Show I Wallace PI Plan Enrages es Retailers ers I By Rodney Od Dutcher WASHINGTON The The proposed 1 two-price two system for farm products products products prod prod- although no specific plan Has lias yet been advanced to bring crop surpluses within the reach of ridden poverty-ridden consumers al already already already al- al ready is drawing the fire of national national national na na- na- na organizations of grocers and other retailers Reactions of these groups in include include in- in clude elude outright hostility fear for forthe forthe forthe the present economic system sympathetic sympathetic sym ym- pathetic skepticism Bronx cheers and plain boredom Although powerful lobbyists for chain stores independent stores department stores and other retail outlets often fight among themselves themselves themselves them them- selves this is one time when they appear to be unanimous unanImous-in in a lack of enthusiasm Some prefer to re reserve reserve reserve re- re serve judgment pending specific proposals The others say in general general general gen gen- eral that the scheme is la Close in touch with some of the top men in ii A A A now wrestling with the problem some are confident that the reaction of retailers to the idea already has bas doomed it V It was just a trial balloon as asserts asserts asserts as- as the head of one great retail federation referring to Secretary Wallaces Wallace's discussion of f the two- two price theory at a a. press press press' conference Now that they know what we think of it they'll forget it it It ought to be worth at least half a million votes says another but I dont don't think anything will result from it V The National Food and d Grocery Conference committee representing represent represent- ing six large national grocer as associations associations as- as wired Wallace Vallace to express express ex ex- press grave concern and urged that nothing v be done without careful consideration and and consultation consultation consultation con con- with the committee Wallaces Wallace's office replied that Wallaces Wallace's projection of the two- two price idea could hardly be considered considered considered con con- a plan but rather a oa su suggestion suggestion sug sug- estion open for discussion And at present the committee was advised advised advised ad ad- there was scarcely anything to discuss A two-price two system for food couldn't endure because the higher price level would soon descend to the other says Executive Vice President John A. A Logan of the National Association of Food Chains The American people just arent aren't that magnanimous Logan asserts When one price Jevel evel sought the other a huge number of grocers would be ruined A program of government food sale would automatically slow up distribution distribution distribution dis dis- dis- dis through the regular trade channels Merchants and wholesalers could make no commitments commitments com corn until they knew what price levels would be and what they could sell at The buyers for forthe forthe forthe the top two thirds' would slow up and farmers would be worse off than before V Hector Lazo executive vice president of the Cooperative Food Distributors of America says the whole scheme is fantastic from several standpoints He also insists insists insists in in- maintenance of a two two-p two price ice policy is impossible Even with identification cards Lazo believes there would be bootlegging Its a wonderful idea on paper declares Lazo But in the end the government would either take takeover takeover takeover over the entire distribution of these products or the plan would collapse of its own weight There is not a single food distributor who is fool enough to to believe he can compete with Uncle Sams Sam's billions Average per capita purchase purchase purchase pur pur- chase of food and grocery products products products prod prod- through retail grocery stores is only for the entire United States The average family of four only buys of fresh fruits and vegetables a year If a maximum of 35 per cent margin for distributors were saved consumers consumers consumers con con- sumers would be saved 28 per family and the market for farm farm- ers in the now-established now channels channels channels chan chan- nels would be destroyed Of course the lower third one doesn't spend even 25 a year for fresh fruit and vegetables Although anxious not to form any hasty judgment General Manager Lew Hahn of the National National National Na Na- Retail Dry Goods association association association tion thinks it seems inevitable that any two-price two system would eventually become a price one-price system with all prices descending to the lower level Knowledge that a large segment of the population population population lation need not pay prevailing prices would tend steadily to cause other consumers to resent the higher prices they had to pay Iahn Hahn said Grocer representatives admit they have no quick answer to the problem of farm surpluses and undernourIshed undernourished undernourished un un- un- un families Lazo says families with 1000 or less income more than half the urban families families farni- farni lies average less dont don't get enough to put in their bellies and that a terrific social danger exists He thinks perhaps the eventual solution may lie in consumer consumer con con- sumer cooperatives But although he and others admit they see no immediate answer to the problem they dont don't believe of agriculture experts now deliberating deliberating deliberating will work out a feasible one either V |