The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-09-15
COMPLETED RETAIL
store CODE READY
FOR PRESENTATION
Price Committee Now viii Con-
csntrats Upon Question
Of Control

washington, Sept. 15.-tR-A INA,
,v.revised draft Of the basic retaA
trade code, believed by officials 70 a..
ford protection both to the Consumer
and the small merchant, Friday was
to 20 to Hugh 8. johnson. NRA ao-
ministrator, for his analysis pelore
Submission to President Roosevelt.
johnson said he believed 1t woulo
be a week before the agreemens
could be sent to the white house.
The inter-departmental price COM
mittee, recently named to 1nvestlgato
the effect Of the MIRA upon prices, ne
said. would now concentrate on the
question Of price control, which IS the
paramount issue In the retail com.
pact. A
This code establishes 10 per cent
above wholesale cost as the minlmum
price at which a retailer may sen
goods, and also has 81 per cent as
count limit on trade-marked drugs
and toilet articles whose retail pr1ce
Is fixed by the manufacturer.
An idea under consideration at the
MIRA Friday was that non-govern.
mental board of impartial, prominent
citizens be appointed to observe oper-
ations OF the price control provisions
and determine whether the new ex-
pertinent is in the public interest. AZ
now drawn, however, the code con"
tains no provision for limiting opers
alton Of price control to trial.
Prices Should Be Lower
As seen by some officials, the mini.
mum price limit actually should re.
suit in lower average prices to the
consumer than the present. unregue
lated system. The price control
would eliminate the practice Of many
chain and cut-rate establishments Of
advertising "loss leader items, which
are few selected. well-known articles
sold at actual cost to attract GUS
toners into the store to purchase 9th.
er goods sold at considerable profit.
Under the proposed regulation
stores would not be able to sell any
article at a loss, and therefore Of.
ficials figure such establishment
would have to keep all prices down
10 a minimum profit to attract trade.
The master code excludes drug
stores, which are to come under an
almost identical separate agreement.
However, drugs sold by general stores
will be specifically regulated In the
general compact.
For Smallest Quantity
TIL formula adopted in the retail
:ode for defining wholesale cost "A
the price Of goods charged to the re-
taller for the smallest wholesale
quantity.
For instance, on canned goods this
would be one case.
Originally the code called for in.
voice cost as the basis upon which
10 per cent would be added to fir
the minimum retail price. This was
rejected because it would compel the
small independent dealer, regarded
as the backbone Of trade, to bind
himself permanently to maintain
higher prices than big competitors
who can buy from wholesalers at a
greater discount. The new formula
will permit the small dealer TO meet
the big competitors price, though his
profit may be smaller.
Profits, however, is not expected to
be made by anyone at the 10 per cent
level. Experts Of the government es-
innate that at depression wage and
employment levels, average merchans
dising cost has been 49, per cent
Under NRA's labor cost increases
the average is estimated at II to Il
per cent.