Douglas daily dispatch., 1926-01-05
VOTE ON RIGHT
OF FIXING ANY
RESALE PRICES

The attitude of 1,40o business or
ganizations throughout the country
on the question of resale price legis-
lation is being polled by the Cham
Der of Commerce of the United States
in referendum submitted to its
membership.
The result of this nation-w wide ref.
erendum, which will be concluded in
Do days will determine the chambers
policy toward the whole question of
the maintenance of resale prices. Or
ganizations will make known their
position toward this question by vot-
ing on five proposals.
Ballots will he sent out by the first
of the year from the Douglas Cham
Der of Commerce and Mines to all
members ond everyone receiving one
is urged to vote and return the slip
to the local organization.
The following proposals will appear
on the ballots:
l. Should there be federal legis-
lation permitting the seller of odenti-
fled merchandise sold under compe-
titive conditions under a distinguish,
ing name, trademark, or brand to
control the resale price thereof?
2. IF there is to be such legisla-
tion, should the legislation take the
form of permitting contracts for the
maintenance of resale prices on iden-
titled merchandise sold under com
petitive conditions under a distin-
gushing name, trademark or brand?
3. IF there is to be such legisla-
tion, would the restrictions in the re-
port of October 5, 1926, be proper
restrictions?
4. I'm addition to such legislation,
should congress enact legislation
bringing under the law of unfair
competition the cutting of the SELL
misappropriating or injuring good
as to their origin?
5. Instead of such legislation,
should congress enact legislation
bringing under the law of unfair
competition the cutting of the sell
,er's declared price which results in
misappropriating or injuring good
will attaching to articles identified
as to their 'origin?
The report referred to in the third
proposal was made by a special COM
mittee of three members. 1t speci-
flies that ANY legislation for the
maintenance of resale prices should
include in principle as proper restric-
tions the following:
Merchandise within the terms of
the legislation, sold subject to con-
tract for maintenance of price, upon
resale, should be freed from the re-
striction as to price upon resale: ID
of the purchaser shall actually dis,
continue dealing in such merchan-
disc; CD if the purchaser shall dis
continue business; CD if the pur-
chaser shall become insolvent and
some officer of a court shall have
been designated to liqufdate his busi-
ness, or ca if there should be at
tachment or levy of any kind upon
N the merchandise by virtue of a court
proceeding. The foregoing should be
subject, however, to the further pro-
visions that in each such case the
merchandise shall ahve first been Of
fered to the seller at the price ori-
ginally paid for the merchandise and
that the seller, having been allowed
reasonable time and opportunity to
inform himself as to the condition of
such merchandise, shall have declined
or failed to accept the offer.
"In case of merchandise which has
become damaged or is deteriorated
additional provisions are required. In
such cases, the purchaser should be
permitted to sell at such price as he
shall first offer the merchandise to
the seller at the price which he paid
for the same or for exchange for like
merchandise which is in good condi !
tion but that also in such cases the
purchaser should be required to give
the seller reasonable opportunity to
inspect the merchandise and that the
seller shall have declined or failed to
accept the offer Also, the purchaser
should be permitted to sell such dam
aged or deteriorated goods free from
restriction only in conjunction with
definite notice that the merchandise
is damaged or deteriorated and that
such is the reason for its being Of
fered at the reduced price,
This report was signed by Robert
r. Ellis, president of the Hessig-
Ellis Drug company, ,of Memphis,
Tenn, and P. H. Gadsden vice-presi-
dent of the United Gas Improveme ent
company, Philadelphia. The third
member of the committee, A. Lincoln
Fieine, etreasurer and general man
ager of William Filenes Sons COM
pany, Boston, filed minority report
in which he stated that he dissented
from the majority report on the
ground that "it did not sufficiently
define proper restrictions on resale
price maintenance legislation" His
views of this phase of the subject are
summed up in the concluding para