Evening star., 1915-11-23
Associated Clubs Make Appeal
to Federal Trade
Commission.
SPEAKERS AT HEARING
SHOW UNFAIR METHODS
Government Charged With Aiding
Evil Unintentionaily Through Its
Defective Postal Regulations.

Pleas for the help of the federal gov
ernment through the federal trade
commission in driving unfair and fake
advertising methods out of the chan
nels of commerce were made at a pub
lie hearing before the commission at
the New Willard Hotel today Repre-
sentatives of the Associated Advertis-
ing Clubs of the World appeared be-
fore the body and pointed out some of
the unfair methods of advertising
which they declared had the effect of
producing unfair competition. They
pointed out that in their opinion the
organic act OF the body gave the COM
mission the power to regulate such
unfair competition
In the course of the statements the
United States government was charged
with being one of the greatest Of
tenders in ai,ing unfair competition.
This was brought about by permitting
firms to use the mails in So-called get
rich quick schemes, although the
speakers admitted that the issuance of
fraud orders served to correct this to
some extent But these. they pointed
out further. came only after public
confidence had been destroyed.
Honest Business Injured.
Herbert S. Houston Of New YORK was
the first speaker. He declared that the
methods of fake advertisers created
grave abuses, whicn served to injure
honest business men. He outlined the
work of the advertising clubs in at
tempting to correct this evil, explain
ing the work of the national vigilance
committee, together with the state Wig
lance committees, which attempted to
search out and correct false statements
IN adNertisinsr. The club was helped
to large extent by the laws of thirty
Two states.
Much is accomplished through moral
Suasion on the part OF the vigilance
committees. according to Mr.. Houston,
who said that when q piece OF fake or
misleading advertising was discovered
the advertiser was communicated with,
10 the end that he usually corrected
the advertisement in question.
He declared that he had been in
formed by the solicitor of the Post
Office Department that up until last
June fully $239,O0 900 had been taken
away from the public of this country
by mail order concerns against which
fraud orders had been issued. He as
serted that il was the opinion of the
advertising association officials and
members that these vigilance committees
could be the means Of gathering def
mite, frst-hand information against
mail-order concerns which were en-
such cases, he said, would be interstate.
That this is a great abuse, he added,
il realized by the Post ONCE Depart
ment and the advertising clubs.
He asked for u ruling or an express
sion of the commission TO whether
il was willing to receive any inter
state cases, which are constantly COM
ing to the attention ow the clubs. He
said the clubs could become an ally
OF the commission.
Examples of Unfair Methods.
James Keeiey. editor of the Chicago
Record II erald. read excerpts from
number of letters of firms, in which the
telief was expressed that false adver-
tising was unfair competition He
spoke of the method of Chicag de-
partment store for preventing false ad-
vertisting from creeping into its
copy.
In addition to instructing the heads
of the various departments to tell only
the truth. the store maintained three
censors who reviewed the advertising
copy" carefully. Then ii employed two
women who went around each day to
see that the goods were just as de-
scribed in the advertisements and "if
the were not then the buyer in that
.,.ticular department would certainly
ar frcm it,
&c spoken lie is private. but the
hted lie is public. said Mr. Kelley.
IRE is no such thing a white lie
! print, for all such are black lies. All
4, he continued, should be restrained
dishonest acts in unfair advertis-
?
rinted misstatements, for business
Iposes, are destroyers of public con
! 'rnce
Eewspapers and magazines. he went
Or. are common carriers, and their
s'1ce is open to all, said Mr. keeley
ne should be allowed to Use them
except for legitimate business To use
them otherwise is unfair competition
and diminishes the value of one of the
greatest public utilities.
Watch Dealer Is Exposed
H j. kenner. executive secretary of
the national vigilance committee gave
a number of instances of fake adver-
tislng uncovered by the national con- =