Evening star., 1928-05-27
Independents Arrayed
Against Chain Stores
BY HARDEN COLFAX.

With bugles silent and guns eamou-
tiaged. two great armies of business men
are marching toward the trenches of
merchandising warfare 10 struggle for
the consumers dollar. That the ma
neuvers are comparatively quiet only
testifies 10 the effectiveness Of the
preparations.
The skirmishes between the chain
stores and the independent merchants
already have caused casualties, but the
battle for which the stage now Is being
set promises to eclipse anything record
ed In commercial history.
Scouts report that the activity appears
to be aimed AZ two sectors. one eco
nomic and the other legislative. with
the independents taking the offensive,
but with the chain stores preparing not
only to defend their ground, but TO
launch strong counter~attacks.
u u
The Federal Trade Commission an
nounced last week that II had instruct
ed its chief economist to proceed with
an inquiry into chain-store operations
In response TO a Senate resolution OF
broad scope adopted without debate in
that body two weeks ago Score one for
the independent merchants, for out of
this inquiry they expect to get consid-
erable ammunition for legislative hom-
bardments But. also last week, the
House interstate and foreign commerce
committee deferred action until the
December session of Congress ON bill
to legaliZe contracts whereby the vendor
might fix the resale price OF his goods,
which delay represents clear-cut VIC
tory for the chain stores and their
allies.
Some months ago. the Federal Trade
Commission. on its own motion. under
took an economic study of price MAIN
tenance with view 90 submitting Ie-
port to Congress. but IL has not ap-
preached conclusion, The resolution
directing the commission TO report on
various phases of chain-store operations
doVetails into this price maintenance
study In some ways, but opens up a
much more broad field of investigation
In view of the inclusive character of
the Senate resolution, sponsored there
by Senator Brookhart of Iowa, an ar
dent advocate of the Roohdale plan OF
cooperative merchandising, some sur
prise was created by It's adoption with
out consideration by committee or de-
bate in the Senate, This resolution
orders the commission 10 inquire, and
report 10 the Senate, whether consolida-
tions OF chain.store systems have been
in violation ot law, the extent to which
they are subject 10 regulation by exist
ing laws whether the movement has
| tended To create monopoly or concen~
| tration of control OF distribution of any
| commodity, either locally or nationally;
any evidences OF unfair competition of
agreements In restraint or trade ud~
vantages OF disadvantages of ehain~store
distribution compared With other types
OF merchandising, how far the growth
nf Chain~store syatoms IL based ON say
ings IN management and operation and
, how far upon quantity prices available
| only To such systems, whether quantity
prices violate any law and what leglSp
| latlpn, II any, should be enacted IN re-
! gard 10 the entire situntidn,
u
| II win be- realized that this inquiry
embraces highly important phases OF
modern merchandising, some of them,
indeed affecting More than nsatnre
| aystema The quantity price lnAtfnc~
tt0na, for instance, may open the entire
subject 0f wholesale discounts.
The independent merchants are dis
| turhed over the mass buying power Of
the chains, In many eases, thsy are
| trying 10 meet this by organizing a buy
| ing association among themselves, An as
| 10 purchase IN larger quantities, which
In one OF the economic phases Of the
, present warfare,
But The independents also are inter
Gated yltallg In the "Iair trade" or
price malntnnaneen bill, which has
been befura CQngTehA for AlA ysAta.