PROFITEER HUNT IN BRITAIN

Dominion, Volume 13, Issue 72, 18 December 1919, Page 9

PROFITEER HUNT IN BRITAIN

SOME RESULTS OF NEW ACT

PRICES COMING DOWN

("Melbourne Age" Correspondent.)

London, October .'lO " When the Profiteering Act was passed bv tho British Parliament m August last iiinnv of its critics declared that it was a crude, cumbersome measure, which would entirely fail lo bring down prieesr 'Other critics praiictod that it would be used to hntass shopkeepers, and while indicting coi.siderablo annoyance upon them, would not bestow any substantial or lasting benefits upon tho public. Thoueh the' Act .has now been in force 'onlv a r-Kv weeks, and the machinery tor its oii.-.M.i.m is not yet. in full working order, r « already evident that the Act lias lul' fc::ieficial results in reducing tho iii-icos ;,|-"niany articles, nnd that these results will soon be extended. But it is also evident that .the. fall in prices will not bo sensational, as profiteering is not the onlv cause of high pnecs. the high cost of raw materials will keep lii-ices up.to a comparatively high level until immoved methoos of maiiuiaclurc '(including mass production) give a greater output at lower cost. It is recalled that after the Napoleonic wars it was five vears before prices fell iO .a '■ normal level. As regards food, it- ins been stated bv the Pood Controller that prices will rise still higher during, die next few months, owing-to the, conirot - .- J.ion of Central Europe for the available suonlies. ~-.,, •-i . The Profiteering Act is diyded into two main-parts.' One is.ior doa'ing 'with iirofitt-ering on the part o. rowers nnd the other for dealing with wholesalers anrt Irusts, and tor invest!--ntiiig the costs cf manufacture. Up to the nresent only the first part is m noer'ntion but the necessary preparation,.-, for uttinsr the other r.r.rt into operation are tf"ll-advanced; . The attack on pro titeerimr retailers is. carried out J fneans'oflccal'commiiteesappo.n dy local "ovcn.ing authorities. So fai IUM of these committees have been appointed, but about 250 local authorities districts have refused to take any action • Any member of tho public who is, charged what ho rocards as an exce=snc : ror an article by a shopkeeper . canSo a coim.bini to a local committee or the district in which the shopkeeper "rri^r'business, .The comm, ee'investigates the complaint, and if it. finds hat tho shopkeeper has charged an exesivo .price it has power to order a 'refund of part of the ■« llo P l^^iUt P 5 fif The shopkeeper has, the "git ol aopeal to o. specially, appointed tribunal, ,7which the4will.be about a hundred throu.-hout the country when the act n. ■in-fiill opmtion..'.« w expepted,h - ever that the chief work ot ■ thteo U"; b,r!als will not be to hear shopkeepers. appeals,from decisions of .local, ojinrtttees.'but to hear .iirosecut-ons instituteil ■ liy local committees 'against shopkeepers. - 'The .local comwifUcs can order a shopkeeper to'refund Part of his .profit on. %a sale'of any article, coneornins which- ; f has deceived a complaint from the purchaser; but'it-cannot impose a hne.on-.-. the\shoukeepor. ,Jf the only penalty towhich.a profiteering shopkeepar was exposed was a refund of "art of his p ohlon a single article the Act would not domuch to make orofitcenng unprofitable/ though it would lend to bring- down, prices to some extent, as shopkeepers, j-r-ali.se that tho exposure of a-ea=e otprofiteering before a local committee is a bad advertisement for their biwinw. But where local committees find flagiant ■ass.of proliteering thi'.v not only order' a refund of part'of thc.profi, but institute a m-osecution against the .- shopkcepcr bofore the apnral tribunal mm the l'strict. -The appeal tribunal has.powcr to impo-50 a:, line up to JBSOO, with or without imprisonment' for a maxniiuin period of sis months. Ill) to the pre-: scut no appeal tribunal has sa X .but a number'of. .prosecutions bv oca commiUe.ps.nre awaiting the conslilutioii of these bodies'. " , ... i . '' -.OjiUs-'on the- Public. - : - ... ,-,'. "it will be wen.'that Ihe success of tho operation'of the .Profiteering Act against retailers depends on the public bring"!ng '.cumplaints ngninst shopkeepers be.ore Ihe local'committees." But, in spite ot tho general indignation'against profiteering, th» public', has'been slow m giving lie local coiiiniittew complaints'lu investigate, and ut first it looked as if the Act would prove to be a •complete Mr. M'Curdv, the Parliamentary Secretary of the Ministry of Pood, who'is in charge of the Profiteering Act, complained in the newspapers that the public were su accustomed to paying high prices that "no cue would take the trouble to lodge 'complaints, with the local committees.. ■The newspapers, by .their persistence, succeeded in arousing :the public lo the tact that u remedy . against profiteering lies in their hands, and they, convinced'their readers that .it'.was a public duty on the part of-.everyone to se:' that Ihe Act ■was."'made a success. Many complaints 'have since beeiif brought before the Ici-itl ; c«miiiittees,..and, as- the newspapers are giving much .publicity lo ihe work rf these bodies, a. feeling of alarm has been created among wholesalers and rdailers, with the, result- that prices generally have begun to decline. The local ■ committees have no rower., over the wholesalers, but if p. commit-, tee finds on investigating, a complaint that the retailer is paying the wholesale firm from whom he deals an excessive price it sends details uf the case to tlio .central committee, which has power -In deal with .the profits ef wholesalers and trusts. Tlu'-'elfect of exposures before the local committees of.' high prices charged by wholesalers lo letailers, is ■that wholesalers lire reducing their prices, .although the central committee has onlv begun its work within '-ho past lew days. , .. Some-Cases. The following cases, taken from hundreds which.have conic before local committees will supply an illuslriitiun t-i tho working of the Act in checking the pio- • littering of retailors:— Messrs. rieifrio'ge, who own or.e-of tlie largest departmental stores in the West "End, charged £2 17s. ' Gd. for a cloth ci"it, '2o inches long, bought for u girl n f five yeau. One of the firm's buyers .stated that she bought the coat in July last for 82s. Gd. iioju a. wholesaler, who was'compelled lo get rid 'of lis f,tock. The wholcEalo price of such a coat would now be at least -IK lid. A director of tbo firm' stated that, the ra"to of pn.iit on the coat was -t'2 per' cent. The percentage, ofproiit in tlie department I'rc-m which the coat had bfeu sold had been under il'J per cent., but the same rate or picfit v.-.-is not charged-on ol! Hi.-' i r ooils> in the department. Tfii! couuuittec ordeveJ the iirm to refund 12s. fid. to the pufrhnser,' but decided not to institute a prosecution a.Tainst the linn beraro th': (I strict tribunal.

Professor T. J.' 1 . Tout; of .Mancliestei University, ordered from Messrs. Laiicnsfrv ami Jeffrey, tailor. l ;, with whom he had been a customer for over twenty year.-, a black suit, with an extra pair of trousers, for cacli of his l.uo boys, aged 15 and H. who were akiut to return to school, mid thru!) additional pairs ol 'grey trousers. Hewas charged ,£ll lis. for each suit ir.id -Cil las. for each ii;i:r of trousers. The . lai'rjrs, in defending ,11k* clmige of profiteering, stated that the"blolli for the suits had cost them 10s. a yard in ISKi, but owiii.g lo the gieat increase in the cost of I needs and cloth* its present -wholesale price was 245. (id. a yard. On the has'* Unit Ihe cloth would now cost tlietn 2-I«. fid. a .yard, they submitted i:> the committee a statement showine; that after allowing 'Id .per cent, to cover working expenses, the protit on each suit was only lis. (id., and ou rueli pair of '-'imisers only lis. The committee ordered a refund of 20 per cent, nn th." suits .-11111 '£) per tent, on the additional wirs of iiimseis, the lolal refund be'ng .til Cs. Id. The coiuinillee also decided lo iii'-tiluto a prosecution before. Hi" di-lrict Iribiuml, Willi a vir-w to a siilist.inlial line heing jnposP,| cm Ihe |„i!n;s.

A lady complained lo Ihe Soulhgate profiteering eoiiiniillec thai she was charged Us. Hid. for an article of 1111deirlolhing v.hii-li. before (he war, she could have cblamcd for Is. Cri. The drair.'rv liri'i produced evidence to show that |\. '•.-hclesale ori.--- of the nilicle was now .'ills. fid. per dozen, compared with lfe. lid. before Ihe war, and lh.it Ihe rale of profit 011 the article was !!8

per conl'., which was the same rate as they obtained bofore Ihe war. Tho committeo decided that there had not been anv profiteering, and. dismissed .the case. A shopkeepor-iii (lie I/ond(iii'suburb-Of Batlersea, w'ho charged ;!Bs. fid, for a pair ot ladies' dress \shoK produced an invoice bolero the local committee, showing that the shoes had cost him 2os. id. The committee 1 ordered him to:refund us. .Id. to the purchaser. Another suburban shopkeeper, who charged 525. (id. for a liair of ladies' boots, was ordered io refund :>3. (Id. •' : A .draper.-in Pulliam .lfond, who charged 'Is. (it 1 , for a pair of socks, which cost him "2s. (id. wholesale, was ordered 1 to-refund "is.; and was informed that a. .proseciilion,would be instituted against him. A grocer who charged -Isper lb. Tor-chocolate biscuits, wfrs order-, .eel to refund Is.'3d. ■' A grocer ill Hack-■ nev, who charged -lid. ..for an ounce ol pepper, which.. he . bought wholesale at 2s. Id. per lb'.„ was ordered to refund 2Sd. " The' oniiim'itteo ''decided' to prose euro him-before'-'-the district tribuiial. In some cases where. Hie complaints deal with articles of small value-such as bootlaces, boot polish, or reels of 'cotton, the refund, ordered by .tlie comnyttee is nlv; a matter of- a penny 'or' two-some-times onlv a halfpenuy-bul the ell cot of the: publicity given in ; the newspapers to s'ucli cases is To brnlg down . the iirices of similar articles at liundreds of shoos throughout the■'. country. •And .where'the'rate'of profit is hififh on Pin.-ill article?, 'nrbsecutio'ii's before the district tribunals will be instituted in ..order lo checlc by ii'subslmitial fine, profiteering on articles of small value. It cannot bo pretended'that all thew lfiOli local committees are' dealing, out eveii-hiinded justice as between customers and shopkeepers.' The committers •have .no "precedents" or experience,- to guide them..nnd each. one. is.a law. unto itself. ...Therefore,, it. is' not surprising that tliero is oftc"n ■ considerable difference in'"'tlio' wav two'committees deal with similar'complaints; ' Por the most part, tlio. men'■ •composing' ! these t*iiK mittcos have had n'o " legal or judicial training of anv kind. But in a rough" and ve'idv way they are checking pi'o..ntoeriug';' nnd bringing pric.>s down, without iiillictingahy injustice on tho shopkeepers: . Those "shopkeepers who feel that thev havo been unjustly irer-.t. Ed bv a'dec'isidn of "a local 'committee, have' the right of appeal' to a districttribunal, which will include men of legal, •training with experience in the .1(.--ministration of' justics.' "■' :-?.:■ ■ -' Another-Result;' '• , • ■ In another way (lint .was not anticipated Hie Profiteering Act is bringing down price's. - Manufacturers are taking steps to see That''the goods- they pro--"duee are "offered- to tho public at reasonnable prices.' : For instance, Unincor-porated'-Federated Association 'ot uoot and Sine Manufacturers'-is carrying out a scheme, under which boots and shoe of various grades but of -'.stand-u'd' qua • ity will be manufactured by them with tlio} rota.il price .stamped in the soles of each pair. " '.; .; This scheme will be only a temporary one for the purpose of checking profitBering by wholesalers "and 'retailers. It wijll 'bo 'abatid'on'e'd when--normal' trade conditris ' retuVii;" and competition increases. There has been some difficulty in inducing retail'shops, ta ..accept Ihe --chenicVas it vesfricts-their. competition ■■ rath-one 'another;. It' lias been the custom Tor the price's-of the same .class, ''of boots'to carry-ih■■different shops, according to the locality -in which a. shop 'situated, and, tho class of customers lor 'which the shop enters. The council ot the Drapers' Chamber, of .Trade drew up 'iv soiiiewiia< similar scheme.. ..It pro--■posed to ensure that in every 'drapery -establishment there would be a iuil>sfantiai selection of-.-necessary articles such as dress goods, flannels, house linen, costumes and underwear, and men's clothing, offered -at reasonable prices, with the'guarantee of the.Drapers Chamber of Trade that the profit on them did not exceed a reasonable .limited rate. This scheme, after receiving the "blessing of the Minister who ..is, adminis- ' foring tho Profiteering Act, -was rejected "at ii conference of .members, of the drapery trade. The -rank and .file, of the trado contend that, their profits uro.not unreasonable'.'that, prices-have nqw.reaohed I heir maximum, and-that drapers ..v; I ■noH-'lmVe to T,ii.NT^Ueir (| stoclc. | oil 1,';ihg} niarket,r,.aiid i -this ,w!11..| 'fcurliuT their'-' profits^■..;••■■• •-..., > ..... •'• The 'inquiry' into the-operation.,of ti listsiv connection ivitlr- profiteering is. Lung., done by a. nuniber of -sub-committees act.ing under the authority of;a..central ceni.-. nidtee on which the. tlovei'iimtint, ..innii'.ifdclu'rers;ein]iloyers, trade unions,. sin«. Co-operative societies- are repre.wnted. Nearlv twenty sub-committee.- are. uiejuiring iiilo the costs and profits, of various articles of manufacture,. so that the Investigation'of Prices Committee will be able to inform the public .what are reasonable Prices'• of these articles. It will, therefore, be .seen that the, I'nifilcring Act is ii -comprehensive.measure, ■and that .when it is in lull vorking order a substantial reduction 'in" prices, will be effected. Beneficial results'in .bis direc lion have already been achieved by the partial working,of.the Act.. It has- become obvious thai even those retailers who-, are- not. profiteering. arc "doing their best.-to keep .R.ic'cs. up. to. a '.high-level.- . Before..-.t-ho local.x;ij.':iinilte"fS' -shopkeepers who have - -been r.bie.'to show ■that thev have been charging only their pre-war rates of profit of 20 to 33 1-3 per cent, on the. goods '.hey handle have escaped censiuie.'.l'V 'hese g. ods they havoto pay the wholwaiers much "higher l prices than before the' "Mar—in s'onio .'cases four or' five "times is .-- -.iclt. •.' By" ehnrgiug the old. Percentage ol'Tfofit on .these goods they, are iu.aking four or five times ns much actual "profit as did before tho war. The fact that all mid-' "dloinen through Whose'hands goods puss are making-larger- ;ictunl profits than before the war; though charging the old. percentage of profit,'helos tb.-xpiain why • prices are almorni.il. The : vciise of the .-.middlemen is that" :li'-ir expenses are higher,, mainly., because they a; e paying .their employees higher "ages to hie-el the increased cost of living.