The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1916-05-09

Or cities and Towns From cutthros
MonOpolistio Methods Of Mail ords
Houses and Big City stores-will In
sure Uniform Prices and High oualit,
| BY W. BOB HOLLAND.
"A bill to protect the public
against dishonest advertising and
false Prstsnses in Advertising"
This Is the comprehensive title Of
measure introduced in the present con
gTess by Representative Dan V. Ste
phens Of Nebraska. A similar bill ha
been introduced in the senate by Sena
tor Ashurst OF Arizona. No one cal
find fault with legislation that will
achieve the objects stated in the title
Of the Stephens-Ashurst bill. The pub
lie certainly needs protection "agains
dishonest advertising and false pre-
lenses in merchandising
The bill now under consideration 4
the successor of the Stevens BILL ,
measure introduced in the last con
gress by Representative Stevens o
New Hampshire. 1t was widely dis
cussed and died in committee aftel
several public hearings, at which It.
merits and dement's were considered
The Stephens bill embodies the change.
that seemed advisable after thes,
hearings and discussions, and 1t is be
lieved that in its present form It safe
guards the producer, the merchant anC
the consumer.
For many years the right of a pro
ducer to contract with merchants fol
the resale OF his products at standard
Uniform prices was generally recog
nized and its legality was not ques
toned. Then the supreme court Of the
United States held that such a contract
was Sin restraint Of trade" and
against public policy The court d.
vided on the question, to 4, and the
majority found no specific law forbid
ding the practice that had long been
common, but held that congress had
intended the Sherman law to prohibit
such business methods.
Agency System 10 Legal.
This court made law upset long es.
tablished custom, but it does not pre-
vent the end sought from being reach
ed by other means. Producers who
wish to have no dlscriminGt ton shown
to favored individuals can insure uni
form prices for their goods by estab-
fishing branch establishments or by
appointing agents. This Is the method
followed by manufacturers OF automO.
biles. Bakers who sell their products
within a restricted area can also regu.
late their prices by making grocers
their agents and thereby retaining title
to their bread and rolls until they
reach the consumer.
Producers OF other articles, goods
sold in small quantities and which
must depend on established merchants
for their distribution, are denied the
right that men In other lines have. The
Stephens-Ashurst bill Is designed to re-
store to these producers a protection
they had before 1t was taken away
from them by the supreme court.
Cut rate department stores, so called
Chain" drug and grocery stores In the
large cities, and mail order houses use
cut prices on standard, well known
articles to draw trade away from
small stores and small towns. The
loss they may suffer on these stand
ard articles Is more than made up by
the high profits on anonymous goods or
goods put up under their own brands.
In this way the producer is injured
because the reputation OF his product
Is ruined; the retail merchant is dam.
aged because he cannot afford to ad-
vertise widely special bargain "bait'
to attract customers TO whom other
goods may be sold at a profit; the con-
sumner Is damaged because producers
are not encouraged to maintain quail
ity and because inferior articles are
substituted.
Ample Protection Afforded.
The Stephens-Ashurst bill Is not
compulsory. To take advantage Of its
provisions the producer must register
his trademark or special brand with
the bureau OF corporations In Wash
ingtOn and must pay fee OF $40. He
must not have a monopoly OF articles
belonging TO the same general class Of
aud he must not agree
with any competitor TO control prices.
The producer must also file a SEIZED
ule giving the prices at which his listed
article Is sold to wholesalers, to retail
ers and 20 the consumer. This sched.
lle OF prices becomes a public docu-
ment. The prices scheduled must be
uniform to buyers under similar cir
rumstances. This permits reduction In
prices for quantity purchases aud al
Owances TO equalize freight rates.
A merchant who decides TO quit bust
ness. who wishes TO discontinue any
line OF listed goods or who becomes
must first Offer such listed
articles TO the manufacturers for re-
lemption at the full price paid. Should
he manufacturers neglect or refuse 10
redeem the goods then the dealer can
sell them ut any price he desires OF can
get. Damaged goods must also be Of.
'ered for exchange or redemption, and
Z later offered for sale at reduced
prices the reason for the reduction
must be made known 70 purchasers.
There Is also clause permitting sea
'onAblo sales.
t--~------s---
Flanhels and small boys shrink from