Although  it  is  impossible  to  accurately  state  the  percentage  of
increase  in  the  net  profits  of  dealers  affiliated  with  the  Eastern  Fed-
eration of  Farm  Machinery  Dealers,  some  idea  of  the  results  of  co-
operative effort  may  be  inferred  from  comparison  of  the  percentages
of  gross  profits  of  those  dealers  compared  with  other  dealers  of  their
own  section  and  of  the  United  States  as  a  whole.  The  increase  of  47.7
per  cent  in  gross  profits  in  1918  over  1916  for  the  country  as  a  whole
is  reflected  in  an  increase  in  the  percentage  of  net  profits  to  net  in-
vestment for  the  dealers  from  which  financial  reports  were  secured.
In  1916  the  percentage  of  net  profit  to  owned  capital  for  all  classes
of  dealers  was  12  per  cent ;  in  1916  it  was  20.5  per  cent.  In  computing
these  percentages,  interest  paid  on  borrowed  money  was  allowed  as
an  expense  of  retailing.  Assuming  equal  efficiency  as  retailers,  and
no  greater  increase  in  dealers'  expenses  in  the  East  and  South  than
elsewhere,  it  is  very  evident  that  the  increase  in  percentage  of  net
profit  to  owned  capital  would  increase  even  more  rapidly  than
would  be  indicated  by  the  higher  gross  margin  realized  as  the  re-
sult of  cooperative  control  of  price  competition  in  territory  covered
by  the  Eastern  Federation  of  Farm  Machinery  Dealers.
Local  price  agreements. — In  a  statement  submitted  to  the  Com-
mission on  October  1, 1918,  Grant  Wright,  secretary  of  the  federation,
stated  that  the  federation  had  "at  times  issued  suggested  prices
based  on  the  general  selling  expense  and  cost  of  the  goods."  In
accordance  with  this  general  policy  of  the  federation  regarding  the
formulation  and  use  of  uniform  price  lists,  numerous  local  clubs
have  engaged  in  local  price-fixing  activities.
