Evening star., 1920-01-17
BRIBERY REGARDED
EVIL IN INDUSTRY
Trade Commission Scores
Awarding OF Gifts to Pro-
mole Business.

Commercial bribery is III. l. ".
W. and bolsheNist of honest compctI-
tive business. according To the Fed
eral Trade Commission. many mem
berS of Congress and leaders in the
very industries where 1t has been
fostering. \ drive is soon to be made
to eradicate this evil through a fed
eral statute making commercial
bribery" Il crime.
The Federal Trade Commission has
found this so-called commercial brib-
cry TO be recognized practice in
many lines of trade. and a growin;
menace to honest competition. The
commission has recon mendasI to Con
gress the passage of a bill which is
now before the House committee on
interstate and foreign commerce. and
on which Chairman Esch of the House
committee hopes to get action as soon
as the railroad bills have been dis
posed of in conference. Representa-
tive Samuel L. Winslow of Massachu-
sets is chairman of special SUBJ
committee which will have charge of
hearings on the measure.
Phases Of Alleged "Brih-ry.'
In brief. commercial bribery. as
discussed by the Federal Trade Com
| mission. is the bribery OF employees
of customers by direct payment of
money. by gifts of cigars, theater
tickets. liquor or other gratuities az
! method of securing trade. Frequent
y the commission has found that this
bribery also extends to the en-
pIoyes. making it appear that the sup
pres OF rival concerns offered in COM
petition are OF inferior quality
The Federal Trade Commission is
directed under its organic act TO pre-
( vent unfair methods of competition
IN" one outstanding unfair method
has been found 10 be commercial
1 1gllI hos
I this 10 be "A prevalent and common
practice III many industries" accord
| ing TO a special report made to Con-
| sr.ss II has helped to increase the
cost OF living. for, the commission
says, this nexcusable added cost is
! finally passed on to the consumer"
Some of the concerns which gain bust
ness through use Of this system are
spending millions of dollars a year in
commercial bribery.
Numerous Complaints Filed.
The Federal Trade Commission has
issued hundreds of complaints against
individual concerns. These concerns
almost unanimously express a desire
| TO have this custom stopped. but they
| say they cannot do it individually
because If they stop paying the toll
rival concern will do SO and get
the business that they have been
cultivating for many years
The commission has felt that com
mercial bribery is criminal. per ST
The commission has no criminal juris-
diction There is no federal statut..
| that will reach it, although a num-
1 Der of states have statutes to cor
| troll II. The commission, in dealin.
| with the evil can reach only the give
| and not the receiver, who is at Least
equally guilty. the commission be
now is to issue an order TO the coll
Germ believed to be guilty to ''ceas
I and deSist." The commission has no
! power to punish, and its only recours-.
10 stop such unfair practic. is through
| an Application TO the court of ap-
peals.
Cites COnde emnation OF Practice
The report to Congress points out
that the practice Us one that has beelf
condemned alike BY business men. le.-
islatures and courts, including man.
OF the very men who have resortt,:
TO such practice in self-dcfense, H.
competing with less scrupulous riva Is
or In setting to concerns whose en-
ployes have eXtorted commissions un-
! der threats to destroye or disapprove
goods submitted to them for test.
! Corrupt employees, the commissioii
! says. having the power 10 spoil and
! disapprove materials. have been abb.
| to Did one salesman against anoths-
! until in many cases they have ex-
! torted secret commissions. so called.
as large as 20 per cent of the goods
Sold and this eventually has been
! passed on to the consumer.
| In spite of the fact that fourteeii
states have statutes striking at th.
f; practice. it continues to grow, tbe
i trade commission says. When com
petition crosses state lines the state
statutes with respect TO trade prac-
! ticeS are not actively enforced.
| The members of Congress have bees
| told by the commission that the
stamping out Of commercial bribery
| is one necessary step to the preserva
| tion of free. open and fair competl-
| ton. The measure under considera-
ton. on which early action is expect
! ed. would prohibit not only the Civ
! ing and Offering. but the acceptance
I and solicitation Of gifts or other cor
| sideration by an employe as an in
i, ducement or reward for doing any
/; act in relation to his employers al
fairs or business or for showing or
| forbearing to show favor or disfav"r
to any person in relation TO his ehi-
business