Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-04
BY CLINTON COFFIN,
Associated Press Financial Editor.

Associated Press Financial Editor.
1t is becoming the opinion of a num-
Der OF we'll posted trade observers that
the current year is likely to see abroga-
| ton in whole or part Of that Federal
policy, exemplifled by both Federal
Trade Commission and Justice Depart
ment procedure, which has been hostile
to price maintenance systems on manu-
featured articles The typical system
meant is the one under which the pro-
Queer of given article of merchandise
fixes the price at which 1t shall be re-
sold at wholesale and at retail. and
withdraws supplies of goods from
dealers who refuse to maintain the
levels set. 1t is startling commentary
on the rapidity of business progress in
the United States that though the
business policy outlined is relatively
new, the swift changes in the business
picture are already rendering it obso-
lete. That fact plus the general altera-
ton in administrative attitude toward
application of business law has built
up the expectation that prosecution of
the veStigeS of price maintenance Sys-
TENS in commerce is not likely to con-
tinue long after this year.
There are several conferences be-
tween the Trade Commission and bust
ness houses over the matter scheduled
number of complaints that demand ac-
ton. The Government is on record as
CHASING straight price maintenance
selling campaign applied to any article
as an unfair method of trade; the
Supreme Court has backed up the
Trade Commissions ruling, notably in
the Beechnut case, as have most Cir
cult Courts Of Appeals. Nevertheless,
1t Is becoming apparent to most of the
rOO1n icSiOf1'C hot Ha I'D 90
the chain store, and the parallel group
buying Of independent stores. has made
TREMENDOUS inroads on the field of dis
tributloM in which the manufacturer
can use the scheme. A survey of a
dozen lines shows that the attempt to
fix wholesale selling prices is being
practically given up chains and group
buyers, though, acting as retailers, gen.
orally are successful in getting the job
ber's price on their purchases, and in
many cases do quantity purchasing of
price -maintained articles at even less
figures.
Likewise, since the law on price main
tenance has been made clear, most pro-
ducers who want to maintain some
semblance of operation under the sys-
tenn have found 1t rather easy, the
opinion around the commission is to
make their general price understanding
ASee'OlioOiy CllCCOlNC WllilOuJ
the law The issuance of orders to de-
sist and refrain from specific actions
by the commission has definitely laid
down path which can be travelled.
Consequently, the next trend of business
regulation by the Government will
probably be in the direction of easing
restriction. Distribution under modern
conditions seems to be in evolution so
rapidly that attempts to fix prices are
not the factor they once were.
Work got under way this week at the
Commerce Department on the prepara-
ton of one of the Governments most
important economic enterprises, by
which it erdeavors to set down the
annual balance of international pay
ments between the United States and
the foreign world, and to determine in
what degree the Nation lost or gained
internationally. DR.. Ray o. Hall, who
directs the study. rather anticipates
that. in spite of all the country's 1929
vicissitudes In flannce, 1t will be shown
that the United States remained a net
exporter of capital during the period,
though at a reduced rate.
ut seems likely that we shall find the
total Of capital issues of foreign coun-
tries which were subscribed to in the
United States during 1929 to amount
to about 100000 900. instead of the
81 500, 100000 that was subscribed in
1928" DR.. Hall said in discussing some
of the hphaSes of the inquiry set on
loot. we are questioning the interna-
tional brokerage and banking houses on
the subject, and are endeavoring to set
up estimates on what may prove an
even more important total of exchange.
That Is as to the direct transfer of listed
and unlisted securities from the United
States TO other countries, and vice versa.
1t seems probable that in view of the
long speculative performance in this
country the amounts involved in this
international security exchange will be-
come more important. We shall have
some facts as to the degree Americans
bought back the securities OF this colln-
try which were formerly held abroad"
These subheads mentioned are only
a part of the tremendous balance sheet
that will be set up at the end OF the
inquiry. For 1928 it was determined
that in security and commodity ex-
changes. in tourist expenditure and
counter balances of transportation and
immigrant remittances. the United
States obtained from the world abroad
about $4,000, 100000 in goods gold and
services, paid for them by like items, |
and retained a balance in the form of
increased foreign investments. The ac-
count even includes estimates of the |
amounts the country spent on struggled |
liquor.
It takes q long time to modernize any
established commercial practice, one |
must conclude after studying a report |
on world methods of getting fuel INTO |
ships turned out by the Shipping Board |
and Commerce Department. III spite |
of the fact that machine devices for |
coal loading have been used for years |
in some parts Of the world, and all |
around the United States, the report |
finds that some of the busiest world |
ports, called upon by the finest and |
latest ships, get their coal supplies only |
by prehistoric methods.
The transpacific liners at Chinese |
and japanese cities get their coal from |
coolies running handbaskets up gang |
ways at the rate of rs tons an hour, |
and have no other recourse. The same |
vessels, transiting the Panama Canal. |
get II showed in by machinery. at the |
rate OF TOO tons an hour. o performance |
only exceeded by thu hast eSranrt doetrs