The Birmingham age-herald., 1923-07-08
BILLION IN BRlBES
Estimate Of Amount Spent In Getting
 Trade By Graft

A billion dallars Q year is paid out In trade bribes to influence and get business This estimate was made by Howard R. Heydon, president of the Commercial Standards Council, and based on reports received from trade association executives in forty industries.
 The council was formed last year to take the lead In the campaign for higher business ethics and to drive out trade graft, sharp practice. con tract violations, misrepresentation of goods and other commercial evils. It is composed of two hundred trade representatives of business associa- tions and individuals.
 The many orders ito cease and de- sst," issued by the federal trade commission against firms that go after business with bribes. have in dicated in some measure the extent of the evil.
 It is matter of record that a special agent of the departmental in vestigation of tho shipping board testified one ship chandler admitted overcharging about sixty per cent on 8 bill of S40,000 to pay for pres ents of automobiles and liquor. and the entertainment he had given to captains and stewards.
 Public Pays Bills.
 In another case on record, 8 furni- ture manufacturer, who was sure no graft was paid in his factory, quick ly got evidence to the contrary. He told a glue salesman, who declared he could land an order if he paid for 1t, to go. ahead and prove his statement In less than a week department head complained of the glue being used and wanted to change the sales mans brand.
 Though bribery takes place within the trades, the public. of course, foots the bill in the end because the secret commissions are added to the price of the graft product. The council also found there is tremen- dous waste in the graft article for the simple reason that moro of 1t Is used to increase the secret revenue.
 There Is, however, . form of brib- cry which is paid out directly by the consumer. This Is found in food and household supplies. Butchers and grocers in the moro competitive trade help on their pay rolls Many wealthy families fail to realize how much this graft costs them. Others may accept 1t as a necessary evil. There was the case, for instance, of a butcher who finally rebelled against the demands of a butler and wrote to his customer, a wealthy sC- ciety woman. that the servant as he pleased. There arc plenty of wanted $500 a month. In reply she said he could pay this money or not good butchers" she wrote, "but only ono James, whom I consider price less"
 Found In Professionals Also. Bribery and secret commissions not only infest the ordinary lines of business, but arc to be found also in the professions. In a recent address H. J. Kenner, president of the Better Business bureau, denounced these surgeons who accept and even solicit commissions on appliances prescribed for patients.
 A more polite form of business graft-but graft nevertheIess-re- suits from the influence brought to bear by directors in big companies to have orders given to products In which they are interested. Orders are switched to supply sources oi their own ownership or control. This has been charged, h fact, against some of the railroads by the employe representatives
 The Commercial Standards Coun. cil is behind many of the trade move. ments, which in recent months have formulated codes for more ethical business practice. It's program con sists of continued effort to have eff fective commercial bribery laws en. acted in Congress and the variou, states. For enforcement of these laws 1t will interest and work with trade association in the discovery of violations of bribery laws and proper preparation of cases for&ac. ton by prosecuting officers.-Nev | York World,