The Caldwell watchman. (Columbia, La.) 1885-1946, 1916-05-26
Aimed at Dishonest AdVertiS.
ing and False PIetenses'
TO AID HONEST BUSINESS.

cure Uniform PfSe8 and F1!9h Aualhy
BY w. BOB HOLLAND.
"A bill to protect the public
against dishonest advertising and
false pretenses in advertising"
This is the comprehensive title OF q
measure introduced in the present con-
gress by Representative Dan V. Ste
phens of Nebraska. A similar bill has
been introduced in the senate by Sena-
tor Ashurst of Arizona. No one can
find fault with legislation that will
achieve the objects stated In the titles
of the Stephens-Ashurst bill The pub.
lie certainly needs protection against
dishonest advertising and false pre-
lenses in merchandising"
The bill now under consideration Is
the successor Of the Stevens bill, q
measure introduced in the last con.
gress by Representative Stevens OF
New Hampshire. 1t was widely dis
cussed and died In committee after
several public hearings, at which its
merits and dement's We're CONSIDERED.
The Stephens bill embodiaS the changes
that seemed advisable after these
hearings and discussions, and it Is be-
lieved that in its present form It safe
guards the producer, the merchant and
the consumer.
For many years the right Of pro.
ducer to contract with merchants Tor
the resale of his products at standard,
uniform prices was generally recog'
nized and its legality was not CUES
toned. Then the supreme court OF the
United States held that such contract
was in restraint of trade and
against public policy" The court d.
vided on the question, 5 to 4, and the
majority found no specific law forbid
ding the practice that had long been
common, but held that congress mad
intended the Sherman law to prohibit
such business methods.
Agency System Is 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 discrimination 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 Oh established merchants
for their distribution, are denied the
right that men in other lines have. The
Stephens-Ashrrst bill is designed to re-
store to these producers protection
they had before it was taken away
from them by the supreme court
Cut rate department stores, 50 called
"chain" drug and grocery stores In tho
large cities, and mal 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 OK
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 "ba1t"
to attract customers to whom other
goods may be sold at a profit; the con.
sumer is damaged because producers
are not encouraged to maintain quail.
ity and BECAUSE inferior articles are
substituted.
Ample Protection Hfsorded.
The Stephens ShurSt bill is not
compulsory. To tale vantage 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 monopoly of articles
belonging to the same general class Of
merchandise. and he must not agree
with any competitor t0 control prices.
The producer must also file sched-
ule giving the prices at which his listed
article is sold to wholesalers, to retail
ers and to the consumer. This sched-
ule of prices becomes public docu-
ment. The prices scheduled must be
uniform to buyers under similar cir
cumstances. This permits reduction In
prices for quantity purchases and al
loWances to eqUilize freight rates.
a merchant who decides to quit bust
ness, who Wishes to discontinue any
line of listed goods or who becomes
bankrupt msust first offer such listed
articles to the manufacturers for re.
demptton at the full price paid. Should
the manufacturers neglect or refuse to
redeem the goods then the dealer can
nell them at any price he desires or car
get Damaged goods must also be Of
L.