate the middleman. All realize that, unless there is concerted action, the merchant and the manufacturer will go on raising prices, either in accordance with the law of supply and demand or because they can profit by necessity and get more for their goods.
Within a few weeks, it is expected, information will be placed in the hands of United States District Attorney H. Snowden Marshall that will warrant the Federal Government taking some action regarding the unlawful holding of foods in storage. The State will be able to do but little because many of the storage plants are in New Jersey. The city may, however, be able to take a hand in the matter provided the investigation by Police Commissioner Woods and the Department of Health shows that the law regarding egg storage has been violated here.
Other lines of activity have been opened by John J. Dillon, State Commissioner of Food and Markets, and Joseph Hartigan, Commissioner of Bureau of Weights and Measures. Both these officials are giving attention to the problem of getting food into the market, believing that if this is properly and economically done the cost of living will be lowered. Commissioner Hartigan is having prepared a list of producers and manufacturers who desire to do business directly with the trade rather than through a middleman. Commissioner Dillon has a plan for a terminal market and co-operative stores here.
Investigation by City.
The Wicks Legislative Committee and the Mayor's Committee probably will get together to consult upon legislative measures. Another corrective measure will be the passage by the Board of Aldermen of an ordinance prohibiting the sale of coal except by weight. This measure has twice been introduced in the Board of Aldermen, but has been defeated.
Alderman Isaac Gutman introduced a commission of ten business men to be be questing Mayor Mitchel to appoint a commission of ten business men to go known as “the Commission on Common Commodities.” The duties of this commission would be to inquire into the high price of coal, and it would have power to summon witnesses. The commission, though appointed immediately because of the coal situation, would have power also to inquire into other commodity markets. The resolution was referred to the Committee on Rules.
Commissioner Hartigan conferred in the afternoon with ten business men, representing the retail grocers, butchers, and delicatessen trade. Each had a story to tell of how the increased cost of the articles they carried had forced them to a minimum of profit from their business in spite of the high prices. The retail grocer made a margin of 15 per cent. profit before high prices came, it was said, but now, Mr. Hartigan was told, a grocer was lucky if he made 5 per cent. In the delicatessen business the profit had been cut from 25 per cent. to 15 per cent., it was said. The butchers complained that, whereas in normal times they made between 15 and 18 per cent., they now had to be content with 5 per cent. These percentages, of course, it was explained, referred only to the small shopkeepers.
All these men told the Commissioner that never before had times been so hard with them, as housekeepers will not submit to prices that would insure greater profit. The dealers predicted that, within the next three or four months, the records of the bankruptcy courts would show more failures than ever before in the history of the trade.
Thinks It a Federal Problem.
“The attempt of any one man or group of men to remedy price conditions will be futile,” said Mr. Hartigan. “If the situation gets tense and prices advance as is indicated the only power to remedy conditions will be the Federal Government. The increase in prices of necessities has now advanced from normal times 40 to 150 per cent., according to the commodity. This advance is in the face of the fact that there is no scarcity of foods. We do not face a famine.
“The people who are going to suffer most are the wage earners, the bank clerks, the store employes and the persons employed in various professions. In times of low prices this class is happy and is able to save. In times of stress they are afraid to complain because they are afraid of losing their positions. Now these persons are barely able to make both ends meet. They have to pay more than 40 per cent. out for food alone. They have no chance to save and they will suffer if prices go higher. Of course one way out is for a raise in salaries. Indeed, some concerns have already done this. Others are buying in large quantities and selling to their employes at cost.
“Publicity and high prices are coincident. It is believed that wide publicity of high prices advertise conditions that would not have been thought of by some dealers. Perhaps it would be well to have less publicity until some program of relief is worked out and, when it is, then submit it to the press for discussion.
“I am ready to submit to retailers a list of manufacturers and producers who are ready to do business directly with them. It would be a good thing if some of the small dealers took advantage of the offer and brought in large quantities through their associations. I will not act as sales agent. I will simply give out the list and maintain an information bureau.”
Commissioner Dillon’s Ideas.
Mr. Hartigan said present prices had caused the boarding houses to suffer and, along with the advance in prices of certain commodities, the prices of articles that could be substituted for them had also gone up.
The cost of living would be materially reduced by the elimination of the excessive cost of handling in the opinion of Commissioner Dillon. The Commissioner said frankly he was not in favor of investigation and inquiries, which had done nothing, in his opinion, except to ease the public mind in periods of stress. The passing of commodities from hand to hand added to the price, he said, citing eggs as passing from the farmer to the speculator, who bought them in the West; then to the Eastern storage warehouses, where they are held until prices tempt their sale.
The establishment of a great terminal market is the remedy suggested by Commissioner Dillon, who has worked out a plan which he will submit to the Legislature. He wants to give the producers an opportunity to sell directly to the consumer, and believes prices can be lowered by 20 to 30 per cent. by this process.
“The solution of the problem is the establishment of a big open market, controlled by the city or the State, where the farmer can come or can ship his goods knowing that they will be kept in proper storage and disposed of. The great trouble is that it is costing too much to get the food from the farm to the dinner table. Prices show this.”
Pending the establishment of a central market, Mr. Dillon will propose the formation of a co-operative organization to back three popular price stores. One will be located on the east side, one on the lower west side, and one on Washington Heights. The stores will obtain their stock from the producer and sell to members at cost.
While all this is going on prices are advancing. Now it is the pickle that has joined the high price ranks. Not only is the demand for pickles greater than ever before but the pickle crop has not been up to former years. The car shortage has also influenced the market. Along with the other troubles that beset the pickle manufacturer, the price of glass has gone up, as well as the cartons in which to ship pickles. The only article that has not gone up, it is said, is the olive.