THE BEE: : OMAHA, WEDNESDAY, AUGUST 27. 1919
WHOLESALER ON
WITNESS STAND
AT STATE PROBE
Vice .President of McCord
, Brady' Co.ives Opinions
on Reducing High Cost .
V of Living.
5 (CenUnoMJ From Tf OtM.
ers In California and they have an
organization that fixes the prices of
dried fruits. We have kept off of
dried fruits this season on account
of the high prices.- he further testi-
fie' Explains Sugar Shortage.
"Why is sugar short in Omaha at
this time?" was another question.
"There is a shortage of snips.
There is plenty of sugar."
"Is it a fact that sugar which was
contracted for by Omaha jobbers
was resold in eastern markets?
"I don't think so. We have re
frained from making such a profit.
There is not much hope of sugar be
ing stored here until the new crop
comes in. The sugar shortage is
greater in the east. In Chicago it
is very short There is no sugar
now in storage here."
He explained that the wholesalers
have been earning a profit of 35
cents per hundred on sugar.
Growers Hold Up Price.
He attributed the shortage of cof
fee in this country to a disposition
on the part of coffee-growing coun
tries to hold up prices. He asserted
that wholesalers figure on 10 per
cent gross profit on coffee. One of
I he factors of the high price of cof
fee, he added, was a general demand
for the best grades' in packages. He
said the demand for bulk coffee has
almost disappeared.
"There has been some agitation
recently against the packers distrib
uting canned goods direct to retail
ers, hasn't there?" asked Attorney
Munger.
"There has been a feeling that the
packers have been going into, the
wholesale grocery business by dis
tributing canned goods in the same
cans with their meats." he replied.
Defends Present System
In defense of the distributing sys
tem which uses the jobber as the
middleman between producer or
manufacturer and the consumer,
Mr, Brady stated the manufac
turer using such a system un
derstands that re can distribute
his goods in a more economic man
ner by eliminating thousands of
imtint anrt manv sellinor a?ents.
He stated that the manufacturer
works on a smaller margin of profit
of S to 7 1-2 per cent, because he
is able to sell in carload lots. The
wholesale, he added, figured on 10
:o,15 per cent, gross profit and he
. relieved that the average retailer
r 'igures on the average gross profit
of 25 per cent, to run a conserva
tive business.
Gives Access to Books.
Mr. Brady wished to explain the
average dealer's net profits were no
more today than thejr were before
the advent of high prices. He also
stated that the credit losses of his
business last year amounted to 1-10
of one per cent, on the business of
approximately $7,000,000 a year. The
net profits of the company were
more in 1917 than in 1918, due to the
rapid increase of stocks on 'hand.
Mr. Brady invited the state officials
to visit the McCord-Brady estab
lishment and make any book ex
aminations they wished
Explain Government Prices.
"Mr. Brady," asked George A.
Williams, chief of the state bureau
of markets and marketing, "a sol
dier friend of mine told me that at
one of the government stores he
was able to Buy a standard bar of
toilet soap for 6 cents, as against a
general prevailing price of 12 cents
in a nearby town; and that coffee
which was sold for 45 cents a pound
at the retail stores could be bought
for 25 cents' per pound at the com
missary. How do you explain that?"
"The government bought the soap
in large quantities and probably did
not add transportation charges to
the selling price, and probably
bought the coffee at the seaboard
price."
Buyers Extravagant.
S. Beninato, manager of the fruit
department of the Central Market,
1610 Harney street, testified:
"There is a tendency among peo
ple of moderate incomes to be ex
travagant in their buying. Recently
I observed wage-earners buying
strawberries at 60 cents a box, a
price that caused many persons of
wealth to hesitate."
The examination of retail grocery
and meat dealers yesterday morning
did not bring out any salient facts
in solving the high cost of living.
The only evidence of the morning
session that went beyond the com
monplace was the testimony of Wil
liam Hykel, retail dealer at 424
North Sixteenth street, who said:
"A friend of mine brought in four
carloads of potatoes from Kearney.
He sold two cars to one of the com
mission men and offered me a car
for $3.20 per 100 pounds. The com
mission men were charging 4 and
cents a pound here last week.
I went down to look at the car and,
while I was there, my friend's part
ner met Jacob Adler of the Ped
dlers' union. , Adler, who has been
Selling stuff to me, was sore be
cause he saw that I was trying to
buy potatoes direct from the track
instead of through a commission
man."
Will Investigate Story.
The state officials are not ready
to attach any particular significance
to Hykel's story, but they intend
to probe further along this line to
determine whether there is any sys
tem used to discourage buying from
sources , other than through the
commission men themselves.
One of the witnesses testified that
he has never heard of any attempt
to restrict the dealings of retailers
with producers.' Another retailer
testified that he bought within the
last few days tomatoes at 60 to 65
cents a basket and retailed them at
7'i cents a pound. The general
plaint of the retailers was that the
handling of perishable fruits and
vegetables is attended by more grief
than gain.
I Some Price Cutting. 1
Tuesday's evidence tended to show
that at feast Trimble Bros, and B.
Blotcky, members of the pool, are
cutting each other's prices on
peaches. A witness testified that
one day last week he found Trimble
Bros, underselling Blotcky 10 cents
a case on peaches, and a few days
later Blotcky was quoting 10 cents
lower than the Trimbles.
Questions referring to the Retail
Grocers' association elicited replies
which indicated that the association
is more of a social organization for
the holding of picnics, banquets and
food shows.
A W, Robertson, clerk for Wilke
& Mitchell, grocers. Fortieth and
Farnam streets, was the first witness
called yesterday. He estimated that
prices of fruits and vegetables in
Omaha this season are nearly 100
per cent more than prices four years
ago.
Demand Not So Great.
"What is the relative demand for
fruits in Omaha this season?" At
torney Munger asked.
"The demand has been materially
reduced during this and last sea
son," he replied. "The high prices
of fruits and sugar have reduced
canning this season. I have heard
women say it would be cheaper to
buy canned fruit than to do their
own canning this year."
Mr. Robertson stated that his
store has been unable to obtain
sugar during the last two weeks.
H. Milder, grocer at 4910 South
Twenty-fourth street, testified that
his observations have been that
pricM of the independent wholesale
fruit and vegetable dealers are in
variably lower than those of the so
called pool.
"We can buy peaches, grapes and
other fruits cheaper from the Ped
dlers' union or Levinson's than we
can from members of the combina
tion." He asserted that cost and selling
prices are small consideration at
his store.
"We bought 200 cases of peaches
at $1.20 and sold them at $1.19," he
testified. "We are even undersell
ing the government by selling army
bacon at 29J4 cents."
Don't Discuss Prices. v
Hyman Osoff, grocer, 506 South
Tenth street, admitted that he was
a member of the Retail Grocers' as
sociation. "What matters are discussed at
the meetings of your association?"
Attorney Munger asked.
"We discuss holding a banquet,
picnic or food show, witness re
plied. "Do you ever discuss prices at
your meetings?" was the next ques
tion. "We do not."
Osoff added that the Grocers' as
sociation does not issue a list of
prices for the guidance of members.
POOL DEFENDED
BY WHOLESALER
AT FOOD PROBE
Manager of Fruit Company
Declares Plan Used Eco
nomic and Permits Buy
ing at Low Prices.
Lincoln, Aug. 26. (Special-
Continuation of the probe on the H
C of L was resumed at the state
house this morning, with E. T. Scott,
manager of Stacy Bros., wholesale
fruit dealers, on the stand. Mr. Scott
said that he wanted to correct some
statements made yesterday, or
rather qualify the same, regarding
the handling of produce between
th east and west.
He said that buyers in the east
simply sell produce for the growers
on a commission basis, in most
cases about 10 per cent, and have no
interest in the cost of the same. He
said that Nebraska and western job
bers generally purchased outright
and sold the same way. Orders are
taken some time in advance, for in
stance, holiday goods, such as cran
berries and the like, used a great
deal during the festal season, the
price was set by the growers at the
time of shipment and the jobbers had
to take them regardless of the cost.
Lemons came the same way, but the
price was set by the producer the
day the shipment reached Lincoln,
based on the demand.
He blamed high prices partly upon
increased wages, freight rates, pack
ing material, but mostly to the will
ingness of the people to pay the
price regardless of the cost. "It is
simply a mad scramble and the peo
pie gobble it up no matter what the
price. In fact," said Mr. Scott,
"money seems to be the cheapest
commodity on the market today.
Profit 30 Per Cent
The firm of which Mr. Scott is
manager aims to do business on
about an 18 per cent profit. They
turn their stock over every five days
and their capital stock 10 or 11
times a year, said Mr. Scott. On a
capitalization of $100,000 last year, a
12 per cent dividend was paid, and
an 18 per cent surplus laid by, and
would make about 30 per cent profit
for the year, which he considered
about a faif return on the invest
ment, taking into consideration
what they mieht lose sometimes.
George F. Burt, manager for
Grainger Bros., was the next man
to testify. Much of his testimony
was along similar lines to that given
by Mr. Scott and confirmed what
the latter had said regarding the
buying and shipping pool. He said
that he did not think it destroyed
competition. He said that he was
selling peaches to the trade to
day for $1.40 a crate but that Stacy
Bros, was getting $1,25,' he had un-
5C
33
lol
for years manufactur
ers have been trying to
duplicate the delightful
flavor and fine texture of
Their failure is best
shown today by the fact
that Post Tbasties are
The Most
Popular
Corn Flakes
In America
LUseeffiss
5
W
LV1
.Oi
23
derstood from the salesman. Then
asked by Attorney Devoe how his
firm could sell for more than Stacy,
he said that his firm had about sold
out while he understood that Stacy
Bros, had quite a supply on hand.
Criticizes Apple Growers.
Mr. Burt did not like the way
that Nebraska apple growers packed
their apples. He said they put the
good ones at each end of the barrel
and the poor ones in the center and
then, too, they didn't fill the barrel
full. He called it "plugging" and not
conducive to good business prin
ciples. However, he said that while it
was true that Nebraska apples went
largely to the east, his firm handled
quite a large quantity and that gen
erally speaking Nebraska apples
were better than those grown in the
east. ,
He was asked by Mr. Devoe how
it was that the price of apples went
up as soon as they were out of the
grower's hands. He asked him if it
was not true that as soon as the
apples got in the hands of some one
between the producer and the con
sumer that the price went up to
about all the traffic would bear and
Mr. Burt said he thought that was
not true. He afterwards said that
the price originated in Chicago and
New York and that Nebraska job
bers based their prices on these mar
kets. Will Continue Hearing.
Asked again by Devoe if it was
not true that he did not base his
price on what he paid for the ap
ples, Mr. Burt admitted that this
was the fact.
Grainger Bros., the firm with
which Mr. Burt is connected, has a
capital and surplus of something
over $1,000,000 according to Mr.
Burt and made a net profit last
year of $142,500 which, however, was
less than in 1917. He denied that
Lincoln commission merchants tried
to stop merchants from buying di
rect from the grower with the threat
that they would refuse to sell them
other stuff if they did.
The hearing will continue tomor
row at 10 o'clock.
Yankee Soldiers to
Study Methods Used
by French Farmers
Paris, Aug. 26. Sixty-three Amer
ican soldiers officers, non-coms
and men have just completed a
course in farming and gardening at
the French national horticultural
school at Versailles.
By arrangement with the Franco
American war commission. M. Boret.
minister of agriculture, approved
mis pian or giving the Americans
the best possible insight into French
methods of land culture. The class
worked in the old kitchen garden of
Louis XIV laid out as "Le Potager
du Rov" hv Xa Otlintlnin. in
Aided by interpreters, professors of
ine national Horticultural school
gave practical demonstrations of
fruit an vegetable growing and per
iodical visits were paid to the fam
ous state and municipal nurseries in
and around Paris.
The class Wat HHf1r fVl rnntrnl
ot Lieutenant Hildreth and consisted
ot 10 horticulturists, 20 farmers, 15
students, two chemists and 16 of
various occupations. "They were
exceedingly apt and enthusiastic
nunil ."said the A'trerinr n( t
school, and we hope they will be
aDie to introduce our methods in
their own farm anil oarripna writVi
profit to themselves. Rank did not
count in ine ciass; a Kea cross col
onel and a captain were quite ready
to snnvl anrt wh1 awav enil in
teams with private soldiers."
Shopmen Take Ballot
on Wilson's Proposal
(Continued From Face One.)
whom have made or will make de
mands for more money, would in
clude the shopmen, and they were
told not to forget that a strike now
meant that the shopmen were strik
ing alone to force an increase for
the entire 2,000,000 railroad em
ployes. Strike benefits, it was said,
would not be paid beyond the limit
of funds now available.
Contents of Letter
The letter sent by the committee
of 100 to the various unions, is as
follows:
"Practically every class of rail
road employes have now submitted
requests for very substantial in
creases over existing rates of pay.
It is well that our members give
very serious consideration to this
fact if there is to be any additional
general increase in the wages o
railroad employes, the federated
shop trades will receive the same
consideration. Don't fail to give
this statement careful thought and
don't forget that if the federated
shop trades become involved in a
strike now, you are striking alone to
force an increase for the 2,000,000
railroad employes.
Must Vote on Strike.
"In view of the foregoing facts,
the statements contained in the pres
ident's letter and the responsibility
that must be assumed, if a suspen
sion of work is to take place, your
executive council has decided that it
would fail in its duty were it to au
thorize a strike until the membership
have had an opportunity to decide
their course of action on this propo
sition. It is not our intention to
shirk any of our responsibilities as
executive officers and the wishes of
a constitutional majority of the
membership, expressed by their vote
as hereinafter directed, will be car
ried out."
Miners to Lose Charter
if Strike Doesn't End
Springfield. III.. Aug. 26. Orders
telegraphed today from state min
ers' headquarter, to secretaries- of
all coal mine locals in Illinois said
charters of all locals which per
sisted in the present strike on or
after Saturday, August 30, would
be revoked.
Atlantic City Chosen
for Next Rotary Meeting
Chicago, Aug. 26. Atlantic City
was selected by the board of direc
tors of the International Association
of Rotary clubs as the meeting place
for the 1920 convention. The direc
tors, meeting here, named June 20-25
as the time for the sessions-
THREE AIRMEN
REACH GOAL IN
AERIAL DERBY
American Air Service Flyers
Complete Round Trip Be
tween Mineola and
Toronto.
Mineola, N. Y., Aug. 26. Three
entrants, all American air service
flyers, had finished in the interna
tional aerial derby between Mineola
and Toronto at 6:44 o'clock Tues
day night, Lieut. M. J. Plumb and
C. VV. Maynard completing their
round trips here and Maj. R. W.
Schroeder, ending his at Toronto.
Lieutenant Plumb was the first to
finish, landing at Roosevelt field at
5:50 p. m. after a gross time of 26
hours, 38 minutes, since his start
here Monday afternoon at 3:12.
Major Schroeder, the second to
finish, started from Toronto Mon
day at 12:45 p. rri". and ended his
journey this afternoon at 5:52, con
suming a gross time of 29 hours, 27
minutes.
Maynard Finishes Third.
Lieutenant Maynard, third'to fin
ish, alighted at Roosevelt field at
6:44 p. m., after the elapse of a
gross time of 26 hours, 41 minutes,
since his start here Monday after
noon at 4:03.
In announcing the first three rac
ers to complete their trips, the
American Flying club stated that
actual flying time would not 1 be
known for many hours, when all
stations along the route had reached
arrivals and starts at their points.
The winner of the derby will not
be known until officials' reports are
all in, it was added.
Lieutenants Plumb and Maynard
both used DeHaviland "four" ma
chines with 400-horsepower liberty
motors. Major Schroeder used a
Vought.
Planes Faster on Return.
It took Lieutenant Plumb 20
hours and 15 minutes to reach To
ronto from Roosevelt field on the
first half of his flight, arriving at
the Toronto landing field at 11:27
a. m. Tuesday. He made the trip back
in five hours and 50 minutes, start
ing from Toronto at noon, he said.
Major Schroeder consumed about
six hours and 52 minutes in reach
ing Toronto from Mineola, getting
away from the local field at about
11 a. m. today, after spending the
night here. He arrived at 7:22 last
night, six hours and 57 minutes
after he left Toronto.
Lieutenant Maynard took 20
hours and six minutes to make the
flight to Toronto, arriving there at
12:09 p. m. today. He started back
at 12:39, taking six hours and five
minutes to get back on the second
half of his round trip.
Investigation of Print
Paper to Start Soon
Washington, Aug. 26. Investiga
tion of the print paper situation will
be conducted by a subcommittee of
the senate manufacturers committee
with Senator La Follette of Wiscon
sin, as chairman, it was decided to
day. Chairman La Follette an
nounced that the committee first
would devote its attention to the ex
amination of information secured by
the federal trade commission, after
which hearings would be held.
Four Units on Guard.
Raleigh, N. C, Aug. 26. Four
companies of state troops were or
dered today to Charlotte, where dis
orders in connection with a street
car strike resulted last night in the
death of at least two persons and the
injury of a dozen others.
Anti-Red Army Advances
Along Entire Front
London, Aug. 26. The war office
announced this evening that on the
western front of General Denikine,
the anti-bolshevik leader in south
ern Russia, the advance is continu
ing with great rapidity along the en
tire line.
Belgian Senate Ratifies "
Treaty With Germany
Brussels, Aug. 26. The Belgian
senate Tuesday unanimously ap
proved the peace treaty with Ger
many. The Chamber of Deputies
ratified the treaty August 8.
Bee Wsnt Ads boost business.
Aluminum Ware Sale
Wednesday at Harper's.
TKonrosoa-Belciigri 6-Co
Fall Dresses
Distinction of tine, en
hanced by individual
touches in the vay of
trimmings, make these
frocks, both rvoolens
and silks, the attractive
things they are.
The materials are rich and all new weaves are
represented in woolens, tricotine, duvede
laine and Poiret twill and in silks, meteor,
pebblette, tricolette, Georgette and satin.
The group of especially fine dresses for $98.50,
as well as models for either more or less, are
well worth viewing.
Sorosis Shoes
for Autumn Wear
The nen Sorosis shoes in
black nd dark brown,
have very graceful lines,
long, slender vamps and
dainty Louis heels. Prices
are very reasonable, low
er, in fact, than they tvill
be later in the season.
Children's
School Hose
Pony hose, fine ribbed,
with triple knees, heels
and toes, either white,
black or brown. Small
sizes, 55c; large sizes,
65c a pair.
Boys' medium weight
Pony hose, in small
sizes, 55c; large sizes,
65c a pair.
Misses' shaped lisle
hose in black or white,
with garter top and
double soles. Lisle, 75c;
silk lisle, $1 a pair.
Fai(i-ta-si
Crepes
Several new fall
shades in this heavily
creped silk have ar
rived, especially fine
for separate skirts.
Woolens...
New broadcloths, tri
cotines, poplins and
invisible checked ef
fects may be had now
for over $1 less than
prices later in the
season.
Higher Rates Must
Follow Increased Costs
This is what present conditions mean in the
telephone business:
Higher prices for nearly all tele
phone material
Increased cost of all labor that
goes into plant and equipment
Advanced wages for telephone
employees
Increased traffic requiring more
equipment.
These conditions have made it impossible foi
us to hold our rates as low as we did before
the war.
NEBRASKA TELEFHONE COMPANY
