Evening star., 1933-10-09
Wholesale Food Group Also
Proposes Minimum Mark
Up in Trade.
PEEK'S VIEWS ATTACKED
BY RETAILERS LEADER
Pact Claimed to Be Product of rs
Per Cent Of Industry-Trade
: Groups in Row.
BY the Aseodaa ed Press.

by the AS000aeQ freS1.
Trade association men claiming to
represent rs per cent of the wholesale
grocers today asked approval of the
proposed master code for the food and
grocery industry calling for the eImina-
ton Of loss leaders," and for minimum
mark ups in prices to retailers and con-
sumers.
NJ L. Toulme, New York executive
secretary of the National American
Wholesale Grocers' Association, at a
the code and said a majority Of nom
members of his organization also ap-
prove Of it.
Clarence Francis, New York. president
Of the General Foods Corporation,
testifying as chairman Of the Associated
Grocer Manufacturers Of America, said
this branch of the industry favors the
code and its provisions for requiring
wholesalers to charge retailers the de-
livered cost Of products plus a minimum
mark-up Of 2l5 per cent.
Would Ban Loss Traders.
The organization favors the provision
that would require retail grocers to
charge a minimum Of 7l2 per cent
over the delivered cost of products to
them, banning "loss leaders" practice
whereby some products are sold at a
loss to attract customers in for pur-
chases Of other merchandise.
Meanwhile. c. j. Jansen, secretary
manager of the National Association Of
Retail Grocers, challenged a recent
statement by George N Peek, in which
the farm administrator indicated he is
out of sympathy with the mark-up
provisions provided in the code.
He said that Peek has in effect given
a Government Endorsement to profit
less distribution, cut-throat competition
and a continuation of those predatory
practices which have contributed largely
to the unfortunate condition of Aneri-
can agriculture today"
Agencies in Dispute.
The outset Of today's hearing resulted
in disputes among representatives Of
various food trade associations as to
their authority to speak for segments OF
the industry
Mays A Shattuck. Boston, represent
ing the United States Fisheries Associa-
tion, protested that the code proposed
inclusion Of fisheries products handled
by grocers. He said the association is
not prepared to support the code and
challenged Francis, who said some por-
tions Of the fisheries industries have in
dorsed the proposal
Price regulation at the corner store
was at issue as the Farm AdminiStra-
tons hearings began, for Peek, the farm
administrator. several times has indi-
Gated his opposition to such a price
stabililng provision in the code en-
bracing thousands of stores selling farm
products
Promises Finish Fight.
H. c. Peterson, head of the Grocers'
Association, yesterday promised a last
ditch fight" and Jansen in his letter
to Peek declared the latter's position
carries an unmistakable inference that
the National Recovery Administration
and the Agricultural Adjustment Ad-
ministration are not working together in
support of the Presidents program, but
are working at croSS-purposes." He
continued
1T Is all very well that the N. r. A.
should command retail grocers to cut
their labor hours at least 331s per cent; :;
that they must increase the rate Of pay
on pyramiding plan by shortening
hours and raising wages; but let us not
forget that those engaged in this es-
sential task of distribution must also
live
THE Blue Eagle blanket code for the
grocery industry is proving great
burden Practical experience is
proving that it cannot stand without
modification and without helpful sup
porting code provisions"
Peterson also charged in a statement
that Peek and Fred c. Howe, consumers
counsel among others, had packed
the jury against the food distributors
before they had been allowed an op-
portunity to present their evidence" "
Proposals Are Minimums.
The minimum mark-up OF 71a per
cent for which we petition the A. A. A.
does not assure a profit" Peterson
added. 'Nor does the 2ia per cent for
wholesalers, asked for in the code, sup
ply any guarantee that the wholesaler
can continue to exist. These are mini
NUNS. They provide degree of pro-
lection against cut-throat competition.
and offer efficient and industrious
business men a chance to continue in
business.
'"The mark-up provided in the code,
and which We insist upon, will reduce
prices to the public by curtailing the
prevalent practice of loss recuperation
in loss leader selling on so-called blind
merchandise.
I'VE contend that this principle has
been confused by A. A. A. officials as
a price fixing device. BY what line Of
reasoning they arrive at this conclusion,
since this is clearly provision for
minimums, Is beyond our comprehen-