The evening world. Newspaper, May 7, 1920, Page 3

CLOT i FROM Th Rasa ‘ Wool Grower, Speculator, Manufacturer, Dealer and Labor All “Grab.” NEAR R PAYS THE BILL. Federal Taxes Used as Lever for Boosting Prices—Book- keeping Hides Figures. By Martin Green, Leaving Boston and coming down to New York in pursuit of the in- trinsic value of a suit of clothes sold to the wearer at from $60 to $65 is} something like traversing’ Broadway from City Hall Park to 110th Street im an endeavor to find who is pro- fiteering on Prohibition hooch sold at from 35 cents to $1 a drink. At the end of the trip the net result is confusion. I have taken the first trip and as soon as 1 get the conclusions there- from off my chest | am going to take the second. 1 shall obtain more imental relaxation in the society of iMegal manufacturers and merchants who are skinning me individually and: admitting it than in’ the society of} legal manufacturers and merchants | who are skinning everybody and) denying it | Profiteering is, | am convinced, ,| lat the base of tho high cost of | living as it affects men’s clothes— profiteering, from the man who handles the wool and speculates in it, to the man who makes the | i j | cloth and speculates in the man who handles the cloth and speculates in it, to the man who handles the manufactured pro- duct and speculates in it, and finally to the worker who pro- duces the cloth and the finished garment and speculates in his productive ability. And the pro- fiteering is hidden behind expert bookkeeping and “trade secrets.” I can't say what the profiteering Percentage is because in my investi- gations as a newspaper reporter I have no powers of subpoena, A com- petent United States District Attor- ney, with all resources of the Government command, could start where I rted—in the wool market of Boston and the mills of New England and come down to the fi s of New York City and Kochester, and go further, to the fac- tories of Chicago and Baltimore and drag out to public light just what is aken in taxes, business and govern- ment off the bare backs of wearers of clothes before said wearers put upon their flayed skins the garments they purchase, . THE PROFITEERING LEVERAGE OF FEDERAL TAXES. xes! Federal taxes! hey comprise the multipowered x that is boosting the cost of liv- og av to men's clothing and every- th Take my case as an illus- tration I pay in Federal and State income taxes an amount equal to my egening capacity for over two weeks in the year. I work physically two weeks out of the fifty-two for Uncle Sam nd the State of New York because I um a salaried man; I am not a pro- Gucer, and 1 don't sell any material thing, I sell the words you are read- ing now to an employer Who pays me 4 wage that is, to me, satisfactory, In my contributing capacity I pay ) the taxes of my landlord, of the York Telephone Company, of the ectric Light Company, of my grocer, my meat dealer, my tailor, my barber, I contribute to the taxes o! everybody from whom I or my wife buys anything in the way of comfort or luxury. My only comeback is a bate I get every year on my life in- urance premiums because the gentle- men who yun the Insurance companies make so much money that, after they taken off thelr incomes and they can afford to hand me back something to the accompaniment of felicitations to themselves on their business ability We are wandering from the propo- sition of profiteering in clothes, but 1 think we are. wandering along a trail that cannot be followed by any profiteer secking to prove that we are headed in the wrong direction, Yegterday I ypoke to the labor-cost man of a big New York clothing fac- tory. He said that the labor expénse on a suit of clothes in his estublish- ment had gone up 65 per cent. in two years, and that since 1917 the pro- ductive capacity of the factory had been reduced 40 per cent. because the Ww ison nave taxes, workmen lie down on the job and refuse to toil to tbe limit of their capacity. "The 65 per cent. of Inbor cost in- crease,” I said, “is, of course, taken are of in the selling price of your woods.” “Obviously,” he replied. “We vorul€n't be ‘here otherwt: Now,” | continued, “on the matte: of Sour production Joss. Say in 1918 yeu produced 4,000 sulle a Week and | the ph 3 inc RICES AR UTS HENRY J. SPARROW, BUSINESS MANAGER | OF “YANKEES,” DIES 2 $ 3 é 4 P| + 4 | York Baseball Official Victim of Heart se. parrow died at his emont View Apart West 127th Street of » Cols, Ruppert the club in Jan at the Yankees’ ck yesterda for home, where at 1,30 this morning he complained of a pain ove His sister sent for a doc clan had arrives bu had di your profit on cach Your gross profit wa week. “This year, with your same work- ing force, you having added to your selling cost the increasing percentage of wage expense and your averag profit on a 1918 basis remaining at $10 a suit, you find yourself, because suit was $10. $10,000 for the of loating workmen, reduced to an output of 600 suits @ week. Do you still figure on and realize the old profit of $10,000 a week on a 40 per cent. reduced output?” “Sure,” replied the labor-cost man HIGH FINANCING BY THE PROFITEERS. So the situation bursts right in the consumer's face, as it illustration to follow this manufacturer sel direct to cus- tomers from his own retail stores. Since 1918 he has added 65 per cent. to the because of h tures for labo Since 1918 he has added 40 per cent. to the price of his goods be- cause his labor is 40 per cent. minus efficient, A total of 105 per cent, a little more than doubling the price of a rice of his goods increased expendi- suit of clot on the labor item alone, But this is not all. In 1918 his extra Federal taxes were prob- ably a little more than they are now. He added those taxes to the selling price of his com- modity. He had to raise, in 1918, and robably will have to rai n Before long, the pay ot fhe sales- | tT EYBA PROHTEERS ALL ALONG LINE E SHEEP TO WEA BOOST COST OF MEN'S Great manager of | Shortages aggregating $98,000 \ Yember by the American Trust Com- INDICTED I $98.00 SHORTAE — Moran Charged With Falsify-| ing Records of Long Island Institution —Ex-Teller Held. Robert D. Moran, Great Neck Hills, Neck, L. I, formerly assistant the Long Island City Branch of the Queens County Trust a get ; Company, to-day surrendered to Dis-| an explanation of the charge of $12,- 302 Central Park West. triet Attorney O'Leary of Queens County on an indictment found yes- terday in connection with alleged Moran, according to the District Attorney, was interested in the Par- amount Motors Corporation, No. 265 West 64th Street, Manhattan, while he was assistant manager of the Trust Company, when the motors concern " borrowed $40,000 vf the Trust Company's money, The mo- tors concern was liquidated last De- pany, according to O'Leary. ‘The formal charge against Moran ts UPAENRY'SSI7O00 DIES SUDDENLY. STK OSS TONY TAGE woes Soe) Police Inspector’s Brokers Will Disposed of Noted Cases Dur- Be Asked to Explain Wall | ing His Twenty-eight Years Street Trading. | On the Bench. When the Grand Jury investigating 1 vlee conditions reconvenes to-day, It ; yearn’ a leading figure on will ask a representative of the P Stock Exchange firm of Block, Ma- in. this city, Aled at B80 loney & Co. of No. 74 Broadway, for o'clock this morning at his home, No. He taken il suddenly at 9.80 o'clock yes- r Judge Rufus B. Cowing, ‘or many the bench was) 962.58 to profit and loss with which the account of Police Insf&ctor Dom- inick Henry was closed Jan. 21, 1919. As has been told, the Inspector has lost heavily in Wall Street in recent years, and his attorney, Bouri® Cock. terday morning, falling to the floor, and never regained consclousness. The funeral will probably be held Monday morning at the First Baptist Finance Committee of the Lincoln last four or five years, including the Sate Deposit Company of East 42d omount charged off to profit und loas, Street. He had also been a member were nearly $50,000, much of which 18 of the Union League Club since its accounted for in the analysis chat has " ; Widow, five been made, The Inspector's trial on founding: He leaves a winw, ute a charge of neglect of duty in failing sons and two daughters. hes It is believed Henry's loss9s in the : , naaies to keep his disti‘ct free frm disor-| son, Bdward K. Cowing, is Deputy falsifying bank records. Justice La-/ geriy houses is set for Monday. ) Clerk of the Court of General Ses- zansky fixed his bail at $10,000 | When an auditor of the Stock Ex- pied ® which was furnished by Henry Muff, |change firm appeyred, ten days ago, a North Beach hotel keeper. William E, Eldridge, Cashier for the Long Island City branch, which has been taken over by the American Trust Company, against whom an in- dictment was returned at the same time as that against Moran was out on $%,000 bail. The specific. charge against Eldridge is that on Dec. 2 1919, he accepted a deposit of $3,830 from Henry M, Deitz and credited it to the account of R. M. Dunton. He left the employ of the bank in December, and said he was working for a large downtown trust compeny when arrested. He expreseed sur- prise, and told the detectives he he could not understand why he was arrested, as he had done nothing against the law, and only had obeyed instructions when he was bank. It was said in support of his ssertion there is evidente that he lived mogestly at No. 33 Foriey Avenue, Elmhurst, Harry A. Kahler, President of the Trust Company, said; “There is no’ question about the defalcation. Our situation is that we are covered by a surety company's bond, and the American Trust Com- pany has recovered fully the amount of the defalcation, We no longer are interested from a financial stand- point. Information that came to-day in- timated that when the defalcations were discovered they ran above $100,000, but some of the loss was re- trieved by seizure of property in which one of the men under indict- ment was interested. fliaibiabanse hie Be 75 WOMEN TO GO TO G. O. P. CONVENTION To Fight at Chicago for Equal Representation on the National Committee. CHICAGO, Ma publican Headqua 7.—Reports to F show that se te} en- in the! ithe only explanation he gave of the| Judge Cowing, who came of a fam|- charge of profit and loss was that it|yy of judicial officers, three of his} was customary for the firm, at the fee te ik Close of the year, :to wipe off its bad | Nearest relatives having served debts, The firm’ permited Henry to the high courts of other States, sat a he came within 60 votes of + \feating the Tammany candidate for Assembly in the Twenty-first Mstriet. which had previously gone Democratic by 3,906. By a large majority be was elected Alderman-at-large in 1876, end was the Republican member of that body ap- nointed to investigate the Tweed “Ring.” By reason of failure at re-election to the Coart of General Sessions, Judge Cowing returned to the practice of law in January, 1907, witb his son, Rufus B. Cowing jr. LATEST BOOZE QUOTATIONS IN THREE CAPITOLS Whiskey 20 Cents in London; High- balls 30 Cents in Cuba, and “Hooch” $1 in “Dry” N. Y, London wins. Md Whiskey sella there at 20 cents a drink; cocktails, 30 cents; white and red wines, $2 @ bottle; good champagne, $4 @ bottle, ; ‘i In Havana cocktails are 36 cents; lran, has explained that the inoney Church, rita ait Mets Wesel highballs, 30 cents; champagne, $6 @ with which he speculated was re- and the Interment wi . “\ bottle; Bacardi rum, 30 cents, ceived from an aunt, who died sev-/#wn. In “Prohibition” New York whiskey years ago. Judge Cowing was a’momber of the |is available at 75 cents 4 drink, with n jdiluted concoction at 60 cents to $). |(n many high class restaurants they charge $2 for “highballs that contain jonly about 20 cents worth of whiskey, leven at present price = Platt on Federal Reserve Board, WASHINGTON, May 7, — Edmund Platt, Representative from New York, vas nominated by President Wilson to to member of the Federal Reserve Board. ([™ ANCRE 7 reopen his account in May, 1919, with- on the bench of the Court of Gen out, so far as appeared, the deposit of | 441 sessions in this city for twenty- any collateral, On this account he | eee ea in that. time made a few suocessful deals, from | | which it appears he drew $2,400. posed of many cases, some of them The analysis shows Henry's losses! 47 great importance, such as those of the Manhattan Bank robbers, the occurred in trading in a wide variety | Chastine Cox murder trial and the of stocks, but he was a consistent trader in ‘copper securities, including cases of three firebugs sent to prison | for life. Inspiration, Miami, Ray Consolidates, He was born in Jamestown, N. Y., Braden ind Kennecott issues. Th ‘in 1840, was educated at Dartmouth examination made covers his 1c College and in 1865 was graduated from tivities in the market while he was a Captain, in 1917, and in 1918 and 1919, after he became an Inspector. wis initdicated thet Henry deal"! Harvard Law School. - In politics hy business Block, Maloney & ceeded Jan, 1, 191% His account with the new firm was opened with a debir balance of about $30,000 against which | he held 300 B. R. T., then worth about | $84 a share, and 500 Inspiration Cop- | per, worth about @ share, making | a total of about $55,000, | In two years, it is indicated, all of | this had been lost and Henry owed | the brokers, the $12,000 which was | charged to profit and loss. He had put in $5,500 in cash in the two years, and when the account was closed is | said to have given the firm a check | for $7,000, $1,900 cash and 3600 worth of Liberty bonds, which were sold for $572.37. ‘The analysis intlicated that | the total losses with Block, Maloney & Co,, amounted to nearly $47,000, Sig ancients CAR DERAILED ON BROOKLYN BRIDGE Inaugurate GENUINE Traffic Tied Up Half an Hour Dur- ing the Morning Rush Hour. When a Flushing Avenue trolley car was at the anchorage of Brooklyn ty-flve women have as delegates to the National Convention. This number will be increased somewhat | by later primaries and convention: ‘ady been chosen | at- Five of the women are deles | large. Of the States sending women, New York leads with twenty-two. Mis: sourl is second with nineteen, Other States will send: Minnesota, seven Kansas, six ; Oklahoma, four; Kentucky, three; Utah, two; Michigan, four; Iowa, two; Llinols, one; Arizona, one; Ten- nessee, two; Soush Dakota, one, and North Carolina, one. Equal rights for all will be one of the issues to confront Republican lead- e hen they mect here Monday to everybod: alee! cee in ie rea eth hie celiing [straighten out the knots in the It organization. He has put that | publican party in preparation for the additional expense of the cost on | national convention. the consumer of his goods. And finally, in this instance, he has increased his own profits ma- terially in this way: on the national committee. Women, it was stated, will make stand at Monday's meeting of the com- mittee for “fifty-fifty’ representation Two women ah nay, he, Hqures that hie busine, /now are allowed the privilege of “sit- we He ret makes allowance for [ting in at meetings of the committve all his taxes and sinking funds but without voting power."* ind amounts to take care of his —~ | inventory an rinkage an a cee depreciation possible in the event Seekens’s Ropelation Valle oft, of a reduction of prices and he WASHINGTON, May 7.—The Census adds those to his selling price. Bur toxlay announced the popula In addition he capitalizes for 20 | tic Spokane, Wash, as 104,204 per cent. profit his 65 per cent. is the only large city so far additional labor cost and adds ed which suffered a population that to his selling price—a boost e since 1910, ‘The, loss was 195 of 13 per cent. Then he capitalizes for 20 per cent. profit his 40 per cent. reduc- tion in output and adds that to his selling price—a boost of 8 per cent. Finally he raises his own salary and the salaries of others in the corporation and puts a few rel, tives on the payroll and increa his advertising outlay and passe out a lot of bonuses and charges all these expenses against profits and beats the Government out of its taxation percentage on that ‘| Gross expenditure and make: ood to himself by delivering jecture somewhere criticising the extravagance of the American people. | We can't dodge taxes ‘and we don't want to dodge just taxes. But we don’t want to be taxed without repre- sentation, and ttat is what is hap- | pening to us under the present sys-! tem of levying Federal and State taxes. The ostensible object of war taxation—and we ave war taxation to-day just as we had it In 1917—was to nick a substantial wedge out of each dollar earned by traffickers in necessaries and luxuries by reason of the war, to keep the burden off the ultimate consumer, What has happened is that it is the 7 emaciated doilar of the ultimate con- sumer that Is nicked, and the dollars f the traffickers are bigger and glomsier ad more prolific than they were Wefore the was, 0.2 nt AAT CAN Jujube Jelly Mounds—Adsolutely liclousness! Portions of the very Jelly, moulded and then daintily stu of giinting, erystal sugar granu Sugar Rolled Dates— Ly eos 2 “Getter Chocolates ata Lower Price” MILLER'S Br®ige at 8.30 this morning, it lett the wood flooring of the bridge and ran onto the stone of the anchorage ‘The rear truck left the ralis, throw- MAIN FLOOR ing the car off the track at such a tangent that it blocked all traftie. The few passengers were badly 750 HIGH CLASS TWO TONE shaken but none was injured BANDED SAILORS AND MUSH. bridge to the New York sid } OC 00! finally to — the Manhattan-bound ROOM HATS. GOOD VALUE — tracks and roadways. rolleys at{f4 = AT $7.50. — Sands reet were stopped and blo: i Heketa/ Issued to passengers, who.| Ki T . . crowded with the rush ur thronms, | fi OMOFTOW 8 Flushing. Avenue’ car wan Bul back Economy Price on the tracks and the in cleared. HIGH PRICES DRIVE SPAIN TO DISCARD ||: HATS AND SHOES |} | Campaign Started Among Wealthier | ' People Is Spreading | Fast. CORDOYA, Spain, May 7 Tomorrow considerable tradesmen. perturbation A MOVEMENT started in the f surrounding districts among ba = 71 © a ae the wealthier people to go we = without hats and also to wear sandals made of hemp in protest | against high prices is spreading throughout southern Spain e hi Hundreds have joined the silent | ‘ac among 150 Hig DIES nounds of super-de arest, pi for Women Milk Chocolate Dates You'd think a caravan Ti ; TKO tects just come in from ae ae sd Bile Cbonoiate ric Werooe tande ent 4 Broudwey | creimy, utterly und en A pricefe: 535 irely “delectable ‘ir Baik As rt word, Miller's supreme beat anged them, | 640, Bren brand—forms the coat of rolled them; and the At Bleecker these plump, pulp: 0 ‘ 742 Brow pulpy Dates powdered ~~ Extra Spec at A product Extra Special their sur: A440 Broadway | of the very faces with = GOS 1045 Beta, | finest can- 490 crystal ont Be eae, | dyoraft ar- pound nox sug » Net Weight Ureknan & Ann.” | tists, Net Weight TRICOTINE Milk Chocolate Marshmallows —. fuff of soft, miiky. 54. oe _ Night-as-a-puft marshmallow artfully tinetured ‘with Cc VELOUR dash of vanilla and then encased in a blanket of Mi Po qupreme Milk Chocolate. You'li-retish this cave wend Bee, he dis- 47-49-51 West 42d St. SALE ~ 500 OF THOSE BEAUTIFUL SUM. MERY CHAINSTRAW FL. IN ALL THE SPORT SHADES. SOLD UP TO NOW AT $5.50. | Reduced for Economy Day S™-AVENUE ATS6™STREET Second Moor -Take Elevator Clearance SUITS Actual Values to $57.50° Tomorrow 325 Saturday With the Genuine: aver CHEESE “Sue ‘wouldn't tell us the name of that fascinat- ing cheese she serves on nut salad—you'll guess it when you read this ad.” * Made by SHARPLESS, PHILADELPHIA Tomorrow a ECONOMY ° ATS, 2 8 Pie h Class and Misses POIRET TWILL CHECKS / aon t % The Home of «0 Famous Brands of Men's ¥, and oung Men's Clother Orttod Breeduey) Tt] aldorf Hotel “Senior' “Junior” The Predicted Break Has Come! — Sale of 4100 Suits! AND 312 TOPCOATS, At Nearly 40% From Regular Prices $9G50 For Suits and Topcoats Originally. Made to Sell at $40° For Suits and Topcoats Originally Made to Sell at $50 “41> For Suits and Topcoats Originally Made to Sell at $65 At the very outset let us correct any wrong impressions which the headlines of this ad- vertisement might convey that the day of lower prices is here. Existing conditions}, 27 prove that nothing could be farther from " the truth. : It is a positive fact—much as it is to be regretted— ‘4 that the identical grade of Suits offered in this sale at $26.50 are quoted at $35 wholesale for Fall, and those at $41.50 are costing $50 at wholesale. ‘This state- ment will stand the closest investigation. But for the moment an uphéaval in the wholesale market, due to vastly decreased demand, has caused prices to drop almost 40%. Realizing that this was only a temporary condition, we seized upon the chance and purchased over 4,000 garments to sell at the above amazingly low prices, If you act quickly, you can save enormously, 15 West 4th Street Over Liggett’s Drug Store (Between 5th Ave. and Broadway) ' Opp. Waldorf Hotel