Evening journal., 1923-01-22
GROCERS DENY
UNFAIR TRADE
Say Refunding Plan Is
Necessary for Protection
of Business
FEDERAL TRADE
COMMISSION ACTS


mission that the Tri-state Whole
sale Grocers Association employ
unfair" methods are denied by w.
A. Hannigan. president Of the latter
organization and the head of local
wholesale house.
The commission AYERS that in pur-
chase OF products members of the
association discriminate in favor of
manufacturers who guarantee a re-
fund, If prices decline. and that lists
Of such manufacturers are used CO.
operattively by members OF the asso-
citation and other similar organiza-
tions. This system. the commission
contends. results in a purchasing list
which excludes manufacturers who
do not use the guarantees against
price decline systems, and thereby
amounts 10 an unfair method of
competition.
The commission further charges
that the association has adopted
plan of obstructing and preventing
competitor company from selling
its products in the states Of Penn
sylvania, New Jersey, Delaware and
Maryland TO the associations mem
bers and others.
Mr.. Hannigan is one of the officers
named individually as respondent.
He will be allowed thirty days
to answer the complaints before the
case comes up for trial.
ITO one familiar with the whole
sale grocery business the charges are
untrue and nonsensical." he said.
when interviewed last night at his
home, 1913 Gilpin avenue. The
method which some manufacturers
have OF guaranteeing the price OF
an article against a declining mar
ket, Mr.. Hapnigan declared, was alb |
solutely necessary. II IL were not |
employed the wholesale merchants !
would not take the risk OF buying a |
large amount of a product in case the |
price fell. and THE would force the /
manufacturer to own large ware
houses at all convenient points of
In the States However,
he brought out that when a product
is guaranteed tho wholesaler will buy
in carload lots instead of few cases
at a time.
Mr.. Hannigan said that just be-
cause a certain brand OF a product
had a safe guarantee was no reason
why II would find a reader market
than any other brand. For instance,
he said. in the case OF a product OF
two condensed milk companies, one
gives unlimited price guarantees
the other allows a guaran
tee of only 30 days. but he pointed
out that despite this there Is 20
times as much of the former milk
sold in the city than OF the latter.
IN regard to the Lists OF manu-
facturers who guarantee a refund
when prices decline Mr.. Hannigani
said that such lists are made simply
as benefit for the members of the
and that the Association
In no way advises It's members from
whom they should buy.
II Is understood that there will
probably be meeting OF the
Grocers' Association on
at Philadelphia At
which time statements as to the
'tand that they will take in regard
o the charges of the Federal Trade
Comm ission, will be made.
The officers and members Of the
Association who are named individ-
ially as respondents. and who will
,e allowed thirty days to answer the
complaint before the case comes
or trial. are: Robert l.. Montgom-
,ry. Charles T. Fox, Percival
iraves. George Lpplncott, Max
'inkus, Robert G. Bursk, +. B.
Reeves. Jr.. and James Hewitt, all OF
william A. Hannisan, Whining
on: e. J. Morris. Reading: Harry c. ,
blackwell. Trenton; c. w. Burnett /
George c. Kelchner {
Altoona. Pa. r. l.. Ruark. Sauls- {
Jury. Nd. Harry Stoddard, wilkes s
3arre. Pa.s ]. F. Schneider. Mount ]
carmel. Pa; Charles NJ. Stauffer.
Pa: T. ]. Sproul
Chester; G. w whettliRg. Scranton,
Pa: H. G. Kurtz. of Reading, Pa" {
md Array Davis. Easron, Pa.