CHANGES IN RETAIL PRICES IN THE UNITED STATES. Reports of retail prices of food collected by the Bureau of Labor Statistics for July 15, 1914, a date immediately preceding the outbreak of the European war, and for subsequent dates, show the movement of prices as affected by the war. Flour made the greatest jump, the price being two and one-half times as much in June, 1917, as in July, 1914, and at this height the price was less than in May, when it was nearly two and threefourth times the price at the outbreak of the war. In June, 1917, potatoes were more than two and one-quarter times as much as they were in July, 1914. Lard was 82 per cent higher, sugar was 79 per cent higher, but like flour was lower in June than in May. Corn meal was 77 per cent higher, bacon 56 per cent, and bread 55 per cent. In July, 1915, all but five of the articles listed were lower than at the outbreak of the war. By July, 1916, all articles, excepting milk and potatoes had advanced, and at the beginning of 1917, even these two articles had gone up. In the last month, from May 15 to June 15, three articles declined in price―hens 2 per cent, flour 8 per cent, and sugar 7 per cent. The following table gives the average retail price of 18 articles of food. The retail prices of 9 other articles have been reported to the bureau only since January, 1915, and hence can not be included in this table. AVERAGE RETAIL PRICES OF THE PRINCIPAL ARTICLES OF FOOD IN THE UNITED STATES, JULY 15, 1914, 1915, AND 1916, AND EACH MONTH, JANUARY TO JUNE, 1917. 1 16 ounces, weight of dough. 1.401 1.649 2.134 1.973 .041 .047 .054 .055 778 .887 .919 .960 .087 .096 .100 .093 . CHANGES IN WHOLESALE PRICES IN THE UNITED STATES. Figures compiled by the Bureau of Labor Statistics show that the wholesale prices of many commodities have more than doubled in the United States since the outbreak of the European war. This is particularly true of grains and metals, immense quantities of which have been sent abroad. As compared with the prices prevailing in July, 1914, the month immediately preceding the opening of hostilities, wheat and flour in the Minneapolis market had increased in June, 1917, more than 200 per cent; corn in Chicago had increased more than 140 per cent; corn meal in New York had increased more than 170 per cent; and good to choice potatoes in Chicago had increased more than 140 per cent. Other articles showing large increases were wool (Ohio, fine fleece, scoured), 134.6 per cent; worsted yarn (2-32s, crossbred stock), 138.5 per cent; bituminous coal (run of mine at Cincinnati), 172.7 per cent; electrolytic copper, 142.5 per cent; pig lead, 194.9 per cent; pig tin, 102.6 per cent; Bessemer pig iron, 267.1 per cent; and steel billets, 419.7 per cent. A comparison of wholesale prices of important commodities in representative markets since July, 1914, is contained in the two tables which follow. The average money prices for the specified months are shown in the first table. The relative prices in the second table are based on the actual prices, the prices for July, 1914, being taken as 100. WHOLESALE PRICES, JULY, 1915 AND 1916, AND JANUARY TO JUNE, 1917, COMPARED WITH JULY, 1915. .042 .058 .075 .066 .069 Hides, packers'. Lb. .194 $9.219 $9.213 $9.985 $10. 530 $11. 131 $11. 869 $12. 310 $12. 475 $12. 550 138 .141 .149 .160 .160 . 162 .141 .111 .157 .165 .175 .196 .218 .242 .242 23.625 18.500 27.167 32.250 33.250 35. 438 39.000 41. 450 41.500 .102 .081 .131 .161 .172 .200 .213 225 .212 .897 1.390 1.170 1.917 1.808 1.984 2.381 2.981 2.694 863 1.795 2.469 2.275 2.669 2.705 2.950 .082 .079 .075 Cotton, upland, middling.. Lb.. Cotton yarn, carded, 101.. Lb. Wool, fine fleece, scoured... Lb.. Worsted yarn, 2-32s. Lb. Coal, bituminous.. Lb. Lb. .131 .092 .130 .176 .163 .258 .270 .335 .318 .305 .305 .315 .330 Lb. .543 .5851 .630 2,240 lbs. 14.900 14.950 21.950 35.950 35.950 37.700 42.200 45. 150 54.700 2,240 lbs. 19.000 21.380 41.000 63.000 65.000 66.250 73.750 86.000 98.750 .051' Lb. 1.750 .220 .113 .098 .099 .109 .108 .095 .096 1.350 2.600 2.850 3.050 3.050 3.050 3.100 3.100 .039 .058 .069 .075 295 .085 095 .515 .186 .203 .208 .255 320 .310 360 .365 .375 1.087 1.130 1.152 1.304 1.348 1.250 1.970 1.300 1.400 1.550 5.000 5.000 5.000 6.000 6.000 .330 .363 .325 .340 .310 .094 .099 .115 WHOLESALE PRICES, JULY, 1915 AND 1916, AND JANUARY TO JUNE, 1917, COMPARED WITH JULY, 1914-Concluded. CONDITIONS OF TRADE IN FOOD PRODUCTS. REPORT OF THE GRAND JURY EMPANELED IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS AT CHICAGO AT THE JUNE TERM, A. D. 1917, AS TO CONDITIONS OF TRADE IN FOOD PRODUCTS.1 The grand jurors, owing to the brevity of the term of court for which they are empowered to act and the country-wide extent of the conditions disclosed, have been unable to make that thorough examination which would warrant presenting indictments against individuals responsible for the present trade conditions in certain lines, but, enough evidence appearing to show in outline what those conditions are and what are the systems of transacting business under which they are produced, the jurors feel that they should at least make a report to the court upon what they have found. CANNED GOODS. These goods are not classed as perishable and do not require cold storage. Canners of vegetables usually dispose of their product by future sales before the vegetables are grown or canning operations begin. The goods get to the consumer through brokers, wholesalers, jobbers, and retailers. The canners, brokers, wholesalers, and jobbers have associations, which select committees whose function is to meet together at intervals. The canners, wholesalers, and jobbers have devised some means for insuring complete cooperation among themselves, which results in keeping the canner from dealing directly with the consumer or with the retailer. Wholesalers and jobbers. will not buy from canners in most cases otherwise than through brokers. If retailers attempt to resist the combination by purchasing directly from the canner, they find it difficult or impossible to do any further business with the wholesalers or jobbers as to other groceries. This situation compels the consumer to pay the expense of maintaining these middlemen, and in times like the present, when an unusual demand for food products exists and is likely to continue, these middlemen exert the power that inheres in this system to extort unconscionable profits from consumers, with no proportionate benefit to those who furnish the principal service, to wit, the farmers, canners, and such retailers as are satisfied with a reasonable profit above the cost. 1 From the Congressional Record, July 6, 1917, pp. 5188, 5189. To illustrate the foregoing we cite the increase of the price of canned tomatoes and corn in passing through the hands of these middlemen during the past year: Canned tomatoes were sold by the canners in the spring of 1916 through brokers for future delivery to wholesalers and jobbers at 90 cents per dozen cans. These same tomatoes are being sold to-day by wholesalers and jobbers to retailers at $2.25 and more per dozen, and consumers are now getting one can for 25 cents instead of the two or three cans they got for that sum prior to this season. Cans and labels, being furnished by the canners, do not enter into this increase in cost in the hands of the middlemen. Canned corn, which was sold in 1916 by the canner to the wholesaler and jobber at 65 cents per dozen, is selling to the retailer at $1.75 per dozen, and the consumer is paying a proportionately high price. In view of this situation in the canned-goods trade and of the existence of similar conditions in the trade in other food products and necessaries we urge the passage of laws to eliminate these conditions and to reduce prices to a normal basis as soon as possible. Furthermore, in consequence of these conditions, brokers, wholesalers, and jobbers are in a position to, and many of them do, hoard up, speculate in, and demand excessive prices for, these commodities; and no doubt they are in the same position with reference to many of the other necessaries of life handled by them. BUTTER. Because Elgin was at one time a creamery center the people of the United States continue to follow prices quoted as "Elgin" prices, although very little butter is now made or legitimately traded in there. It seems that a few traders and dealers, most of whom are Chicago traders, take advantage of this situation to go to Elgin once a week and make a few trades on the Elgin Board of Trade, and thus establish a price for butter for those who follow Elgin quotations throughout the country. The "board" opens at 11.45 and closes at 12 noon on Saturday of each week. Practically all of the trades made on the "board" are made by these Chicago dealers who go to Elgin to attend this 15-minute session. It is a question whether the Elgin "board" is a real bona fide market for the purchase and sale of butter, it appearing that it is merely a place where a few trades are made as a basis for Elgin quotations by men who are in most cases Chicago traders, who could make those sales in Chicago without taking the trouble to go to Elgin if their only motive is to buy and sell butter. |