The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1915-08-07
The Right to Select Customers

Few decisions Of the federal courts
have attracted more attention among
, business men than that coming from
the federal district Of New York and
reported In the Tribune a few days
ago II is no eXaggeratlOn to say
that thousands Of requests have been
made by business men and attorneys
for copies OF the decision or detailed
information about II, This Is the
price maintenance case OF the Great
Atlantic and Pacific Tea company
against the Cream OF Wheat company,
the resale price Of whose product the
tea company cut till the defendant re
fused to sell TO the plaintiff
A careful reading Of the opinion OF
Judge HOugh In this case dIsclOses
the fact that the federal court has set
a limit 10 interference by congress
with the fixing Of price by vendors for
goods OF their own manufacture. The
right OF n marketer Of goods 10 sell
or 10 refuse 10 sell, is clearly estab
llshed and this, too, independent OF
the reasons for his action This de
cision In founded upon the funda-
mental right OF citizen to determine
AZ TO whether or not he shall enter
into a contract In his private bust
ness
Former decisions Of the federal
courts, which were against the right
10 fix prices at which goods could be
resold by the vendee, were In caseA
where II was attempted TO enforce an
alleged right OF contract between the
vendor and yendee with reference to
the resale price Of goods after the
goods had passed to the yendee, Such
decisions also concerned goods as TO
which the vendor had monopoly, be
cause he was the only manufacturer
Of such or similar goods These were
the socalled "Peruna," "Sanatogen,"
and the copyrighted book cases.
Even I'm such Instances II had begun
to be- felt that congress and the fed
eral supreme court had gone too far
In eliminating the right OF vendor to
to contract with his vendec as 10 a
resale price, and To correct this fault
the so-caled Stevens bill has been
urged upon congress, by which resale
contracts were permitted "A to
branded goods.
The Clayton net of October IL, 1914,
" now first construed In this Cream
Of Wheat case. II was claimed that
that net extended the previous prohl-
billions VI the antitrust acts to the
right Of a wouldbe vendee 10 compel
a sale and to prevent vendor from
refusing to SELL especially II the re
fusal was bused upon the ground that
the ycndec was an undesirable Gus
toner because he practiced cutprice
methods In hls rcsnles.
Judge HouRh holds, In substance
that the power of the congress To
regulate Interstate commerce does not
extend TO the power TO compel sale
Mt any price against the Will OF the
vendor. There ls no commerce TO he
regulated until sale has been made
and. furthermore, statute compelling
A sale would be unconstitutional. Ac.
cordInply. he construes the Clayton
act as not supporting the claim Of com.
pnlslon which was made In this case.
The ruling OF his decision applies
directly to every branded product,
such as flour or the products Of flour,
or any cereal where the brand does
mot represent the entire commodity, or
large portion thereof from which Il
il made. In substance n confirms the
right of any manufacturer as para,
mount 10 statutory prohibition, to So
lect his customers and to sell or refuse
10 sell to whosoever he pleases,