The broad ax., 1916-07-01
Aimed at Dishonest kTwtiS-
Ing and False PratsRs&
TO AID HONEST BUSINESS.
Measure WIN Prevent Injury 10 Small
o. Cities and Towns From cutthroat
MonopeIistio Methods Of Mail Order
Houses and.Bis City stores-NfiH In
sure uniferm Prices and High Quality
BY w. bob HOLLAND.

"A bin to protect the public
against dishonest advertising and
false pretenses in advertisiRs."
This q the comprehensive title ef q
measure tnt,oduced In the present con-
gress by Representative Dan v. Ste
phens'of Nebraska I similar bin has
been introduced In the senate By Sena-
tor kshurst Of Arizona No ena can
find fault with legislation that will
achieve the objects stated In ths titles
OF the Stephens-Ashurst bin. Ths pub
He certainly needs protection against
dishonest advertising and false pre-
lenses in merchapdising."
The bib now under consideration Is
the successor Of the Stevens bin, q
measure introduced In the last con-
gress by Representative Stevens Of
New Hampshire. It was widely dis
cussed and died In committee after
several public hearings, at which fits
merits and demerits were considered.
The Stephens bill embodies the changes
IA6I bCC1uCu ooVISoOtc d4lcI kuCSc
hearings and discussions, and 1t Is be-
heved that in its present form It safe
guards the producer, the merchant and
the consumer.
For many years the right Of q pro-
ducer 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 Gin restraint Of trade" and
against public policy" The court di-
vtded on the question, 8 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.S
Agency System ls 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 restricted area can also regu-
late their prices by making grocers|
their agents and thereby retaining title
to their bread and rolls untI1 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-
ton 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 the
large cities, and mafl order houses use|
cut prices ON standard, wen known
articles to draw trade away from
mall stores and small towns The
loss they may suffer on these standard
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 a special bargain bait"
to attract customers to whom other
goods may be sold at q profit; the con-
sumer Is damaged because producers
are not encouraged to maintain quality
and because inferior articles ara sub
stituted.
Ample Protection Afforded.
The StephensAshurst 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 q monopoly Of articles
belonging to the same general class Of
merchandise, and he must not agree
with any competitor to control prices.
The producer must also file a -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 q 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 equahzs freight rateA
A merchant who decides to quit busi-
ness, who wishes to discontinus any
hne Of listed goods or who becomes
bankrupt must first offer such listed
articles to the manufacturers for re-
demption at the fun price paid. Should
the manufacturers neglect or refuse 10
redeem the goods then the dealer can
san them at any price he desires On can
gef Damaged goods must also b Of
fered for exchange or redemption. and
II later offered for sale at reduced
prices the reason for the reduction
must be made Known to purchaser