The Richfield recorder. (Richfield, Idaho) 1909-1931, 1916-05-19

| MonopoIistio Methods of Mail Orde
| Houses and Big City Stores-WilI In
| sure Uniform Prices and High Quality
BY w. BOB HOLLAND.
"A bill to protect tho public
| against dishonest advertising and
| false pretenses in advertising"
This Is the comprehensive title Of 4
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 were considered.
The Stephens bill embodies the changes
that seemed advisable after these
hearings and discussions, and it is be-
lieyed that In its present form it safe
guards the producer. the merchant and
the consumer
For many years the right Of a pro-
Queer to contract with merchants for
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 contract
was lin 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 had
intended the Sherman law to prohibit
such business methods.
Agency System 10 Legal.
This court made law upset long e.
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 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 restore to these producers protec- I
ton they had before 1t was taken
lway from them by the supreme court.
Cut rate department stores, so called
chain" drug and grocery stores in tho !,
arge cities. and mail order houses use
tut prices on standard, well known !
articles to draw trade away from
small stores and small towns. The s
oss they may suffer on these standard d
rticles is more than made up by the q
high profits on anonymous goods or
foods put up under their own brands.
u this way the producer Is injured =
because the reputation Of his product
5 ruined; the retail merchant is dam
eed because he cannot afford to ad-
ertise widely special bargain 'bait'' v
o attract customers to whom other I,
GODS may be sold at profit; the con. a
umer is damaged because producers :.
re not encouraged to maintain quality
nd because inferior articles are sub .
tituted. p
Ample Protection Afforded.
The Stephens Ashurst bill is not e'
To take advantage Of tn
rov1sions the producer must register le
is trademark or special brand with e
ne bureau of corporations in Wash II
lgton and must pay a fee Of $40. He u
lust not have monopoly Of articles Nv
to the same general class of !.
lerchandise, and he must not agree
18th any competitor to control prices. IL
The producer must also file sched- OF
lie giving the prices at which his listed al
-ticle is sold to wholesalers, to retail
s and to the consumer. This sched-
e of prices becomes a public docu- he
ent. The prices scheduled must be l.,
Inform to buyers under similar cir -
instances This permits reduction In ~
ices for u1antitv DurchasoS and oil N
wances to equalize freight rates. ar
A merchant who decides to quit busi- tn
,ss, who wishes to discontinue any ii,
lie of listed goods or who becomes
nkrupt must first offer such listed .o
ticles to the manufacturers for re- ar
mption at the full price paid. Should HI.
e manufacturers neglect or refuse to
deem the goods then the dealer can oil
Il them at any price he desires or can an
Damnped goods rnuet a1So ho ~