The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-07-12
CHECK ON DEALERS
Federal Trade Commission
Recommends Price Law.
Would Permit Manufacturers To
Fix Resale Scale.
STOP BIG PRICE SLASHING
Situation at Present PerpIexes
the Business Man.
Plan Would Put Lists Into the
Hands of Federal Agency.

Washington. July II. - Renewed
recommendation that manufacturers
be permitted by law to fix and main
tain resale prices, subject to review
BY a disinterested agency, was made
BY the federal trade commission to-
day in a special report to congress.
Existing laws which have been in
terpreted by the supreme court in the
case against Colgate & Company,
and in other test cases to prevent fix
ing of resale prices should be
amended. the commission believes,
with a view 70 removing the present
complexity in the business world to
promoting the efficiency Of manufac-
turing and commercial institutions
and to serving the interests of the
consuming public.
Under the commissions recon-
mendation first advanced in a report
to congress last December, manufac-
turers desiring to fix and maintain re-
sale prices would file with an agency
to be designated by congress descrlp-
tons Of their articles, contracts OF
sale and the price schedules TO pc
maintained The disinterested agency
would be charged with the duty upon
complaint OF any dealer or consumer
or other rarity at interest" to review
the terms OF contracts and prices.
Basis for Report.
The commissions recommendations,
the report said. were based on the
following conclusions;
That producers OF Identified goods
Identified by trademark or trade
practice-shouid be protected in their
Intangible property right or good VIII,
created thru years OF fair dealing and
of sustained quality Of merchandise
That the unlimited power both to
a nd al resale
prices may not be made lawful with
safety; and
That unrestrained price cutting is
not in the public interest and tends
eventually to impair. II not to destroy,
the production and distribution Of ar
ticles desirable to the public.
There must be a common ground"
the commissions report said. where
in the rights of producer purveyor and
consumer may each be fully secured
and equity done to all. The supreme
court has made It clear that in the
present state Of the law the mainte-
nance of a resale price by the pro-
Queer. Is a restraint of trade and is
unlawful.
"Such being the judgment of the
supreme court the federal trade COM
mission has enforced the law even tho
Il may have appeared to operate in
equitably in some cases. In its en-
forcement Of this rule the commission
has been mindful that the cutting of
q recognized resale price on well es-
tablished and identified articles has
been, at times INDUCED in for unfair
trade purposes. When so unfairly
used, such price cutting is ATTEMPTED
TO be cloaked as lawful competition
and justified by the supreme court
decisions
Business Men PcrpIcxed.
Thus both price maintenance and
price cutting under certain conditions
are found to be unfair and business
men are perplexed.
1T is urged, and, the commission
believes. with reason, that it would
be unwise TO vest with the manufac-
turers of articles the right, without
check or review, both to fix and to
compel the maintenance of resale
prices. It is true that business prac-
uce inclines producers to fix the low
, est possible retail price in order to
AFecure the greatest possible sale of
heir product, but in the complex
commercial organism functioning be-
ftween the production OF an article and
its final sale. for actual consumption,
both the wholesale and retail mer-
chantha are entitled to just compensa-
ton for use of the service performed.
1T is similarly urged that manufac-
turers should be protected in their
good will created by years of fair
dealing and of sustained quality of
merchandise.
The consuming public does not en-
Joy benefits by unfair price cutting to
compensate it for the injuries follow
ing generalization caused by price
cutting. This for the reason that in
the long run, unrestrained price cut
ting tends to impair. IL not 20 destroy
the production and distribution of ar
ticles desirable to the public"