South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-03-25
SEE CHANGES In
BUSINESS CUSTOM
FOLLOWING ORDER
Federal Body Rules Against
South Bend Bait Co.
In Test Case.

Holding that it is unlawful for
any wholesaler of commodities 10
establish selling prices discrimina-
tory TO any class of buyers. and in
stead must set net selling prices on
quantity and quality basis only,
the federal trade commission Fri
day issued an order 10 cease and de-
sist against the South Bend Bait Co.
( Of South Bend in what amounts 10
a dest case outlining the powers and
prerOgarives of the trade commits
sion.
The ruling is of considerable inn
portance and broad and sweeping in
its nature in that it sets forth code
new to and Impractical by the ma
jority OF firms doing a manufactur-
ing and a jobbing business.
The local company case is said TO
be the first Of such a nature 10 come
10 the attention of the federal trade
commission on the price schedules
the firm is now required TO adopt
one price only can prevail for job
Der and consumer alike. II cannot
adopt a scale OF prices discrimina o.
tory against one class of customers
in favor Of another class other
cases Of a similar nature are pend
ing before hte commission, It is
said, each case concerning a certain
commodity or group of commodi-
ties of a similar nature The local
case specifically covers the rule 10
be applied in the sale Of sporting
goods.
Define Basis.
The order is set forth as follows:
"The order is directed against the
practice INDUCED in by the respond
ent of discriminating in net selling
prices between purchasers Of the
same grade, quality and quantities
Of commodities upon the basis Of a
classification of its customers as
| 'jobbers, wholesalers retailers" or
customers, or any similar classical
! ton which relates to the customers
business policy, business methods or
/ the customers manner of doing
business in any transaction in, or
I directly affecting, interstate COM
merce in the distribution Of its pro
ducts"
AAt VI uEA AlANAl SUES VII ~ AEAlAlN
the basis upon which prices shall be
/ fixed to customers. Quality. grade
/ and quantity are. in short, the only
/ basis manufacturers and jobbers are
permitted to discriminate.
! Nothing contained in IT," the
/ proviso relates, shall prevent re-
spondent from discriminating in
price between purchasers of com
modities on account Of difference in
grade, quality or quantity OF the
! commodity sold, or making due al
lowance for difference in cost of Sc
/ ling or transportation or discrim-
mating in price in the same or diff
/ ferent commodities in good faith TO
meet competition"
According 10 the purport Of the
/ order, discrimination in prices TO
meet competition, however, must
cOnfine itself to an Interpretation of
the order as respect 10 classification
/ of customers.
Changes Ancient Custom.
/ 1T means the changing OF a Gus
tom of years. and for that matter
centuries standing" declared War
IltlIIlHBcs VItSlutuA anu BbutIdl
manager of the South Bend
Bait company. TO whom the order
/ by the federal trade commission was
directed 1T means that the prece-
dent invoked by the commissions
order will change the selling policy
of 90 out Of 100 concerns doing bus
mess in this country" Continuing,
he said: "Of course, our company
viii abide by the order"
Repeating that the commissions
order constituted a radical change in
+ business methods, Hennings declar-
ed thar it was his belief that manu-
/ facturers and jobbers would have 10
scrap their price lists in the hand
/ ling Of practically every article OF
commodity they handled and revise
them 10 the quality and Quantit%
4 basis only.
According 10 the commissions
ruling it is not possible 10 discrim-
/ mate between classes of customers
/ in the same locality" he said.