The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-04-29
TRADE LEGIsLATION.

The Manufacturers Association Of st.
Louis has issued protest against a hill
now pending before the Missouri Legisla-
ture ostensibly aimed at department
stores" The bill is entitled AN act to reg
ulate business and trade in cities hav-
ing a population of 10000 or over. de-
claring it unlawful and making it
misdemeanor 10 transact business in vio-
lation of the provisions thereof. and pro-
viding a penalty for such violation The
title of the bill is calculated TO raise doubt
as TO its wisdom. Legislation that at
tempts to regulate and control trade in con-
travention of natural lines is apt to prove
a failure. The pending bill divides the va
rious branches of trade that naturally ex-
list in towns of 1000 population or over,
into classes and groups making seventy
three classes, twenty-eight groups and a
large number of sub-grades the object be-
into separate branches. 1t then imposes
license tax of $500 a year on every person
or firm dealing in any one line of goods
and an additional tax of $500 for each addi-
tional line OF goods dealt in. The object of
the bill evidently is to impose on depart
ment stores so many separate taxes, and
In the aggregate so heavy a burden as to
drive them out Of existence But the Man
ufacturers' Association says il will have
very different effect. They say it will
drive thousands of retail dealers in single
lines of trade out of business. thereby fur
Their concentrating business in the hands
or the department stores. decreasing compe
tition and increasing prices to consumers.
They say further that it will injure manu-
facturers by lessening the number of COM
petitive buyers. thus contracting the mar
ket and placing the manufacturer subject
to few large orders at small profits. The
protest says:
One of the principal reasons promoters Of
the bill urge in favor of its passage is that
the department stores sell their merchan-
disc too cheap, and want TO create a So
called protective measure TO kill off COM
petition. For Democratic Legislature to
shows that they have not fully investigated
It's wide-reaching effect. Legislation has
been asked to destroy trusts and the Dem
ocratfc aprty is pledged to prevent combi
nations whose intent and purpose is to raise
prices 10 the consumer. and this bill is di-
rectly aimed to crush out competition by
vantage over those who do not. The de-
partment stores at which this legislation
Is aimed by parties in interest would in the
end be the gamers. the large ones could
stand the tax, and the small dealers would
be swept out of existence. Any one going
over the list of names here published can
readily understand the effect of such legis-
lation. Within six months after the pas
sage of the act many of these stores would
either be closed and stocks sold out to the
department stores, would go into bank
ruptcy, and be sold out by the sheriff.
The incident illustrates the danger of leg
islating from a single point of view or upon
imperfect information. In fact, 1t illus
trates the danger of all class legislation.
Department stores have their advantages
as well as their drawbacks. Like trusts,
they are a natural result of high CONNER
cial conditions and accumulated capital
Probably it would be better for the public
at large, for small dealers and purchasers
if they did not exist, but the question is how
to prevent them.