Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-02
RESALE PRICE BILL
AROUSES INTEREST
Measure Designed to Aid Re.
taIlers by Restoring Lib
erty of Contract.
BY J. C. RoYLE.

Progress OF the so-called resale nrice
Dill IN congress may result in drastic
changes OF policy with regard to many
forms OF retail merchandising. This
OH; which mas now been favorably re-
ported by the House Committee on in
terstate and foreign commerce would
restore liberty Of contract between nro-
ducerS OF trade marked or BRANDED
commodities and retailers To the erect
that the distributor will moi, resell ths
commodity except at the nrice stinII-
lated by the producer.
This has been q bone of contention
between producers and distributors IN
70 this nave come the chain stores and
oepartInenG stores, which handle many
trade marked. Some of these distribrI-
tors have followed policy of selIinR
marked or branded articles below the
price fixed by the manufacturer in order
to attract customers who would in their
visit to the store purchase other arti-
cleS.
Question Of Profit.
The question Of profit on the branded
articles in many cases was not a fac
tor. In some instances, such articles
have been sold at below cost to the dis
tributor. In these cases the latter sim
ply charged up the loss to sales promo
ton or advertising expense.
The practice was the cause of the
bitter trade war which has ragged in
the retail cigarette lines. Chain gro
cerieS, department stores, drug stores
and cigar store chains have sIashed
prices until in some instances the
amount received was less than cost Of
the article. The manufacturers of the
better known brands of cigarettes fixed
the wholesale price at $6.4O a thousand
Retailers in New York City have sold
these brands as low as 1895 a thousand.
loss, II both figures are correct, Of
$2.45 thousand.
AS long as the manufacturers receive
$6.40 thousand they are not affected,
but the distributors, who would not or
could not cut their profit margins close
70 or under the cost price, have COM
planned bitterly. The same situation ex-
lists In score Of trade marked and ma
tlonally advertised articles.
Representative Clyde Kelly Of Pitts
burgh is the sponsor Of the bill just
favorably reported by the House COM
mittee. Mr.. Kelly said today:
THE action of the interstate and for
eign commerce committee in favorably
reporting the Capper-Kelly fair trade
bill is gratifying to all believers Of fair
competition in business. It Is proof Of
oAAO JdobASC VI VIC SOllIClltkOIl uIkCu
through many years that predatory
shall not be permitted to
destroy standard quality goods and in
dependent distributors through cut
throat practices. There can be no doubt
as to final success in the effort to Sc
cure square deal to Independent Amer
lean business"
Measure Meets Opposition.
Distributors who oppose the measure
declare that no one has the right to
determine for any American the price
at which he shall sell what he owns.
In connection with this phase of the
the report of the House COM
mittee concludes:
And finally, and perhaps most i'm
portant for the public welfare, the ef-
feet Of this bill would be to put the
small local dealers more nearly on a.
competitive basis with the great chain
store and other combinations. It Is
generally and properly recognized that
the gradual extinction of small tnde-
pendent dealers would be q loss to
countless communities throughout the
Nation and so to the Nation itself. A
small independent dealer, who is identi-
fed with the community where his store
exists, and who Is active in its life as
q citizen and taxpayer, Is surely more
to that community than
q mere selling agency Of foreign con-
Germ"
(copyrisht, 1880