The broad ax., 1916-06-03

Measure VIE PreNera iHJuTy - AHst-
or Cities and Towns From cutthroat
MonopoIistie Methods Of Mail Order
Houses and Big City Stores-Will In
!, sure Uniform Prices and High Quality
BY w. BOB HOLLAND.
"A bin to protect the public
against dishonest advertising and
false pretenses in Advertising
This Is the comprehensive title Of .
measure introduced In the present con-
gress by Representative Dan v. Ste
pbens Of Nebraska. A similar bin has
been introduced IN the senate by Sena-
tor Ashurst Of Arizona No ons can
find fault with legislation that win
achieve the objects stated In he titles
of the Stephens-Ashurst bin. 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 bin,
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-
lieved 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 Sin restraint Of trade" and
against public policy" The court d.
vided 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.
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 4 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 a protec-
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 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 q 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 are sub
stituted.
Ample Protection Afforded.
The Stephens-Ashurst bill Is not
compulsory. To take advantage Of its
provisions the producer must register
his trademark or special brand with
| IAt uuEtdu VI COIpOIdllOuS IL WASH
tngton and must pay a fee Of $40. He
must not have a 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 SEIZED.
uls 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-
nent. The prices scheduled must be
uniform to buyers under similar cir.
cumstances. This permits reduction In
prices for quantity purchases and al.
lowances to equalize freight rates.
A merchant who decides to quit bust.
ness, who wishes to discontinue any
line OF listed goods or who becomes
bankrupt must frst offer such listed
articles to the manufacturers for re.
demption at the full price paid. Should
the manufacturers neglect or refuse to
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