The broad ax., 1916-05-06
The Stephens Bill Encourages
Rivalry In Quality.
REAL BENEFIT TO PUBLIC.

The true competition is between
rival articles, competition in ex-
cellence, which can never be main
tanned If, through the perfidy of
the retailer who cuts prices for
his own Interior purposes, the
manufacturer is forced to compete
in prices with goods of his own
production, while the retailer re-
coups his losses on the cut price
by the sale of other articles at, or
above, their reasonable price. IT
Is A FALLAcY TO ASSUME
THAT THE PRICE CUTTER
POCKETS THE LOSS. THE
PUBLIC MAKES 1T UP ON
OTHER PURCHASES. Fixing
the price on all brands of high
grade -four is very different thing
from fixing the price on one brand
of high grade flour. The one
means destruction of all COMPETE
ton and of all incentive to in.
creased excellence. The other means
heightened competition and intsn-
sifed incentive to increased ex-
cellence.
This language, used by the supreme
court Of the state of Washington In a
unanimous decision of the case of the
Fisher FIGURING Mills Co. versus G. A.
Swanson, clearly sets forth the inter
est the consumer has in maintaining
the highest form of competition-that
Of quality. Competition in price re-
suits in inferior quality and the evil
of substitution. Dishonest advertisers
use cut prices on STANDARD and widely
known merchandise to lure customers
into their establishments, where an
effort will be made to sell anonymous
goods.
The genuine bargain is used as "bait''
to spread the impression that all mer-
chandise is sold at the same low mar
gin of profit. If this impression can be
created the cut rate merchant can sell
unknown goods at as high a figure as
his conscience will permit him to
charge-and his conscience is elastic
Nearly every mans is more or less so
where profits are concerned.
A Bill to Protect the Public
Representative Dan V. Stephens of
Nebraska and Senator William +. Ash
urst of Arizona have introduced In
congress "a bill to protect the public
against dishonest advertising and false
pretenses in merchandising" A SINH
lar measure was introduced in the last
congress by Representative Stevens of
New Hampshire.
1t ought to be automatic that the pub
lie cannot profit through dishonesty or
through false pretenses. The individ-
ual may make pecuniary gain;
thieves, burglars and confidence men
occasionally escape paying the penalty
Of their crimes and are pecuniarily bet
ter of. But the public, the victims of
the successful criminals, loses.
The Stephens-Ashurst bill provides
for standard and uniform prices on ar
ticles sold under a trademark or spe-
cial brand, with the widest possible
publicity for buyers and sellers. Oppo-
nents of the bill-adherents of dishon-
est advertising and users Of false pre-
lenses in merchandising de-
clared that it will encourage monopoly
and prevent competition. They have
tried to make consumers believe that
it will increase the cost of living, that
it will raise the price of everything
sold in any sort of store.
No Monopoly Possible
The bill does not encourage monop-
oily, because producers who have a mo-
nopoly of any particular line or who
make an agreement with a competitor
to maintain prices are barred from
taking advantage of the privilege Of
preventing discrimination by contract
! ing for the resale of their goods at uni
form prices. A monopoly, no matter
how it is gained, cannot do business
/ under the terms of the Stephens bill
On the other hand, cutthroat compe-
tition in price has always been the
chief weapon of monopoly.
The bill will not raise prices and in
crease the cost of living. Producers
already have the right to sell their
goods at wholesale at any price they
can get, at what they are worth The
proposed legislation merely permits the
producer to control the retail price, and
If he puts this too high-higher than
the public is willing to pay-then his
goods will not be sold and he loses.
The cut price stOrekeeper that sells
goods at a loss does not stand the loss;
he passes it on to his customers. What
he loses on one article is made up, or
more than made up, ON another. The
use of cut prices on standard articles
for the purpose of drawing customers
into the store with the intention of
selling them something else, that is
where dishonest advertising" Is found
and where false pretenses In mer-
chandising" Injuries the public.
Cut rates by big department stores
enable them to kill of the small store
and the small towns. Those residents
of rural communities, villages and the
lesser cities who want to see their
home folks injured that the large cities
may grow richer and larger should
naturally oppose the Stephens bill.
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