Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-01-11
BILL INTRODUCED TO CORRECT
EVILS CUTTHR0AT COMPETITION

washington, Jan. 10.-Louis D. Bran
deis of Boston appeared before the
House committee on interstate and
foreign commerce Saturday in advo-
cacy Of the bill introduced by Con-
gresham Stevens of New Hampshire
designed to correct evils of merchan-
dising based on misleading advertis-
Ing, sham bargain pricing and sub
stitution of inferior articles in place
of standard goods.
The legislation is advocated by the
American Fair Trade League and by
the National Associa ton of Retail
Merchants throughout the country.
The bill would permit uniform price
fixing by manufacturers.
Mr.. Brandeis stated that unfair and
oppressive competition prevents nat
ural development and gives success to
those who use crooked methods to de-
stroy competitive business. He said the
aim Of the Clayton law was to pre-
vent the destruction Of competitors.
Worst Form Of Competition
''The very worst form of COMPETE
tion," said Mr.. Brandeis, lis cutthroat
competition. 1t was the means used
by the Tobacco Trust in sitting COM
petition. We must prevent just such
competition as this.
Take the case of the Standard Oil
Co. They would sell at one price to a
particular consumer in one district
and at a higher price to another con-
sumner in the same district in order to
drive the last-named out of business.
when the Tobacco Trust entered
upon a policy of destroying competition
throughout a wide field. 1t set apart a
fund Of $5.000,O0O which it was pre-
pared to lose in order to obtain for
itself a monopoly of the tobacco bust
ness in England"
Mr.. Brandeis said all intelligent leg
islation during the last decade had
dealt with cutthroat competition, and
THAT the proposed legislation aimed to
end monopoly by preventing it. The
principles of the measure, he said, had
been advocated by Democrats, Repub-
licans and Progressives alike.
Right to Fix Prices
Mr.. Brandeis said he believed to he
the right of manufacturer of any ar
ticle, no matter what its nature or
this article should be sold and he said
such right had always been recognized
until the Supreme Court of the United
States in a divided opinion had hAd
that such action was in restraint OF
trade and against public policy.
u believe the Supreme Court made
an error in business Judgment" he
said, when 1t held that a man could
not fix the price at which a particular
article which he manufactured should
be sold. 1t is the common law of the
land and has so been recognized by
court decisions not only in this coun-
try but in foreign countries as we'll.
"A contract for a resale is not
restraint Of trade, in my judgment.
Everybody who has capital enough can
fix the price Of an article at any sum
he may desire. but the small producer
and manufacturer cannot. He will only
fix such a price as he believes will DC
fair to all concerned"
Willing to Pay for Value
He contended that buyers wanted
known value and they did not mind
paying the price for it as long as they
got that value. He said that to under
sell staple article was not only ruin.
Gus to the manufacturer but hurtful TO
the reputation Of the retailer as well.
1.-The minute one store or one man
cuts the price on an article" he said.
that very minute the consumer will
begin to think thtat he haas been
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