The Washington times., 1935-05-29
BOOKS, DRUGS
LEAD SLASHES
IN NEW YORK
Cigarettes Sell at II Cents in
Some Stores; Wages, Hours
Kept Up Temporarily

NEW YORK, May 20 GN.S).
The general confusion over the
outlaWing of the NRA by the SUI
preme Court continued to be
manifested today in steadily drop
ping retail prices.
The falling prices were not con-
fined to any particular mer'
chandise fields.
One department store offered
four popular brands Of cigarettes
at 80 cents for 10 packages, while
small stores slashed the prices OF
individual packages for 13 cents
to II.
Books and drugs were two OF
the first commodities to feel the
effects of price slashing.
Price War Expected
In the wholesale and textile
fields definite trends toward lower
prices were seen.
One of the most sensational de-
velopmentS in the wake OF the
Supreme Courts decision occurred
in the four basic textile markets,
cotton, woods, rayons and silks.
In most instances quotations were
withdrawn yesterday and buying
came to an abrupt standstill.
Raynold Riggie, executive Secre-
tary Of the retail code authority,
predicted that a price war would
Snread through all the retail
trades by tonight. He said he be-
leved small merchants would be
driven to the wall by wage reduc-
tionS and heightened working
hours in the big stores.
One of the largest department
stores in New York city, r. H.
Macy & Co., announced, however,
that the schedule of wages and
hours it had adopted under the
MIRA would continue pending de-
VelopmentS which we hope will in
sure the permanence of these i'm
portant social benefits"
Pledge Of Employers
Numerous other big employers
of labor were reported committed
TO similar policy.
Among these were the National
Association of Wool Manufact-
klrers, Automobile Dealers Asso-
cation, General Foods Corpora
6ion and the Cotton Manufact-
g,Eerss Association.
Depa rtnent store executives
pointed out that no orderly course
couid De followed IN fixing retail
prices until the general situation
stabilized itself.
Independent shops and "cut
price" specialists would institute
an cratic furry in all prices,
which would create confusion and
change prices on staple articles
from day to day, they predicted.
Big Day in Stocks
Financial markets today were
expected to indicate whether the
drastic price fluctuations expe-
rienced yesterday had fully dis
counted the changed conditions
brought about by the NRA ruling.
Wall Street was inclined to look
for another day of heavy dealings.
However, further liquidation was
believed possible in stocks of in
dustries where elaborate provi-
Sions Of code control had been
built up on the fear that price cut
ting and wage slashing might be
resumed with resulting unsettle-
ment to prices. The copper, oil,
coal, steel, fertilizer and textile
industries were among those men,
toned as falling in this classifi-
cation.
On the other hand, the rail and
utility groups, were expected to
offset whatever unsettlement
might be evidenced elsewhere in
the market.
Commodities Upset
To add to the general con-
fusion was the financial crisis in
France, which appeared to be
growing worse. The possibility
that the franc would be devalued,
or a gold embargo declared were
developments which were ex-
pected to force stock market spec
ulatorS to the sidelines pending
the outcome Of the present diff
9icultieS.
The situation in commodities
presented another sore spot. There
had been heavy buying in recent
months by large corporations de-
SirouS Of building up inventories
as a protection against possible
imitation. Small traders had also
turned to the staple markets as
offering better profit possibilities
than were available in stocks.