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Show GROCER OF OGDEN TELLS OF OflVFJINHFliramOFM The grocers of Ogden will soon bo licensed by the United States govern-menL govern-menL The licensing is for the purpose pur-pose of doing away with more thnn a reasonable profit on all the merchandise merchan-dise they offer for sale. It provides that "a reasonable profit" over the cost price of the goods is all that the grocers may ask. The ruling is, in some respects, a good one, according to one grocer, but in other respects it is mighty bad and he is of the opinion that it will force many of the smaller merchants out of business. "While It is necessary to regulate the profits on all foodstuffs during the period of the war," said J. W. Wilcox, Wil-cox, of the Modern Market, "the regulation regu-lation by the federal government is not good merchandising. The licensing of all dealers In foodstuffs, both wholesale whole-sale and retail, will eventually tend to stabilize tho inarkot, but In so doing, many merchants are going to lose a lot of mo'ney. "To illustrate: Supposing I bought 100 cases of canned corn at $2.40 per case, anticipating a rising market. Suppose the market should go to $4.00 per case of com. I am making a good profit on them, even though I sell them under the market price. "On the other hand, suppose that the market should decline. I lose money on the corn. I then have to sell something else at a profit to overcome over-come the loss on the corn. That is good merchandising and has been the rule ever since there were merchants. "Now comes the government, regulating regu-lating the prices, and providing for but a reasonable profit over the 'cost price. Lot me again illustrate to show what happens. , Only Reasonable Profit. "We will use the same Illustration that of tho corn. In anticipation of a rising market, I laid in 100 cases of corn. The market advances. According Accord-ing to the government ruling, I am allowed al-lowed a reasonable profit. All right, a reasonable profit on a can of corn is 2i cents. I sell the corn that cost me 10 cents for a gain of 2J cents. In other words, I can sell two cans for 25 cents and make the reasonable profit. "But here is my competitor who did not lay In a supply of corn. Tho market has advanced to ?4 a case. He has to pay that, but Is only allowed the same profit as I am. The result is that while my corn lasts I will be able to sell, while he will have no market, being forced to offer the goods at a higher price than I do. Thus it will be seen that the man who is unable un-able to buy ahead of the market will soon be forced out of business. "The regulations of the government will bo a great help In doing away I with futures, however. With the prices calling for a certain per cent of profit, no matter what tho price paid for the goods, there will be no object ob-ject In a retailor buying a largo order in anticipation of a rising market. Consequently, Con-sequently, he will order but a small ! amount of each commodity, because then he will not have to go to the trouble of storing tho goods. The wholesaler will not have a large stock on hand, and consequently the pro-udcors pro-udcors will be the ones to do the storing. stor-ing. Where we formerly ordered, say 100 cases of tomatoes at a time from the local canning factory wo will now order but a few. It will not matter what we have to pay for them from the standpoint of profits, as we will be allowed to realize but a reasonable amount on each sale. Consequently, in a reasonable time, there will be no ' futures and no underbidding or underselling. Regulation Killed Profit. "I bought a shipment of flour earlier In the summer for sale when I flg- jured the price would take a big advance. ad-vance. The price advanced all right, but the government fixed another price so low that I am forced lo sell each sack of flour at less than I paid for it, while had the market been allowed to tako its course, I would have made a nice profit That was good merchandising, merchan-dising, according to the meaning of the term, but when something unforseen steps in, we are bound to lose money.) It is only a question in my mind whether the market will stabilize be- : fore the smaller retailers are forced out of business. I "It was the best means the government govern-ment could devise to conserve food 'supplies and at the same time keep, the cost of living within reasonable limits, and although it is bound to work a hardship on someone, I am positive it will work out for the benefit bene-fit of the majority in a short time, in spite of the fact that the scheme does not conform to the rules of good merchandising." mer-chandising." "Mr. Wilcox stated that Ogden is somewhat behind other cities in getting get-ting the retailers' licenses, but that they were wired for and the blanks had been filled out and should be returned re-turned any day now. |
