The Waterbury Democrat., 1938-11-14

sion II LnlS plll were 10 go through, he added.
 Consumer, producers and labor would suffer equally if the chain stores were destroyed, Prof. McNair said. He forecast a general price rise to consumers as the long-term re- suit of legislation designed to drive chains out of business.
 The educator declared that labor would suffer not only in the imme- diate loss of jobs now provided by chains, but in the loss of jobs in factories which depend on chain stores for the distribution of their products. Producers, cut of from chain store markets, would be forced to curtail operations, he added.
 Fears Depression
 "In my opinion" Prof. McNair continued, passage of the Patman bill would probably cause slump into a financial depression. The mere fact that it might be possible to pass such a bill is sufficient to shake confidence in recovery and create fear in the business commu- rity. Another immediate effect would be to reduce farm prices and lower agricultural values. The chains move an enormous quantity of food stuffs and enactment of this legis- lation would cause such major dis ruption of marketing machinery that many agricultural prices would go into new tailspin."
 Chasing the Patman bill as a proposal to protect the interests of a minority pressure group" Prof. McNair said that its adverse effects would be deep and lasting. He pre- dicted that if the bill passed there would be a fall in city real estate values, which would throw heavier local tax burdens on other business and on home owners.
 Labor Displacement
 Prof. McNair said that the labor displaced by enatcment of the Pat man bill would not be readily ab- sorbed and would tend to swell the ranks of the unemployed for very long period. He pointed out that chain stores sustain certain indus tries and that these industries would be forced'to suspend if chains were closed down by legislation.
 Consumers dollars would lose in value, if this bill were to become law" Prof. McNair said. 'In my opinion, the increased purchasing power of the consumer as a result of the chain store type of large scale distribution is an important factor in our economy. Destruction Of this added purchasing power would harm the whole country Prof. McNair called chain stores the biggest development of straight line distribution" from producer to consumer and declared that, in his opinion. the nation would not sur- render the benefits of such distribu- l tion.
 T think that the industrial revo- lution. so-called, has moved from the field of production into the field of distribution" he continued. T don't think that this country will give up large scale distribution and its ben- | efits."
 Needlessly Alarmed Prof. McNair stated that in his opinion many small retailers were needlessly alarmed over the possi- bifity of being driven out of business by chains. 'The census figures show" he said, that no more than a third of the total retail business of the country is in the hands of large scale operators, including chains, department stores and mail order houses; and there is clear evil dence that the rate of growth of large scale retail business has flat tened out in recent years. Chains have probbaly reached the peak of their development. and there will always be a place for the small in dependent retailer"