Evening star., 1938-11-13
agencies in support Of the re-
Quired legislation.


quired legislation.
Some of the physical require
ments Of the program are already
under way through inclusion in
the p. w. A. allotments to tho
District. There are, however,
other building projects required
for which no provision has yet
been made.
Many of the other matters will
require enabling legislation and
some will need provision Of ad-
ditional personnel. The COM
mittee is anxious to get full civic
support in this work.
Chain Stores Threatened
With Extinction by Taxation.
"A bill to impose an excise tax
on stores in the District of CO.
lumbia and for other purposes"
was the innocent title of a bill
introduced in the House of Rep
resentatives early in the 18th
Congress by Representative
Schultz, Democrat, of Indiana.
The bill was referred to the Dis
trict Committee and to a sub
committee, but got no further.
This bill, which was aimed at
chain stores, was not sponsored
by any of the local civic groups
and was probably inspired by a
desire to use the District as a
guinea pig for experimental or
propaganda purposes. There are
indications that the bill will be
reintroduced this winter and that
there will be a similar one of ma
tional scope. The champion Of
such legislation is Representa-
tive Patman. Democrat. of Texas.
who has declared his intention of
fighting vigorously for enactment
of such laws.
Few of the local organizations
have gone on record on this
proposal and these have opposed
it. This legislation is not in the
list tentatively submitted to the
Commissioners to assist them in
framing a District of Columbia
legislative program for the next
Congress. 1t is not expected
that any of the civic groups will
request its inclusion in the pro-
gram.
The plan of the proponents is
to impose heavy and increasing
taxes on chain stores, based upon
the number of stores operated.
The bill pending in the 18th
Congress would impose tax of
$50 each on two stores. $50 where
there were three stores and in
ascending scale until the max
imum of $1,000 each was levied
where there were 100 stores. This
would not mean that these an
nual license fees would be de-
termined solely by the number
of stores of the chain operated
in the District of Columbia, but
such fees would be based on the
entire number of stores operated
by the chain, wherever located.
OF course the stores away from
the District would not be re-
quired to pay the local license
tax in the District.
1t is expected that the various
organizations will make a careful
study of this proposed extinction
of the chain stores, with a view to
taking positive action on this
question. The general senti-
ment among consumers appears
to be one of opposition and there
is an inclination to be prepared
for the inevitable show down"
on the chain store question.
1t is reported that a survey for
the Federal Trade Commission
shows that food and drug chain
store prices are from 6 to 1872 per
cent lower than independent
store prices. These lower prices
are possible through the mass
purchasing power of the chains
and the cash-and-carry policy.
The chain store patrons are not
required to pay for the heavy
losses through bad credit which
must be distributed among those
who pay, where the system Of
charge accounts exists. Delivery
service is, of course, a heavy cost
item which cash-and-carry pa
irons of independent stores are
required to share.
Among the most conspicuous
opponents of the movement for
the extinction of the chain store
through excessive taxation is the
American Federation of Labor.
Housewives generally are lined
up against it, not only because Of
the purchasing power of the dol
lar in such establishments, but
through the wider choice of
fresh high-grade merchandise
available in the chain stores.