Evening star., 1933-09-20
TWO RETAIL CODES
REVEALED BY N.R.A.
Minimum Price 10 Per Cent
Above Wholesale Included
in Drafts.

Two codes of fair competition, one
covering the general retail trade and
the other drug stores, were made pub
lie today by Deputy Administrator A.
D. Whiteside of the N. r. A. with the
announcement that they were now up to
Hugh S. johnson for decision.
AS finally drafted the codes carried
the uch-controverted price-control
provision framed so every merchant
would be required to keep his minimum
prices at 10 per cent above wholesale
delivered price, of any merchandise ex-
cept for special sales.
Whiteside told newspaper men this
could in no sense be construed price
fixing provision since no profit could
enter a retail transaction unless the
merchant obtained Is per cent above
wholesale price.
Will Limit Losses.
He said its value would rest primarily
in limiting retailers losses and pre-
venting continuance of "loss leader"
selling by which merchants attract Gus
toners with low-priced goods in the
hope they will buy items carrying a
much higher profit.
The general or master code was SUD-
mitted for 10 classes of retail trade:
department stores, furniture stores,
stores, limited price variety stores, mail
order houses. mems clothing, music
stores, shoe stoes and women's speciality
shops
1t would become effective on the
second Monday following approval by
the President.
Administration of the code would be
in a retail trade authority consisting
of the N. R. A. Administrator or his
deputy, three members appointed by
President Roosevelt, all to sit as men,
bers without vote of the national retail
trade council.
Divisions in Council.
The council would consist of at least
one and not more than three repre-
sentatives of the following divisions of
the trade: Dry goods, furniture. hard
ware. limited price variety, mail order,
mems clothing, music, shoes and any
other major divisions which may be
designated later.
The representatives of the council
would be elected by the national trade
association representing these divisions,
the vote to be conducted by a method
approved by the administration.
Merchants throughout the country
hope for speedy approval of the code
they signed a month ago. Benjamin
Namm chairman of the Committee OH
Unfair Practices of six national retail
associations. told Deputy Administrator
Whiteside, in a letter Monday, accord
ing to the New York Times
The letter has not yet been made
public by Mr.. Whiteside. but from
New York it was learned that Mr..
Brooklyn, expressed appreciation We
all feel for the patience, understand
ing and high sense of duty that have
characterized your attitude toward us
during the past two months" He said
he had been prompted to write by
many letters and kilograms from mer-
chants both large and small in all
sections.
Would Speed Code.
"I beg leave" he said in part, "to
convey to you their hopes and fears
in connection with the retail code.
They hope for speedy approval Of
the code that they agreed upon at the
hearing in Washington a month ago
and which you referred to, on August %,
as the, greatest trade agreement ever
drawn
They fear that the various fair prac-
tice provisions, which were advocated
by every speaker at the hearing, except
one, will be either emasculated or
eliminated. In that event, it will be
impossible for great number OF re-
tailers to absorb the increased labor
costs provided for in the code and re-
main in business.
May I point out that there are
more than a million retailers in the
country. that they employ upward Of
100000 people, that their average
loss last year exceeded S cents on
every dollar of business transacted.
May I also point out that, judging by
a recent survey made by the National
Retail Dry Goods Association, 96.6
per cent OF retailers suffer from pred
atory price-cutting by competitors, that
875 per cent of retailers suffer from
misleading advertising by competitors
suffer from general and continuous un-
derselling claims made by competitors:
Will Relieve Evils.
"The fair-practice provisions that we
ask to have approved will go far
toward clrbing these primary evils.
There are, in addition, many Sec
ondary evils still to be curbed.
The paragraph barring general un-
derselling claims is not oppressive, as
alleged. In this connection the Ma
tlOIldl HoSOCldtlOll VI DEUEL. ouo1llCoo
Bureaus has stated: This provision
will not prevent honest advertising of
goods at low prices in competition. Our
experience, however has shown that
advertising claims of continuous under
selling contribute to cutthroat compe-
tition.'
THE latest revised retail code. as
printed in the New York Times of
September IA, indicates that general
underselling claims are to be barred
only if they are inaccurate That
weasel word completely destroys the
force of the paragraph.
Not Submitted by Retailers.
'"There has been much discussion OF
the so-called drug price-flxing' para
graph that also appeared in the re-
vised code, as printed in the New YORK
Times of September IA. I know that
I need not remind you that this para
graph was not submitted by the retail
trade.
It feel sure that I speak for prac-
tically every retailer when I urge that
the retail code be approved by Gen.
johnson at the earliest possible mo-
ment and submitted to the President
for signature. Last year the retailers
of this country sustained net loss OF
over $1,000 100000, largely due to un-
fair competition"
PEER AND AMERICAN GIRL
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