Evening star., 1943-05-05
Consumer Confusion
Seen in Plan for
Grade Labelling
Ad Club Hears Views
Of Canning Industry;
Officers Nominated

OF Canning Industry;
Officers Nominated
Grade labelling to stamp such
classiflcations as A, B and C grades
on canned foods is opposed by the
canning industry, according to Hap
per Payne of the National Gamers
Association, because it would result
in confusion" on the part of the
public, a threat to production" "
and would have a Strong tendency
to take away initiative and enter
prise" in the industry.
Speaking to the Advertising Club
Of washington at the Capitol Park
Hotel yesterday, Mr.. Payne, who is
director of labelling of the associa-
ton, assured his hearers, however,
that there was nothing in pending
legislation, so far as he knew, to
eliminate brand labelling, or to
obilerate well-known trade names
Mr.. Payne, discussing Mandatory
Grade Labelling and Distribution. -
said at the outset that his industry
would consider a period of imitation
nothing less than a tragedy" and
hence was "unalterably opposed to
movements that would speed inf1a-
ton. We favor control" he said.
But, he added, unless prices are
established in relationship to the
true character of the product, we
will have so-called left-handed'
imitation"
The price structure, he recon-
mended, should be matched up with
the character of merchandise under
specified prices"
The real quarrel" of the indus
try with the Office of Price Admins
tration, Mr.. Payne explained, is the
industry's objection to labelling
canned goods by the grades of A. B
or c, meaning such as fancy,
second-grade or third-grade goods.
Despite some difference of opin-
ion in his own industry, the speaker
said, "All are opposed to a grade
stamped on the label of can as
a means of price control"
Explaining why the industry
thinks such labelling would result in
confusion on the part of the con-
sumer, Mr.. Payne said the OPA has
established as a base for controlling
prices the fob. price at the cannery,
with the country divided into re-
gions. All Gamers in each region
are to price like commodity at the
same price, he pointed out.
When the wholesaler buys from
the Gamer, he adds the freight
rate, and when the retailer buys
from the Gamer, he adds another
freight rate and each is allowed a
specified "mark-up." But the speak
er explained this results in varia-
ton of prices on the grocer's shelf
on the same grade of goods.
For instance, he said, grade A
corn in washington, simply because
some of it might have come from
the Midwest. or Maine, or nearby
Maryland or Virginia, might be
variously priced at 16, II, 18 or 19
cents can, depending on how far it
had to travel. BY this same system
of control based on transportation
costs, he pointed out the housewife
might find that she would find a
grade B corn priced higher than
some grade A corn, in the same
store
Fears Effect on Confidence.
Il don't see how that can be any
thing but utterly confusing to the
consumer" he declared. House
wives probably would complain to
the OPA, and the net result would
be a lack of confidence in the food
industry as well as a lack of conf
dence in OPA."
Another objection to grade label
ing, Mr.. Payne said, was based on
the fact that grades to be estab-
lished were supposed to be those of
the Agricultural Marketing Admin
istration, with which the average
Gamer is not familiar, whereas the
Gamer is responsible to the Food
and Drug Administration for proper
labelling.
There is something about the A,
B, and C grades. Mr.. Payne said,
that gives the public an impression
of inferiority in those below A. The
industry opposes such labelling be-
cause, he said, cit has the connota-
ton of lowering Standards" In
stead. the industry would prefer such
as fancy" meaning "best," select" :"
meaning better, and standard" !"
meaning good" This would have,
he said, "the opposite connotation. ="
Pending proposals for mandatory
grade labelling, Mr. Payne charged,
would have tendency to take away
initiative and enterprise, which is
so vital part of our American way
of life, which has stimulated i'm
provement of product and lowering
of COST"
Another method is favored by the
industry, he said, requiring a grade
on the invoice to establish the price,
so the goods could be matched with
the invoice. avoiding a label on the
can. This would be "sounder, safer
method" Mr.. Payne contended. But,
he added, OPA did not favor it be-
cause OPA feared "upgrading''
would put lower quality goods on the
market at higher price.
Louis D. Krakow, advertising
manager of District Grocery Stores,
who was renominated for president
of the Advertising Club. warned
that the subject of grade labelling
was highly important. Grade
labelling he said, 'is not confined
to foods, but can be carried to many
extremes, and would affect all of us. y
Nominations Closed.
Nominations for officers were closed
after presentation of the report of
the Nominating Committee headed
by w. Frank Gatewood, so that the
officers for next year virtually were
chosen at yesterdays meeting. The
formal election, however, will be
held May 49,.
George B. Kennedy, sales anc
promotion manager of R. P. An.
drews Paper Co., was elevated from
second to first vice president, ano
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