The states-graphic. (Brownsville, Tenn.) 1???-1984, 1918-01-18
FIXING SELLERS FOR
FIXING PRICES

The government has taken signifi-
csRt action by bringing indictments
AGAINST the officers Of Colgate G. Co.,
IT, biggest and most heightened pro-
d4cers Of fancy soaps, perfumery and
similar preparations in this country.
The charge is that this concern has vi
obted the antitrust laws and prac-
TIED unlawful restraint and monopoly
Of trade, by fixing arbitrary retail pri-
css for its products and boycotting
al dealers who sell at lower prices.
The line has never been distinctly
and finely drawn by the courts be-
tween legitimate price making ar
special cases it has been recognized
,blawful dictation Of prices. in some
proper for producers to say what
heir products shall be retailed for
nt as rule it has been held that when
hey let their goods go out of their
lands and receive money for them
lheir control over them ceases, ana
they have no right then to say for
how much or how little the goods shall
be sold.
In other words, when a sale is made
the buyer has complete and sole con-
troll over the goods and the seller no
longer has any right to dictate how he
Hhall dispose of them or for how much.
II might even be that the buyer would
want. to give the goods away, and it
would be obviously unjust if he could
be prohibited by the seller from carry
ling out this good purpose.
The manufacturers of well-known
and widely advertised brands of goods
have banded together to protect pri-
ces,' as they call it. That is, they
place on the black list all dealers who
sell at cut prices or who encourage
customers to buy similar articles that
are cheaper. The magazine publishers
have stood in with the manufacturers
on this proposition and they constant
ly urge their readers to buy ezly the
advertisedNbrands of goods, even when
equally reliable articles of other makes
can be had for much less money.
The manufacturers advertise heav-
lily in the magazines and thus the two
interests work together to maintain
high prices, irrespective Of COMPETE
tion on the interests of the consumers,
The manufacturers argue that they
have ype..t much time and money in
perfecting their products, and that it is
worth while for the consumers to be
able to buy standard guaranteed
brands Of goods and know what they
are getting, rather than buy doubtful
articles at lower prices.
When some big mail-order house !.
department store for instance, quotes
standard brands of goods at cut pr
ce. it mo allies the whole market
for those goods and the regular prices
can no longer be maintained. Accord
ingly it is common practice for the
manufacturers to refuse to sell to
concerns that will not agree to main
tain prices.
1t is this monopolistic practice
which is now being attacked by the
government. In number of such ca
ses the government has been upheld.
A recent instance was that of the
Paris Medicine Co., which sought to
prevent dealers from selling its goods
at cut prices. The decision went
against that concern and it was order
ID to cease its methods. The Colgate
TO-, it is understood, will make hard
light in defense of its "long-establish- !
d custom" of price-fxing, and the
utcome of the case will be watched
nth interest.