Evening star., 1933-10-28
SALES CODE ISSUE
NO NEARER SOLVED
A. A. A. Leaders to Scrap
Some of Provisions Affect
ing Food Dealers.
By the Associated Press!

BY lne hSSOCldleO EIcSo.
Officials of the N. r. A. and the
Agricultural Adjustment Administration
today continued to find their view
points on retail sale codes at odds so
far as the food and grocery distribution
industry Is concerned, and their dill
ferences are expected to be placed be-
fore President Roosevelt for settlennt.
The new controversy developed when
A. A. A. leaders decided to scrap some
of the major provisions of its code lot
grocers and food dealers, intended as a
companion piece to the N. r. A. retail
code.
Unless the codes are harmonlzed,
merchants with can OF shoe pollsn
on one shelf and box OF ralsins on
another will find the two articles SUD
iect to two separate and distinct sales
codes at sharp variance with one an
other in some respects
Farm officials, who opposed the nat
retail mark-up plan, are now equally
opposed to the N R. A. retail code pro-
vision that "the selling price OF articles
to the consumer should include an al
loWance for actual wages OF store LABOR,
to be fixed and published from time to
time by the trade authority"
Sales Below Invoice.
They are ready to prohibit sales OF
foods and groceries by retailers at less
than invoice cost which they said was
the essence of an agreement reacheo
recently by Secretary of Agriculture
Wallace, Farm Administrator George
N Peek and Industrial Administrator
This aereement came after the farm
administration had made clear its op-
position to a minimum mark-up OF 1i2
ner cent over delivered cost to grocers
and 10 per cent for other retailers. But
farm officials said yesterday that the
trio reached no agreement that retailers
should include a wage allowance ana
that they believe this Will leao 10
higher prices. :.
Farm officials are concerned over in
creased prices to consumers and recog-
nize as one of the chief causes OF farm
tmpatience with the recovery program
is that prices to farmers have ADVANCED
more rapidly than prices OF commool-
ties farmers sell.
It is estimated that the food and
grocery retail business represents
roughly one-third of the retail dlstrl-
button industry. The N. r. A. cooe
exempts stores with five or fewer en-
nloyes in towns of less than $500
population. Farm officials expect TO
approve similar provision.
President Roosevelt signed the N:
r. A. code, and his signature also viii
be necessary before the food code be-
comes effective. 1t comes under the
Farm Administration for action
through an executive order issued early
in the Summer placing powers to ad-
minister the N. r. A. act in the case
of foodstuffs-with. the exception of
labor provisions-in the hands OF Sec
retary Wallace.
Other Phases Opposed.
Objections to other phases of the
n r. A. retail code besides the wage
allowance have been raised by farm
officials, who are considering two
courses in presenting their recon-
mendations to the President.
The first may be a recommendation
that the N. r. A. retail code be amended
to eliminate those provisions which they
consider Objectionable. The second and
the most likely recommendation will be
that the food code be approved in the
form in which they finally present 1t
with principles in the N. r. A. code of
which they disapprove eliminated.
The N. r. A. code becomes effective
Monday and in event it leads to price
increases to farmers, as farm officials
fear. they expect to ask for prompt
elimination of some of its provisions.
Peek has made it clear that he has
two principal policies in guiding the
farm program-first, to prices of farm
products; second, to protect consumers"
He has said repeatedly that Il do
not conceive of it as my duty or desir-
~ hot tryo Iictr
button SYSTEM" and that Unless code
or marketing agreement brings some
assurance of better price to farmers
II has no place here"