The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-15

Designed to Chasten, Praise and
Counsel Commercial Men and
Interpret Interstate Laws

standard ol company dit ShS"S'"
in interstate m and can ne
regulated by the Trade Commission;
cut rate stores cannot be unless they
are selling to customers In and OUT
side Of the State In which they are
located.
A misunderstanding OF the law has
caused many business men to write
protesting letters to the commission.
Congress has no power over the IN
ternal affairs OF the States. II dis
astrous business conditions exist
within n State only the Legislature OF
that State has power to correct them.
Coming specifically to the functions
OF the Trade Commission the law m
powers II 10 investigate the organiza-
ton. conduct and management OF any
corporation, joint stock company or
combination Except COM
mon carriers) engaged In
among the several States and with
foreign nations" and ito gather such
information and data as will enable
the President Of the United States to
make recommendation to Congress for
legislation for the regulation OF such
commerce"
The commission IL now going from
city to city, East and West, holding
conferences with business mer over
the foreign trade Of the nation. by
and by 1t will consider in detail conn
binatlons and other conditions Affect
ing the foreign trade of the United
States" Measures will be taken to
prevent the dumping on the markets
of this country Of the surplus products
Of other countries at prices which can
not be met by American producers.
dumping Mr.. Davies says, by
foreign monopolies into the United
States, either Of their surplus products
or Of their competitive products, and
the selling of such products at a cost
in this country be.ow the prevailing
market cost in the country OF their
production is vicious in practice n
holds potentialities Of great harm to
American industry and to the Ameri-
can people.
american enterprise and industry
indigenous to our soil and native TO
our conditions MIR. Davies goes on to
say. ARE entitled to have such COM
petition of foreign monopoly declared
10 ne uIl1dlT anu W idNt SUM- Bio'
tees prevented II sought TO be en-
ployed." Australia has taken action in
this direction. How the Trade Com
mission will meet the situation is a
matter of the future. At best II will
be a delicate problem.
The commission can compel corpora
tons to supply reports. annual or
periodic. or such subjects as II may de-
sire information and to answer ques-
tons about their ownership, their
business methods and so forth. Like
wise the commission can make public
Except lists of customers and trade
secrets) such portions OF the infor-
nation obtained as 1t shall deem ex-
ped!ent in the public interest"
A new law of Congress prohibits
price discrimination" when the effect
may lessen competition or tend to
create a monopoly" Independent re-
finers have complained that the Stand
ard oil Company frequently reduces
its prices in certain localities far be-
low the cost Of production so as 10
drive its competitors out OF the mar
kets. The new law puts a stop to such
practices. and it's enforcement. in a
"oS' h"S ''''i a. NV uutN VI tilt
Trade Commission.
The same act prohibits tying rom
tracts" Such a contract means that
an exclusive sale or lease of goods,
wares. merchandise. machinery. sup
plies or other commodities. whether
patented or unpatented." cannot he
made to a merchant or a manufacturer
with the understanding that he is
barred from purchasing or leasing the
same sort of a machine or product
from some one else. The Trade Com
mission is charged with the labor of
breaking up and ending contracts Of
such a character.
1t must always he shown. however.
that the price Determinations and
tying contracts. in their effect, subj
stantially lessen competition or tend
Ia create "A mon poly in some line of
commerce. When the commission be-
lieves that any person or corporation
has been employing unfair methods
OF competition or violating the anti
trust laws II can investigate the prac-
tices of that person or the officers of
that corporation, and If guilt be es-