Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1918-05-02
GUILTY OF
FRAUDULENT
ADVERTISING
C. E. LA VIGNE SUCCESSFUL A
GAINST LARGE NEW YORK
DEPARTMENT STORE
Greenhut Co., Inc, Go Out of Business
Shortly After Prosecution Is
Started.

untrue, uecepCIVe, OF ullSISdulIlS SGdGe-
ments about their merchandise in their
to the public. The de-
luded bargain chasers are being pro-
tected, in some quarters at least, a.
gainst this INSCRIPTIONS form of pro-
fteering in the necessities of life, des-
pite their own folly. An active agency
in the prosecution of commercial
crimes over the country is the Ameri-
can Fair Trade League of New York,
it's work in this direction being con-
Quoted by Grand Rapids boy. And
he has many successful fights to his
credit.
Some weeks ago the Reporter pub
lished details of prosecution started
against Greenhut Co., Inc, of New
York, for misrepresentation in adver-
Using. This big department store has
been doing from 100000 to $751;
100000 of retail business per year.
It's owner is wealthy. Commenting
on the case the National Labor Tri-
bune, Pittsburg, says:
"Greenhut Co., Inc, a New York
department store, which suspended
business about March 9 of this year,
was found guilty of false advertising
by Magistrate Ten Eyck in the New
York courts April IS, 1918. This case
has attracted widespread interest over
the country.
"Mr. C. E. LaVigne, field represen-
tative of the American Fair Trade
League, was the prosecuting complain
ant in the peoples cause.
Zone of the stricking features of
testimony given by Mr.. LaVigne on
the witness stand was in the recital
of conversation with the Greenhut
salesman. The salesman told me,
said Mr.. La Vigne, that he received
no salary for his services at Green
hut's, but was paid A per cent COM
mission on the merchandise he sold.
That made it necessary for him to sell
junk at high prices in order to make
living The salesman continued
But know how to sell the junk to
and who not to-
"Greenhut Co., Inc, went out of
business shortly after the charge of
false advertising was noted against
them judicially.
Referring to this retirement from
business, Women's Wear, a New York
trade paper, in it's issue of March 8
1918, says:
"The Greenhut store IN Sixth avenue
has announced it's intention to liqui-
date.
"Sentimentally, if there is time for
any sentiment in business today, New
York may miss the Big Store al
though for years it has been but a
feeble shadow of what it set out to
be.
eff it had been otherwise merchan-
dised; if the management had rea-
llzed that there was a vast field OF
trade in New York to which it could
successfully appeal, despite it's location
by giving real values instead of mere
ly talking values in its advertising, il
might now be doing a fiourishing and
profitable business.
at is somewhat pathetic thought
that after nearly quarter of cen.
fury of doing business in New York.
a great merchandising establish
ment can sink to such a point that il
can just go out of business and tbs
waters of life close over it without a
ripple.
ut began by giving values, it stop.
ped giving values, now it must stop
doing business"
Testimony given at the trial was
to the effect that the suit of clothes
advertised and sold to Mr.. LaVigne
as 'handtailored,' with the fabric "alI
WOOL was in fact machine made and
contained 81 per cent cotton in the
fabric. The defense was that the suit
was commercially hand tailored" but
the magistrate could not see it in that
light.
In making known his decision or
March IS, the magistrate said:
From the evidence submitted,
find the defendants guilty of falsely
advertising certain goods on Jan. 25
1918, in connection with Lockhart
Mill End Sale. I believe that the ad-
vertlsements were misleading, the par
ticular charge being that certain gar
ments alleged to be hand tailored, were
in fact machine made"
Greenhut Co., Inc, have been held
for special sessions court. Assistant
District Attorney Unger, who prose
cuted the case for the people upon
the complaint of Mr. LaVigne, asked
for summons, as result of evidence
IN the trial against c. A. Lockhart, a
sales promoter, who conducts special
sales for stores over the country. He
was conducting a Mill End sale for
Greenhut's just prior to their retire
ment from business and at the time
LaVigne made his purchase at Green
h1Ix