Norwich bulletin., 1916-05-06

At an open meeting of the Norwich Chamber of Commerce held in Buck ingham Memorial Friday evening w. B. Holland, representing the American Fair Trade league, with headquarters in New York. gave an instructive ad- dress on dishonest advertising and false pretenses in merchandising.
 The resolution presented at the last meeting by the board of directors rel- alive to the new quarters in the Nor wich Chamber of Commerce building were ratified. The minutes of the last meeting were read by the secretary, Charles w. Pearson. and accepted. One new member was admitted, Richard ChrishoIm. Second Vice President Ed ward J. Hunt gave a report on the State Chamber of Commerce meeting held in Hartford Thursday.
 Referendum No. 13 was tabled after a discussion. and referendum No. Is on national defense and referendum No. IA on why the chamber of commerce should stand for federal aid for voca- tiona1 education were taken up.
 'eThe question: of price maintenance is one of first importance" declared MT. Holland, because it concerns all of us as consumers. It must be con- sidered in its broad ethical and social aspects as well as in its business and commercial features. It cannot be solved merely by considering 1t from the selfish point of view.
 T am often asked of what value the principle of price maintenance is to the consumer. My answer is to ask what advantage the cut price system is business at loss for any considerable time and stay in business. A certain profit must be made, the average must be maintained, and if one article is sold at a loss then some other article must be sold at a greater profit to es- tablish the average so that the GUS tomer who buys all his drugs or all his groceries at a cut rate store will come out even at the end of the year Tn other words, he gets a 50-50 split and has derived no benefit from the occasional low prices that he has en-
 The Standard Article.
 '-The consumer loses when the standard article is driven from the market but the cut rates and this re- suit will follow persistent cut prices The consumer also suffers from the danger of substitution and from the higher prices that he pays under the mistaken notion that the store whicl | sells one article cheap must also sel | other articles on the same basis. II costs a store a certain percentage tC l do business, and this percentage doe: not vary much in various establish ments.
 l Luring Customers Into Store.
 When you see an advertisement l quoting low price for some standarC article and this price is followed by th' line Only one to a customer it is per fectly clear that this advertisement was not for the purpose of selling goods but was to lure customers int, the store, where they would probabl. buy some other unidentified articles ol which a high profit was made.
 tTt is against this form of adver Using, advertising that is ethicaIly un sound and is condemned by statute of many states, that the principle o tprice standardization as exemplif1ed i the Stephens bin is aimed.
 | The Stephens Bill Explained.
 After explaining that the presen
 referendum from the Chamber of Com
 merce of the United States has to
 only with the question of price main
 tenance and had nothing to do with tn
 Stephens bill, the speaker devoted con
 siderable attention to that measur' explaining its principal features. q
 is merely an intelligent effort to pr