Evening star., 1933-09-24
.GROSNER ANSWERS
!. RETAIL CODE FOES
Says Stop.Loss Provision Of
Pact Is Life.Saver for
Merchants:

Coming to the defense of the pro-
posed retail code. and, particularly to
its stop loss" provision, Gerald D.
Grosner, proprietor of the mems wear
establishment which bears his name
and president of the National Associa-
ton of Retail Clothiers and Furnishers,
expressed surprise yesterday at criticism
it has evoked.
The code he amplified, was prepared
after months of careful research and
study; 1t had been checked over care
fully and was unanimously adopted
by the eight national retail organiza-
tions, representing 100000 retailers,
who filed it."
N. r. A. Cites Support.
At the same time. a statement was
issued by the National Recovery Ad-
ministration, declaring thousands OF
kilograms" are coming in from retailers
urging adoption Of the code with the
stop loss provision incorporated Ito
put an end to cut-throat competition,
and adding that retail druggists are
urging prompt action on the individual
code for this line of business.
Not more than 10 per cent Of the
kilograms from druggists suggest any
important change" the statement said.
Both codes now are under preliminary
study bv Gen. Hugh S. Johnson, the N.
r. A. chief, who is represented as de-
sirous of seeking the reaction OF the
country on them.
In his statement, Mr. Grosner said:
The stop loss provision which pre-
vents the sale of merchandise for less
than wholesale delivered cost plus 10
per cent is exactly what it is named
namely. method of preventing all mer-
chants from taking any greater loss
than is provided in this provision. 1t
is not price fixing in any sense OF the
word. 1t is loss fixing.
Flayed IndividualiSm.
1--WE have tried the system of rugged
individualism. and 1t has brought this
country to its knees. That is one of
the reasons why the N. r. A. was Gre
ated-to stop merchants from continu-
ing to destroy each other and them
selves II one of the many price wars
now starts all parties engaged in it
will know just at what point they will
have to stop. The important thing to
remember is that it is these price wars
in all lines that have been the depres-
sing influence in all markets and that
put prices. wages and industry into
the tail-spin from which there seemed
to be no recovery until the N. r. A.
was created.
The stop loss provision will not. by
any stretch of the imagination. stop
free and open competition. but may
perhaps save some merchants from de-
struction. During the months of de-
liberations on the code. the 10 per
cent stop loss provision was practically
unanimously acclaimed by merchants
all over the United States As mat
ter Of fact. the only question that was
raised was that the 10 per cent should
be made higher. In all our delibera-
tions. We never received a single re-
quest that it should be eliminated from
the code
The provision of general undersell-
ing claims in the fair practice provisions
are also Of vital necessity to the sue
cess Ct this code and the N r. A.
These underselling claims which have
filtered into almost every town and vii
lage of this country, and which we're
always controversial. could never be
proved. They did nothing but set the
retailers at each others throats. We
have seen hundreds Of instances when
claims Of this kind were fully investi-
gated that they were found to be alb
solutely untrue.
The public must understand that the
merchants of this country have assumed
heavy burden in cutting hours OF