Salt Lake Telegram | 1933-10-24 | Page 1 | New Battle Looms over Retail Code

NEW BATTLE LOOMS OVER RETAIL CODE Lin Lines s Drawn f for r Showdown on Price Control Issue COST r PLUS tS P PLAN AN LOST i Tr Trade de A Authority thorit o to Work Out Markup Formulae D Dr BY Associated Pre Pren WASHINGTON Oct 24 The 24 The TheN N R A today announced appointment appointment appointment appoint appoint- ment of a trade authority to administer administer administer ad ad- minister the retail code Louis Kirstein of of- William Filene Fl Fi- lene lerie Sons company Boston company Boston with Leo chairman of ot the N NR NR NR R A labor advisory board and Mrs Mary Harriman Rumsey chairman of the c consumers consumers' board were reelected reflected Br nr United Press Fress W WASHINGTON Oct 24 Battle 24 Battle lines for a new fight over oyer retail price control were being drawn chawn t today day in trade circles and the N R AFar A- A Far from rom disposing of the issue a am m master t retail code pro promulgated ulga ed yesterday yes yes- by the president to take effect next Monday seemed merely to have defined the limits within which the controversy now will be fought to a fin finish h. h Knocking out an original provision to ban sales of goods at less than wholesale cost plus 10 per cen cent the code forbids sales at less than cost with the added declaration added declaration that the sell selling n r price of articles articles' to to the cori con consumer sumer should include an allowance for tot actual wages of store labor Jabor to tob be fixed and published from time to time by the trade rade authority Stores vy yih vi n five or fewer in towns of less than 2500 are exempt not only from this but put from all other provisions of ot the code Chief Issue Now The issue affecting all other stores now is how much of the labor costs the trade authority will decide should hould be included in in the prices es below which goods cannot be sold Those within the N R It A who fought to tol the last for the cost plus 10 per percent percent percent cent plan expressed confidence that the m markup to be recommended by bythe bythe bythe the trade authority would be close to that hat figure They believed it would prove more acceptable when presented pre as it now will vill be as a markup to cover part of actual labor costs The trade authority of three members members members mem mem- bers is expected to be appointed quickly It will have the assistance of a national retail trade council composed composed com com- posed of members of or each division of retail trade N R A officials favoring a substantial minimum markup expressed expressed ex ox- pressed belief that these agencies would lose no rw time in working out the necessary formulae Those opposing mandatory markups cont contended that development of or formulae formulae formulae for for- covering overl g labor costs was likely to prove so complex and controversial that it would be bc a long time before anything along this line was done See Notable Victory Despite the provision for markups the consumers' consumers advisory board and other agencies which fought the cost plus pitis 10 per cent plan felt they had scored a notable victory There is no expectation that an any markups ordered will vill include all nIl labor labor la la- la bor costs For the estimated I stores of pC all kinds kindi in the nation last year car commerce department calculations Hons show that their payrolls equaled per cent of their net sales In addition to the price battle N R A faced laced a problem in enforcing the retail retail retail re re- re- re tail code Next Monday it will become become be be- come ome binding regardless of whether the thc stores signed the temporary blueeagle blue blueeagle eagle cagle agreement The only exceptions lions are the small town stores exempted ex cx- empted by presidential order and grocery stores which are to be covered cov coy ered in a separate code now v pending bet fe the farm relief elief administration