THE PROFITEERS

Dominion, Volume 10, Issue 3143, 28 July 1917, Page 8

THE PROFITEERS

AUSTRALIAN BUSINESS MAN'S INVESTIGATION. After an exhaustive investigation into the question of price fixing in various parts of the Commonwealth, a prominent Melbourne business man emphatically contends (says tho "Age") that tho main reason for the enormous charges which consumers are now called upon, to pay was due to a determination on the part of business firms to make a certain percentage .of profit on their turnover, even though it be increased only in value and not in quantity. j "Take, for instance," lie said, "tho case of woollen goods as a typical illustration. Wo know that the wool has gone up by at least 50 per cent, in value. Consequently tho article which cost the wholesaler JBIOO before tho increase will now cost him ,£l5O. Instead of being satisfied, however, with his old profit, which was deemed to be sufficient, ho still insists upon tho same percentage on the increased amount. Placing it on tho basis of 20 per cent., this gives him .£3O, whereas lip formerly obtained 'only ,£2O. Seeing that it is precisely the san™ quantity of matorial that ho is handling, is not tho extra .£lO inoro than sufficient to cover any additional costs of distribution and tho interest on tho additional amount of monoy involved? This is but a small illustration, and wlion it is applied to businesses with a turnover, of .£IOO,OOO, it will be scon how serious the matter becomes. Tho nrofit insisted upon is tlion J230.000, instead of .£20,000, which, of course, tho consumer has tp pay. With many tho enso is even worse, for where tho increased cost of materials is 50 per cent., they promptly advance their prices bv double that amount, taking advnntnqe of the shortage of shipping space and the eonsenuont shortnoro of supplies. A furthe illustration of the manner in wliioli consumers are unjustifiably fleeced is provided bv fhe case of imported boots. Boots which were previously sold for £1, and even thon returninghandsome profit. aro now bein# retailed for 305., although they bavo been in stock for quite a long timo." In connection with the ment trade, tho oninion was-expressed t!jal; the introduction of cold storage had been decidedly to tho dotrimont of tho consumer, innsmuch as it enabled speculators to hold meat in order to keep tho market short sunplied with tho view of enhancing prices. The only romedj in tho ense of live stock was to fix a rate per 1001b. of beef of resneef ivo eracl"' on (he hnnf, as was the custom in otlie>- countries, nnhbly the UniW Rial"?. These views, which,' as alreadv stated,.were arrived at offer an exlmustivo investigation of Hie whole question, strongly demonstrate the need for Government action in tho interests of tho consumer as well a3 the producer.