Evening star., 1925-05-17
S12,0OO,O1D SUIT
HAS LOCAL ECHO
Ford'S Right to Fix Prices to
Be Basis of Action by U. S.
Chamber of Commerce.
BY HARDEN COLFAX.

Henry Ford'S troubles in Mississippi,
where the State is trying to prove he
Is trust liable for Sl2 900 in
penalties, are due for a resounding
echo in Washington next week. The
occasion is to be the annual ConVen-
ton of the United States Chamber of
commerce and the question involved
SINNERS down TO this: should
manufacturer be authorized by law
TO nix resale prices of his product?
The question is not down for dis
cuSSlon on the advance program OF
the chambers meeting, but some OF
the delegates to whom the subject
carries vital personal appeal intend
TO bring it up, and, if possible, have
1t disposed of one way or the other.
1naSmuch as there is a clear-cut di-
vision of opinion among business men
as to the Safeguards to be thrown
around any Equalization of resale
prices, the ensuing debate holds
promise of great interest.
Chamber Favors Plan.
The chamber itself is on record as
favoring the proposal-but with ade-
quate safeguards" to prevent its
abuse. 1t went on record eight or
nine years ago. by a handsome ma
Jority, as the result OF referendum
in which virtually all it's members
participated. Since then, however,
the subject has not been pressed by
the chamber, chiefly for the reason
that its directors and others were un-
able to agree on what should be pre-
scribed as adequate safeguards.
Several meetings We're held and
various ideas presented, but it was
found impossible to bring them into
accord. Then the subject became
dormant until recently, when it was
revived a raSniIltjpn messing for
action has been offered for consider
alton at next weeks meeting, but it
is not generally considered as likely
of adoption.
The recent action by Mississippi au-
thorities against Ford for doing among
other things what many business men
believe every manufacturer should be
authorized by law to do, namely, con-
troll the price of his product clear
down the line of distribution to the
buyer, has vitalized the whole resale
question with new life. This has
come on the heels of d Supreme Court
decision refusing to countenance the
contract system making resale price
fixing effective.
Will Ask Federal Law.
Congress, which considered the
question in a perfunctory way at the
last hectic session, will be asked to
pass resale price leSlSlat1on at ltS
next session. When the last Congress
adjourned there were pending five
bills of this nature, all of which, side
traced by more insistent legislation,
failed of action in the final legislative
Jam. Some of these measures, and
doubtless others relating to the sub
ject, will be reintrOduced and plans
already are in the making to press for
action at the next session.
FavorinG the practice, with ade-
quate safeguards, are the Chamber Of
Commerce and the American Fair
Trade League, together with many
manufacturers and distributors. OPP
posing it are numerous retail eStab-
lishments and large department
stores. These establishments contend
that the manufacture interest should
be confined to the wholesale price he
receives for his wares and that there
after jobbers and retailers should have
the right to sell the product at what
ever prices they desire-even at a
loss, If they wish to do so.
1t is an old fight, buried during the
war and now resurrected. 1t is gaining
in intensity, with every prospect of
developing fireworks before it is all
over.
Copyright, 1925.)