Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-02
Chain Store Warfare
Reaching Crucial Stage
BY HARDEN COLFAX.

Warfare between independent mer-
chants and chain stores is rapidly
reaching the crucial stage, legislatiyely
II not economically. The roar of the
heavy guns Is heard this Winter in
practically every State Legislature that
Is In session. One of group of guber-
material candidates in Alabama appar-
emily is making his campaign center
on this particular battle, and a Skin
mish marred the peace and quiet of
the national Congress this week.
1t Is no mere figure Of speech TO
employ such terms to this conflict.
There is every indication that the ris-
ing nl-feeling resulting from the enor-
nous spread of chain retailing in the
last decade is going to be brought
forcefully to the attention of practi-
cally every community of $500 or more
inhabitants within a short time, If
such attention has not been claimed
already.
For q half dozen years efforts tn
enlist legislation as an ally of The
independents have been made. Five
states have enacted special tax pro-
visions aimed at chain stores; in two
the courts have ruled such measures
unconstitutional and test cases are
pending in the others. Before the
year closes other States will have MADE
attempts to reach The same objective
III one way or another.
economically, the fight is intensified
IN a dozen different sectors, ranging
from combinations of independents for
mass buying and increased advertising
through research bureaus for Statistical
ana accounting purposes, to plain, old
fashioned boycottS In which independ-
ems ana their employees agree not to
patronize chain stores for personal
purchases.
For several years there has knocked
at the doors OF Congress, promoted hy
individuals and by the American Fair
trace League, measure which II en-
acted would legaliZe contracts between
producer or wholesale and the retailer
whereby the vender of branded goods
could dictate the resale price.
WIN OF its 81 members voting
In opposition, the House committee on
interstate and foreign commerce last
week reported this bill, modified from
its original form, but retaining the es-
sential feature, with a recommendation
that 1t be passed.
In the report of this measure, the
committee Cor its majority speaks
without mincing words It points to
testimony that some dealers advertise
cut prices on goods well known to con-
Sumers in order to attract them into
their stores and then sell them other
staple articles "at higher than a fair
price" and it uses such terms as "cut-
throat competition"
And finally, and perhaps most i'm
portant for the public welfare" says the
report, "the effect of this bill would be
to put the small local dealers more
nearly on competitive basis with the
great chain store and other combina-
ton. 1t Is generally and properly recog-
nized that the gradual extinction Of
small Independent dealers viii be loss
TO countless communities throughout the
Nation, and so to the Nation itself"
Consumers would benefit rather than
be harmed by such legislation, this very
interesting report asserts.
4 + n
This price maintenance bill links In
closely with the independent merchant
chain store struggle, it may be seen,
yet 1t is opposed by many retailers who
at the same time oppose chains.
So far as concerns uniform resale
prices OF trade-marked goods, powerful
firms now do so, entirely legally,
through agency systems or simply bv
refusing further supplies of their goods
to distributors who cut prices. But less
strong producers or wholesalers cannot
follow these methods, which have been
upheld by the Supreme Court.
In the fight for the consumers dol
lar between the cAain stores and the
independents, many manufacturers and