SOME " PROFITEERING " FACTS. [FROM A POLITICAL CORRESPONDENT.] IN
some of his recent pronouncements Mr. Baldwin has expressed the opinion that investigations should be made with regard to "profiteering," and he has stated that, in the event of his return to power, he proposes to set up a Royal Commission to inquire into the whole question. For instance, in a speech to the members of the Junior Imperial League, he said : "I am not satisfied that in many of the articles of daily food the people are obtaining them as cheaply as they should."
The subject is a difficult and delicate one, and it is not possible to express a definite opinion on it at the present stage. But there are certain facts which un- doubtedly call for explanation, and I shall mention some of them.
Why is it that a frock costing 25s. is sold for 14 4s. ? I take this as an example of what appears to be going on in the clothing industry, and others could be cited. Knitted goods sold wholesale at 8s. 11d. are retailed at 40s.; velour hats sold wholesale at a guinea are retailed at 50s. each, and Fair Isle jumpers which can be bought in Shetland for 50s. sell in London for 15 apiece, and sometimes more.
The facts with regard to food are even more remarkable. The Linlithgow Report revealed the enor- mous disparity between the prices paid to the producer and those paid by the consumer. In many cases this is due to the number of middlemen at present required, rather than to the exorbitant profits of one particular retailer, and it is to be hoped that prices will be lowered in the near future by means of agricultural co-operation. A further element in the situation is the question of short weight. For instance, it is by no means incon- ceivable that owing to short weight given or the inclusion of wrappers in the weight of foods, or a combination of the two, the weekly shortage in a family of four persons consuming per week, say, 2 lbs. of fats, 4 lbs. of sugar, and 12 pints of milk, would be : fats, oz. ; sugar, 1 oz. 6 drs. ; milk, 12 fluid 07.S. These figures appear to be very small, but for a town of 32,000 families of the same average size, they represent a weekly illicit profit of something like 1.380. • I should like to give next the following figures relating to Argentine meat. The manager of an estate in the Argentine recently disposed of several hundred steers to one of the freezing companies at a price equal to about 34d. per lb. dressed weight at the present rate of exchange. To this price the freezing company has to add the cost of chilling, and freight home, amounting to about id. per lb. plus various other charges of transport of meat to Smithfield and selling commission. The meat probably costs the freezing company 40. to 41d. in Smithfield, the wholesale price there being about 5P. paid by the butcher. Doubtless much of this Argentine chilled is sold as home grown, but at any rate I find from the price list of a well-known retail shop that the cheapest price quoted for imported beef is 8d. per lb. (the brisket), rising to is. 10d. per lb. in the case of imported rump steak, and representing an average price of something like a shilling per lb. This is really rather staggering. Where do the profits go ? Into the pockets of the butchers' " ring " ?
On the face of it it would seem that the index cost of living might well be reduced by 25 points. But many facts have to be borne in Mind, such as the fluctuations in price, and the undoubted fact that many retailers do not make large profits. It is, however, obvious that without a careful and impartial investigation, it will be impossible to determine who is responsible for the very wide difference which so often exists between the cost of production and the selling price. And the Royal Commission, proposed by Mr. Baldwin, to ascertain whether undue profits are being made by middlemen or retailers at any stage between the producer and the consumer of essential commodities, is in the highest degree desirable. Perhaps readers of the Spectator have personal experiences with regard to this very important question ?
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