The commonwealth. (Scotland Neck, N.C.) 1896-1929, 1916-05-16
STEPHENS BILL
Protects PUBLIC
Aimed at Dishonest hdVaTtis-
ing and False PTefenseS,
TO AID Honest BUSINESS.

Measure VIII Prevent Injury to Small
err Cities and Towns From Cutthroat
Monopolietic Methoso Of Mail Order
Houses and Big City Stores-Wili In
sure Uniform Prices and High Quality
BY w. BOB HOLLAND.
"a Eli to protect the public
against Dishonest advertising and
false pretens-s in advertisino."
This is the comprehensive title OF a
measure introduced in the present con
grcss By Representative Dan y. Ste
phens of Nebraska. a similar bill has
been Introduced il the senate by Sena-
tor asi.arst of Arizona. No one can
find fauit with legislation that viii
achieve the. objects stated in the titles
of the Stephens-Ashurst bill. The pub
Tic certainly needs protection against
dishonest advertising and false pre-
lenses III merchandising
The bill now under consideration is
measure introduced il the last con
gress by Representative Stevens d
New Hampshire. 1t was widely dis
cussed and died il committee after
several public hearings. 1T which its
merits and dement's were considered.
The Stephens bill c,ubodies the changes
that seemed advisable after these
hearings and discussions, and it is be
1ievcd that III its present form il safe
guards the producer, the merchant and
the consumer.
For many years the right Of pro
ducer to contract with merchants for
the resale Of his products at standard.
uniform prices was generally recog
nized and fts legality was not ques-
toned. Then the supreme court Of the
United States held that SUCH a contract
was 'in restraint Of trade and
against public policy" The court di-
vided on the question, ; Ia A. 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 Is Legal.
tablished custom, but it does not pre-
rent 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 rcgj!-
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 III small quantities ana which
must depend On established merchants
for their distribution. are denied tie
right that men ia other lines have
The Stephens-Ashurst bill is designed
to restore to these producers q protec
ton they had before it was taken
away from them by the supreme court
Cut rate department stores, so called
-'chlifl' drug ana grocery stores in t;it
larso c;ties, and mail order houses rs,
cut prices on standard, well know,
articles TO draw trade away from
small stores and snail towns. Tht
loss they may suffer on these STANDARD
articles is more than made up by thu
high profits on Anonymous goods 0
goods pu1/cp under their own brands
IN this way the producer is injured
becaGse the reputation Of his produc
is ruined: the retail merchant is dam
aged because he cannot afford to ad
Vertisc widely q special bargain "bait
80 attract customers to whom othe
goods may be sold at q profit; the COZ
:Gnler IS damaged because producer
are not encouraged to maintain qualit
and because inferior articles are sui
st;tuted.
Ample Protection Afforded.
The StephenS-Ashurst bill is ne
compulsory. 10 take advantage of il
provlaiouS the prodilcer must registt
his trademark OF special brand vii
the bureau Of corporations in Was
1ngton and must pay fee Of $40. T
must not have 81 monopoly Of articl.
belonging to the same general class
merchandise, and he must not ACRE
The producer must also file a sche
ule giving the prices al which his listt
article IS sold 10 wholesalers, to reta
ers and to the consumer. This sche
ule OF prices becomes Il public doc
ment. The prices scheduled must
uniform to buyers under similar G.
cunstances. This permits reduction
prices for quantity purchases and
loWances to equalize freight rates.
A merchant who decides to cult bu
ness, who wistcs TO discontinue a
line of listed goods or who becom
bankrupt must first offer such list
articles to the manufacturers for
der1Dtion at the full price paid. Shot
the manufacturers neglect or refuse
redeem the goot1s then the dealer C
sell them at any price he desires Or c
get. Damaged goocs must also be
fercd for exchange e. redemption, d
if later offered fer aale at reIul
prices the reason for the reducti
must be made known to purchase
There is also a clause permitting S
sonatle sales,
THE UNHAPPY MOTORLST.