The Lexington progress. (Lexington, Tenn.) 1884-current, 1916-05-26
STEPHENS BILL
PROTECTS PUBLIC
Aimed at Dishonest AdV8TtIs-
Ing and False Pretensss.
TO AID HONEST BUSINESS.

Measure Will Prevent Injury to Small
or Cities and Towns From Cutthroat
Monopolistic Methods Of Mail Order
Houses and Big City stores-Wiu In
surs Uniform Prices and High Quality.
Hy W. BOB HOLLAND.
"A bill to protect the public
against dishonest advertising and
false pretenses In Advertising"
This is the comprehensive title OF a
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 ia
the successor Of the Stevens bill, a
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 1t Is be-
lieved that in its present form 1t 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 a contract
was Sin 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 es
tablished custom, but 1t 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 titlt
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 merchant!
for their distribution, are denied thu
right that men in other lines have. Th'
Stephens-Ashurst bill Is designed to re
J store to these producers a protection
they had before 1t was taken away
from them by the supreme court.
Cut rate department stores, so called
chain" drug and grocery stores in thu
large cities, ard mail order houses us,
r cut prices on standard, well known
| articles to draw trade away from
small stores and small towns. Thu
loss they may suffer on these stand
ard articles is more than made up b!
: the high profits on anonymous goods O
goods put up under their W brands
In this way the producer Is injured
because the reputation Of his produc
! Is ruined; the retail merchant is dam
; aged because he cannot afford to I'D
vertise widely a special bargain bait
/, to attract customers to whom othe
goods may be sold at a profit; the con
sumner is damaged because producer
are not encouraged to maintain quail
ity and because inferior articles ar
substituted.
Ample Protection Afforded.
The Stephens-Ashurst bill Is no
compulsory. TO take advantage Of 1t
provisions the producer must registe
his trademark or special brand wit
the bureau Of corporations in Wash
ington and must pay a fee Of $40. Fl
] must not have a monopoly Of article
belonging to the same general class Q
merchandise. and he must not agre
with any competitor to control prices.
The producer must also file a sched
ule giving the prices at which his llste
] article is sold to wholesalers, to retail
!. ers and to the consumer. This sched
ule Of prices becomes a public docr
ment. The prices scheduled must b
! uniform to buyers under similar eli
! cumstances. This permits reduction !
prices for quantity purchases and a
lowances to equalize freight rates.
A merchant who decides to quit bus
ness, who wishes to discontinue an
line Of listed goods or who become
bankrupt must first offer such liste
articles to the manufacturers for r.
demptlon at the full price paid. Shout
! the manufacturers neglect or refuse I
redeem the goods then the dealer ca
B sell them at any price he desires or Ca
s get. Damaged goods must also be- O
fered for exchange or redemption, an
L - -AaanoH Ana unIn ar rodIlno