The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-10-27
COST-PLUS FEATURE
OF RETAIL CODE is
FAVORED BY GROCER
Head Of State Food Merchants
Says Farmers Would Bene-
fit From Action

Belief that the farmer would have
been benefited by inclusion In the re-
tail code OF clause providing for q
minimum makeup was expressed here
Wednesday by A. w. Gussner, local
merchant and president of the North
Dakota Association Of Retail Food
Dealers.
Discussing the retail code, Gussner
said:
North Dakota merchants. and in
particular the food dealers, stand for
the adjustment of retail methods
that tend to depress markets of agri-
cultural products. The adoption OF
the cost plus plan would eliminate the
sale OF Loss Leaders, an acknoWl-
edged unfair practice. In the food
lines, items used for Loss Leaders
are almost invariably a direct pro-
duct Of the farm or orchard upon
which the minimum of processing has
been placed.
Legitimate retailers attempting to
compete with loss leader offers on
these items are compelled to make a
definite effort to purchase such items
at lower price to compete with the
Loss Leader merchant. thus unWill-
ingly depressing the market for such
commodities.
Items selected for Loss Leader in
the food lines are usually; butter,
eggs, poultry. lard, sugar, fresh and
canned vegetables and fruits.
Before the general Loss Leader
practice was established it was the
policy Of every retail merchant to
purchase large volume OF his sup
plies at the peak of production. such
merchandise as he knew he would re-
quire over all extended period. thus
taking off the market the surplus
supply. Today no conservative retail
er dares store a supply Of any farm
commodity for fear of a raid on the
price by the Loss Leader advocates.
"A seven and one half per cent
guarantee over invoice does not guar
antee a profit for the legitimate re-
tailers operation, as it covers but a
portion Of his overhead costs. 1t does
prevent an unfair raid on the market
OF any given commodity. whether it
be milk, butter, eggs, poultry. lard.
flour, etc. almost direct product OF
our own farms, or sugar a product of
the beet districts, or apples, oranges,
peaches and canned fruits and vega-
tables, the products Of other states
that depend upon agriculture.
Would Halt Bear Raids
THE producers interests are best
served by eliminating bear raids in
every retail market in the country. II
seems impossible that the. represen-
tatives OF the producers on the MIRA
board cannot see that there Is ar
opportunity to help the agriculture
interests by the adoption Of the cost
plus feature Of the retail code.
The retailers and producers In.
terests IN an agricultural communal,
are inseparable. and no retailer car
prosper when his customer, the farm.
err is suffering constant raverses.
1t is my understanding that fol
the present the cost plus feature is
eliminated from the adopted retail
code, but We do feel that it should
be incorporated when next modifica-
tons and changes are made.
According to reports coming from
Washington it would appear that the
greatest pressure for the elimination
OF the invoice cost plus feature Of
the retail code has been brought by
the leaders Of the farmers organiza
tons representatives OH the NRA
board. In fact, it appears that they
are determined that, unless a COS,
plus basis can be furnished for the
producers Of agricultural products
there shall be no cost plus feature in
corporated in any code.
On the face Of it, one can very
readily understand that a farmers
individual costs are very difficult tt
determine, and not only vary widely
from season to season but also be.
cause OF variation in weather, soil
manner OF operation, etc, and be.
cause Of this no figure could be sci
up that could be depended upon t
serve any appreciate number of pro-
cucers accurately, as the variation
would be wide throughout the coun-
try. Therefore, their particular prob
lem must require greater study tc
arrive at the proper solution.
The retailer has the advantage oil
knowing his first cost to the frac.
ton OF a cent, taken from his in.
voice cost. and invoice cost, without
any operating or overhead, is thu
base for computation as recognized
IN the proposed retail code.
1t IS our position that farmer
should be paid well for his services
but We maintain that the loss leader
feature as covered in the cost plus
plan should not be eliminated be.
cause of the fact that direct farm
relief cannot Immediately be put into
effect.
1T is recognized fact that thu
retailers of foodstuffs have beer
slower to advance their prices thar
those IN other lines and in most in.
stances the individual merchant has
up to now, absorbed added cost O,
operation caused by his compliano.
with MIRA"