52 



tail prices as to the products at, for instance, 25 cents, 

 which leaves you with a contemplated profit which doesn't 

 materialize. 



PROFESSOR CHENOWETH : These are the only Gov- 

 ernment figures I have used. 



]\IR. JENKS: I know, but I am not speaking so much of 

 jour figures to-day as of the bulletins that are now being 

 issued to give us data on cost of production at home, ex- 

 clusive of labor, and then hold up the retail price. My point 

 merely is that a man wants to stop and think twice before 

 he thinks that the ditference is all profit. I should think you 

 could allow 50%, and still have enough for a safe profit. You 

 can cut your retail price in two, and then show a profit. 



PROFESSOR CHENOWETH : Yes, that is so. 



MR. JENKS : Well, then that's all right. There are two 

 ways of figuring that profit. One is to give a man good pay 

 for his time, figure the cost of what he would have to pay 

 for labor, and then get a managerial profit on top of that, 

 which is another thing. You figure one way that a man 

 would earn j1^8 a day; figuring the other way he would earn 

 nothing. If he has got to pay a man $2 a day to do that 

 work and then get a profit for himself on top of that, it 

 makes a difference M^hether he earns $3 a day or actually 

 gets one dollar a day over the other cost for himself. 



THE PRESIDENT : If he can hire a man at two dollars 

 and gets three, that is a pretty good profit. 



PROFESSOR CHENOWETH: That is if you can hire 

 a man for two dollars who is competent and trustworthy 

 enough to do this work. 



THE PRESIDENT: In a larger way you would have 

 several men. A great many would be at less than tAvo dol- 

 lars, with a man at perhaps three dollars to supervise. As 

 soon as you put it on a larger commercial basis you reduce 

 your labor cost. I should be perfectly willing to back up 

 Professor Chenoweth if you had a real good product and 

 could get in touch with the proper grocers who would be 

 willing to handle it at a reasonable profit. I know they are 



