New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-24
Associated Clubs Offer to
Aid Federal Trade
Commission.
FRAUDS ESTIMATED
AT S239,OOO,0OO
Claim Made That 5000 Cases
Can Be Laid Before Officials
in Thirty Days.
lrron IN. Tribune Rutesu.l

Washington. Nov. 23.-Preentsirg
specific instances Of misleading, decep-
tive and fraudulent advertising which
they believed constituted unfair COM
petition" within the meaning Of the
Federal trade act, and expressing their
belief that the commission was at pres
emit empowered % deal with the sltua-
ton, representatives Of the Associated
Advertising Clubs OF the World were
heard by the Federal Trade Commls-
sion to-day.
Lerbert s. Houston, Of New York, de-
ei,red that the methods of fake adver-
tisers created grave abuses which
served to injure honest business men.
He outlined the work of the advertising
clubs In trying to correct this evil,
explaining the work of the National
Vigilance Committee and the State Wig
lance Committees, which tried TO
search out and correct false state
rnents In advertising. The club was
helped TO arge extent, he said, by the
laws of thirty-two states.
Much is being accomplished through
the moral suasion of the vigilance COM
mittees' according to Mr.. Houston, who
said that when piece Of fake or ms
leading advertising was discovered the
advertiser was commune. ted with, ana
that he usually corrected the adver-
tisement in question.
Large Mail Frauds.
Mr.. Houston declared that he had
been informed by the Solicitor OF the
Postoffice Department that up 20 June
fully 1929, 100000 had been taken away
from the public of this country by
mail order concerns against which
fraud orders had been issued. lie as
,erted that it was the opinion OF the
Advertising Association officials and
members that these vigilance commit
ICES could be the means OF gathering
definite, first-hand information against
nail order concerns which were en-
gagged in false advertising. Almost all
such cases. he said, would be inter
state. That this was great abuse, ne
added. was realized by the Postoffice
Department and the Advertising CLUBS.
Mr.. Houston asked for a ruling or an
expression Of the commission as 10
whether il was willing to receive any
interstate cases, which were constantly
coming to the attention OF the clubs.
He said the clubs could become an ally
of the commission. !
William II. Ingersol, chairman OF
the National Commission of the Ma
flOnal Association OF AuNei SiocASt iSAN
special stress on the class Of advertise
ments in which the advertisers asert
that they have bought the urplus stock
of manufacturers at so much on the
dollar. and offer the public the bene-
fits of their purchase. Mr.. lngersoll
said that the German law TO correct
the false advertising evil was model
one, bat he declared that the Adam
son bill, while good so far as 1t went,
was not broad enough. He said that
the bill was framed along the lines
of information given before commit
tee hearings and with no reference to
conditions in commerce.
Several misleading and fake adver-
tisements were cited by II. j. Kenner,
executive secretary of the Associated
Advertising Clubs. Among them were
advertisements of alleged sole leather
made of pasteboard; shoes made Of
cheap slip cowhide; $3.50 watch with
cellulod jewels and cheap plated case
which was sold for s5.75 and was said
by the advertiser TO be worth S25. He
also cited the case of an instrument
supposed to cure all human ailments