Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-07-12
Federal Trade Commission
Wants Business Methods
Regulated.
PRESENT METHODS
HELD DANGEROUS
Rieht Of Manufacturers to Fix Resale
Price by Retailers Established But
Menace to Consumer Unless Rssu-
lated and Restricted, Commission Re-.
perts-Findinss Based On Supreme
Court Decision.

washington, July 1s.-iHe new AoS
ommendation that manufacturers b.
permitted by law to fix and maintain
resale prices subject to review by q
6isinterested agency was made by the
federal trade commission today In q
special report to congress. Existing
laws, which have been interpreted by
the supreme court in the case against
Colgate & Co., and other test cases to
prevent fixing Of resale prices should
be amended, the commission believes.
with q view to removing the present
complexity in the business world, to
promoting the efficiency Of manufac-
turing and commercial institutions,
and to conserve the interests Of the
consuming public.
Under the commissions recommen-
dations, first advanced in report to
congress last December. manufactur-
ers 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
disinterested agency would be charged
with the duty upon complaint OF any
dealer or consumer or other party at
interest" to review the terms Of con-
tract and prices.
Unlimited Powers Dangerous.
The commissions recommendations
the report says. are based on the fol-
lowing conclusions:
That producers Of identified goods
Identified by trademark or trade prac-'
tice-shouid BE- protected in their in
tangible property rights or good will,
created thru years Of fair dealing or
by testing the quality OF merchandise.
That the unlimited power both to
fix and enforce maintenancsuf resale
prices may not be made lawful with
safety.
That unrestrained price-cutting IS
not in the public interest, and tends
eventually to impair. II not destroy, the
production and distribution of articles
desirable to the public.
There must be a common ground"
the commissions report says, where
in the rights Of producers, purveyors
and consumers may each be fully Sc
cured and equity done to all: The SUI
preme court has made 1t clear that. in
the present state Of law, the mainten-
ance Of resale prices by the producer
is restraint OF sale and Is unlawful"
Should Protect Good Will.
1T ID urged, and the commission be-
lieved 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 in
clines producers 70 FIX the lowest pos
sible retail price In order to secure the
greatest possible sale Of their product,
but In the complex commercial organ
Ism functioning between the pro-
duction OF an article and its final sale
for actual consumption both the
wholesale and retail merchant ara en-
titled to just compensation for useful
service performed.
1T II similarly urged that nnanufact-
urers should be protected in their good
will created by years Of fair dealing
and Of sustained quality Of merchan-
disc.
The consumin public does not enjoy
benefits OF unfair price cutting to COM
pensate it for the injuries following
decentralization caused by price cut
ting. This for the reason that, in the
long run. .lunrestrained price cutting
tends to impair II not destroy the pro-
duction and distribution of%articles de-
sirable to the public"