Show I PRICE FIXING BRANDED AS SOCIALISTIC N R A Retail Code Opponents I Charge Fiat Regulation of Merchants CHIEFS DENY STATEMENT Control Held Necessary to jo Stop Ruthless Methods By H. H 0 O T THOMPSON Copyright 1933 by United Press WASHINGTON Sept 21 PrIce 21 Pric fixing in th the n national recovery recovery- program program program pro pro- gram tends toward state socialism i iwas it was charged today as as' as price regulation regula tion features of the proposed N R B A code for the retail trades became the center of debate over price control control con con- troll me measures ures 1 Opponents of f price fixing declared de de- de dared it could not be operated sue sue- except where state socialism social social- ism was an avowed objective N R A officials who prepared the revised retail code maintained it was Intended to regulate or control prices but not to fix them to any rigid for or mula Present discussions of prices tend to tp include e a any y form orm of price regula regula- non uon under the broad term tenn of price fixing In reality there are are- cant differences Under strict price f of r e each cn ch article in the retail tr trade e would be set by fiat NO PRICE FIXING In th the retail code as it is now constituted con con- there are no such roch provi provi- The code states slates In order to check cheek predatory price cutting and minimize retail operating operating operating ing loss losses resulting and in order to assure that the retailer shall be at least partially compensated for forthe forthe forthe the service he renders the consumer on and after the effective date of this code no retailer shall offer for sale sell exchange or give away any mer merchandise chandise below a minimum price which shall be the wholesale delivered er ered d price with the addition of a charge of 10 per cent The code does docs not guarantee a 4 10 per cent profit to the retailer nor does docs it prevent him from charging more than the wholesale price plus 10 per cent The ultimate price will willbe willbe willbe be determined by the same ame factors as at present with the the- exception that ruthless price cutting for competitive Uve tive purposes will not be allowed The exceptions to to the tho sto stop loss provision provision provisIon pro pro- vision includes highly perishable merchandise mer chandise imperfect or damaged merchandise mer merchandise chandise sold as M such bona f fide ido disContinued dis- dis disContinued disContinued Continued on Pare Pan Three PRICE FIXING BRANDED AS SOCIALISTIC Continued from froni Pace Page One ODd continued lines advertised and sold as such merchandise sold upon liquidation liquidation dation and nd merchandise nd sold or donated donated do do- for lor charitable purposes A school of ol thought within the theN theN N i R A Is opposed to price c fixing by flat fiat as ns opposed to price control or regulation This school includes Includes' Dr Alexander Sachs Sacks head of th the econom econom- ic C c research division It maintains that price fIxing in the strict sense with certain exceptions is undesirable uness unless unless un- un less ess state socialism i is desired The exceptions wo would ld be j i 1 In cases of natural resources where conservation is desired 2 In farm larm products where con con- of downward trends would result In conditions of 3 In cases where prices and wages sho should ld be regulated to prevent sweatshop sweatshop sweat sweat- shop conditions s I |