Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-07-12
TRADE COMMISSION
FAVORS PRICE FIXING
Urges Legislation Validating
Resale" Rates Of Manu-
facturers
IN INTEREST OF PUBLIC

Washington. July 1.-THE federal
trade commission In a special report to
Congress today renewed it's recon-
mendation, made last December, that
manufacturers be permitted by law to
fix and maintain resale prices, subject
to review by disinterested agency.
The commission says that such a law
would remove present complexity in the
business world. promote the efficiency
of manufacturing and commercial in
stitutions and serve the interest Of the
consuming public.
Under the commission recommends
ton manufacturers desiring to fix and
maintain resale prices would file with
an agency to be designated by Congress
descriptions of their articles, contracts
Of sale, and the price schedules to be
maintained. The dsinterested agency
would be charged with the duty, upon
complaint of any dealer or consumer or
other party at interest" to review the
terms Of contracts and prices.
Tnrestrained price cutting, the COM
terest There must be common ground
wherein the rights of producer. pur-
veyor and consumer may each be fully
secured and equity done to all.
Law as it Stands
"The question is,' the report de-
clares, whether or not a manufacturer
of standard articles. identified by either
trade mark or other practice, should
be permitted to fix by contract, express
or implied, the price at which the pur-
chaser can resell them.
"The Supreme Court has made it clear
that in the present state of the law
the maintenance Of a resale price by the
producer Is a restraint Of trade and Is
unlawful.
Such being the judgment Of the su-
preme Court, the federal trade COM
mission has enforced the law, even
though it may have appeared to operate
inequitably in some cases. In its en-
forcement of this rule the commission
has been mindful that the cutting of a
recognized resale price on we'll estab-
lished and identified articles has been
Mt times INDUCED in for unfair trade
purposes. When so unfairly used such
price cutting is attempted to be cloaked
as unlawful competition and justified
by the Supreme Court decisions.
THUS, both price maintenance and
price cutting under certain conditions
are found to be unfair, and business
men are perplexed.
Justice to Merchants
at Is urged, and the commission be =
lieves with reason, that it would be
unwise to vest with the manufacturers
of articles the right, without check or
review, both to fix and to compel the
maintenance of resale prices. 1t is
true that business practice inclines pro :
ducers to fix the lowest possible retail
price in order to secure the greatest
possible sale of their product, but in
the complex commercial organism func
tioning between the production of au
article and its final sale, for actual con
sumption, both the wholesale and retail
merchant are entitled to just compensa
ton for useful service performed.
'It is similarly urged that manufac.
turers should be protected in their good
Will, fTtdttu ny s'uis VI A"i'
and of sustained quality of merchandise
"The consuming public does not en-
10y benefits by unfair price cutting tC
compensate it for the injuries follow
ing decentralization caused by price c"-
ting. This for the reason that in thu
long run unrestrained price cuttini
, tends to impair, if not to destroy, thu
production and distribution of articles
desirable to the public"
Competition Fair and Unfair
The commission renews its recon-
mendation of December 2, 1918
that if the recent decision of the Su
preme Court in United States VS.. Col
gate & Co. be construed to hold it law
e full, under the Sherman law, for manu-
: facturers to fix resale prices and T.
e enforce the maintenance OF such price
b by refusal to sell to those who do no
( resell at the prices fixed. or by othe
n means, II does not follow. that the Akin
and enforced maintenance Of such price
an 49,