The Lambertville record., 1916-05-18

For many years the right of a 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 a contract
was Sin restraint of trade" and
against public policy" The court di-
vided on the question, to f. 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.
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 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 re-
store to these producers a protection
they had before it was taken away
from them by the supreme court.
Cut rate department stores, so called
Chain" drug and grocery stores in the
large cities, and mail 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 or
goods put up under their own brands.
In this way the producer is iniure1
because the reputation Of his product
is ruined; the retail merchant is dam.
aged because he cannot afford to ad-
yertise widely a special bargain bait,
to attract customers TO whom Other
goods may be sold at a profit; the cor.
sumer Is damaged because producer
are not encouraged to maintain ouai.
| ity and beca use inferior articles ar,
substituted.
Ample Protection Afforded,
The stephens-Ashurst bill is nof
compulsory. TO take advantage OF II
provisions the producer must reglstea
his trademark or special brand with
the bureau Of corporations I'm Wash
ington and must pay a fee of $40. H.
must not have monopoly Of article
belonging TO the same general class az
merchandise, and he must not agrea
with any competitor TO control prices.
The producer must also file n sched
uie giving the prices at which his listed
article II sold 10 wholesalers, TO retail.
ers and 10 the consumer. This sched
ule OF prices becomes a public docu,
neht The prices scheduled must be
uniform to buyers under similar cir
cumstaDces. This permits reduction IN
prices for quantity purchases and al
i0wanees 10 eqnalize freight rates.
a merchant who decides 10 quit busi
ness, who wishes 10 discontinue any
line OF listed goods or who becomes
bankrupt must first offer such listed
articles 70 the manufacturers for re
demDtion at the full price paid. Should
the manufacturers neglect or refuse Il
redeem the goods then the dealer car
sell them at any price he desires or caf
get. Damaged goods must also be of
fereo for exchange or redemption. anl
II later offered for sale at reduced
prices the reason for the reduction
must be made known 10 purchaseps
There L. also clause permitting sea
ponable sales.