The Washington times., 1923-03-25
LURE Of LABEL
TAKES MONEY
FROM CAPITAL
Fair Buyers Frequently Have
Last Season Models Foisted
on Them, investigators Find
ASK LAW TO CURB PRACTICE
Local Dealers Say Agents
Who Pay No Taxes Make
Competition That's Not Fair

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Washington women are spend
ing approximately $4,000, 900 an
nually on wearing apparel pur-
chased in hotels here from "itiner-
ant merchants"
Hundreds Of women who 'like
che label" are passing the door of
the merchant who has been long in
business here and making their
way to the strange, velvet-voiced
salesman from another city.
CALL CAPITAL EASY.
The National Capitals fame as
can easy place to unload has made
the city dumping ground for out.
of-town stores which find them,
selves overstocl1ed In styles Of sew
eral seasons past.
These are the facts revealed by
aa investigation by the Better Bust
mess Bureau and District Tax
Collector's office.
=. x. wholley. director Of the
bureau. declared yesterday that
most OF the sales are made because
they bear labels from New York,
Philadelphia and Chicago. Many
Washington women. he said. are
eager to show their friends that
they do not purchase local goods
but edo their shopping" elsewhere.
DEMAND TAX ON GOODS.
Charles A. Russell. Of the Tax
Collectors office. has been cooper
ating with Mr.. Wholley. OF the
Better Business Bureau and Charles
y. Columbus, secretary OF the
Merchants and Manufacturer
Association, in an effort TO force
these ''itinerant merchants" to pay
q license.
The visiting statesmen make 1t q
practice to come to washington
and display their wares in hotels.
Under the pretenae that they make
no actual sales. but are merely
showing samples to persons they
hope to make customers later they
have In the past paid no tax. They
said that was the practice in other
cities.
Mr.. wholley, however. declares
that his investigation proved that
sales were made. When these re-
presentations were made at the Tax
Collectors office, Mr.. Russell took
q hand, with the result that the
stocks have been appraised and
taxes collected. Vigorous protest
has been made in each instance,
but the tax collector has In virtually
every case collected.
UNFAIR TO MERCHANTS.
Washington merchants. Mr..
Wholley points out, are required,
because Of competition and the
nature Of their business, to main
tain a full stock Of goods fifty-two
weeks OF the year and keep a large
force OF employees to handle it.
when Washington woman
makes a purchase from an itinerant
merchant and finds the article of
no value, she has no recourse what.
ever" said Mr.. Wholley. ION the
other hand, should that purchase
be made of Washington mer.
chant, he is always eager to make
good the article IL there is a defect
or If the customer is not satisfied.
1.-The itinerant merchant comes
to town, holds q showing Of his
etuff. disposed Of II at the least
expense possible and leaves. In
1eft-overs from stocks Of the parent
firm which proved unstable back
home
CITES LARGE SALE.
"These visitors pay no taxes, face
no responsibilities, do not invest in
store and fixtures, employ no Wash.
ington people and support no Wash.
1ngton institutions"
Mr.. Wholley cited one case where
q New York firm sent its repre-.
sentatives to Washington several
weeks ago. That firm. sold 900
worth Of women's wear here in
less than ten days.
They like the IabeI' said Mr.
Wholley, That appears to be the
explanation. 1t is not because the
goods are In style. On the other
hand, the styles shown here are
usually held over from last season
and sometimes are several years ole
and are merely the leavings' of the
big town."
SELL TO STUDENTS.
Washington merchants trouble.
do not stop with the "hotel stores
A large number of out-of-towr
stores send agents here who worI
among college students and sci
them everything from hats t.
shoes.
What are we going to do abou
It? We are going to ask Congress,
for legislation to curb this sort O
business" Mr.. Wholley said. TIL
Better Business Bureau and Mer
chants and Manufacturers Asso
citation are already at work on plan
|, to be laid before the next Congress
in the hope that safeguards ma,
be thrown about Washington mer
chants who for years pave beei
deprived OF millions Of doIiars WORT
Of business which IL legitimateI
theirs"