Imperial Valley press., 1938-10-30
News Behind
the News
GrOcerS Protest
Want Only One Price
By RODNEY BUTCHER

WASHINGTON. - The proposed
tWo-price system for farm products,
although no specific plan has yet
been advanced TO bring crop sur
pluses within the reach of power
ty-ridden consumers, already is
drawing the fire of national organ
izations of grocers and other re-
tailers.
Reactions of these groups include
outright hostility. fear for the
present economic system. sympa-
thetic skepticism, Bronx cheers and
plain boredom.
Although powerful lobbyists for
chain stores. independent stores,
department stores and other retail
outlets often fight among them
selves. this is one time when they
appear to be unanimous-in lack
of enthusiasm. Some prefer to re-
serve judgment pending specific
proposals. The others say, in gen.
eral. that the scheme is prepos-
ferrous. Closely in touch with some
of the top top men in AAA now
wrestling with the problem, some
are confident that the reaction of
retailers to the idea already has
doomed it.
1T was just a trial balloon as
serts the head of one great retail
federation referring to Secretary
Wallaces discussion of the two
price theory at press conference.
Now That they know what we think
of it, they'll forget it,
The National Focd and Grocery
Conference Committee, represent
ing six large national grocer asso-
Citations, wired Wallace to express
grave concern" and urged that
nothing be done without careful
consideration = and consultation
with the committee.
Wallace's office replied that Wal
laces projection of the tWo-price
idea could hardly be considered
plan, but rather a suggestion open
for discussion And at present,
the committee was advised, there
was scarcely anything to discuss.
A tWo-price system for food
couldn't endure because the higher
price level would soon descend to
the other, says Executive Vice Pres
ident John A. Logan of the Nation
al Association of Food Chains.
The American people just aren't
that magnanimous,' Logan asserts.
When one price level sought the
other a huge number OF grocers
would be ruined A program of
government food sale would auto
matically slow up the distribution
through the regular trade channels.
Merchants and wholesalers could
make no commitments until they
knew what price levels would be
and what they could sell at. The
buyers for the top 'tWo-thirds'
would slow up and farmers would
be worse off than before
Hector Lazo, executive vice pres
ident Of the Cooperative Food Dis
tributors of America, says "the
whole scheme is fantastic from sew
eral standpoints." He also insists
maintenance of a tWo-price policy
is impossible. Even with identifi-
cation cards, Lazo believes, there
would be bootlegging.
Although anxious not to form
any hasty judgment" General Man
ager Lew Hahn of the National Re-
tail Dry Goods Association thinks
it seems inevitable that any two
price system would eventually be-
come a one-price system with ali
prices descending to the lower level
knowledge that a large segment of
the population need not pay pre-
vailing prices would tend steadily
to cause other consumers to resent
the higher prices they had to pay,
Hahn said.
Grocer representatives DIN
they have no quick answer to the
problem of farm surpluses and un-
dernourished families. Lazo says
families with $1,000 or less income
more than half urban familiif aver
age less) don't get enough to put
in their bellies" and that terrific
social danger" exists. He thinks
perhaps the eventual solution may
lio II, on,citronr pooAara tivas