The Waterbury Democrat., 1931-05-27
lNEA Service Writerl


 Washington.-The supreme court decision which upheld Indiana's special chain store tax is expected to stimulate efforts in other states to curb the chains. ' Bitterness aroused by chain store operations has appeared to increase along with the steady increase of business and the mounting annual share of retail trade. now probably more than 20 per cent, handled by chains.
 The supreme court made no con- tribution to the old argument as to whether chain stores are good point, five justices against four, things or bad things. It made the eral government to dictate state tax that it was not the job of the fed- policies when there was no distinct conflict with the federal constitu- ton.
 The Indiana law graduates a tax l charged for an operating license from $3 for the owner of 8 single store, to $10 on from each of two to five stores under the same own-. ership, $15 on each of from six to 10 stores, $20 in excess of 10 but not in excess of 20 and $25 on every store in excess of 20.
 Chain Stores Taxed Higher The Indiana law will not drive approval by the supreme court ap- pears to have opened the way for separate classification of chain stores in taxation programs. Other states have enacted similar legisla- tion. The South Carolina legisla- tufe in 1928 imposed $100 tax on every store in excess of five under the sameownership;, North Caro- lima did the same thing, but made the tax only $50. State courts ruled against those two laws and against similar ones passed in Maryland and Georgia.
 A federal circuit court had de- cided against the Indiana statute last year, holding that it violated state and federal guarantees of equal protection under the law and declining to admit the states con- tention that a check on the growth of chain stores would promote the public welfare. Now the other states which seek to do something about chain stores may at least be sure that the supreme court will 1 okay such laws as they may pass similar to Indiana's. This type of law is the most important method
 of chain store restriction yet un- dertaken by the states.
 The famous Capper-Kelly resale
 price bill in congress which sanc- tions stipulations by manufacturers as to the retail prices of their pro- ducts, is also aimed at price-cutting
 tactics frequently employed by chains.
 l Measure Commended | Both manufacturers and many independent merchants recommend this measure. contending tat chaiIs stores can sell standard products al lower prices than independent deal CTS because of small profit margi'e $ and large scale purchases and thSlt they can even sell them at To ss
 in order to attract purchasers / tG whom they then figure on selling other products at exorbitant prot its But there is strong oppositio1 to
 the Capper-Kelly bill. Many Jon tend that it would raise priceS, to the consumer, encourage monoj )oly,
 limit competition and give ny anu lecturers control over retailers. | Although there, are estimats in- dicating that the chain store share
 of national retail trade has j. imped in 10 years from per cent tj, from
 IS to 22 per cent. such fad ts and others relating to the viol9 mt dis putes over the merit of chg ins are now being ascertained in two fed eral surveys.
 one is the census of dis sribution taken in 1880. complete Y ssuits of
 which have yet to be pubv vlshed. l The other Is the huse federal trade commission investy sation of i chain stores. which is bj ing made
 under the Brookhart resolution
 passed by the senate three years ago. B
 Begin Report G,on Recently the comm .ission an.
 nouneed that the writiB z of it's res port would soon begin. It was in- structed to investigate the extent to
 which the chain stor movement
 had tended to create monopoly or
 concentration of conts oi in the dis-
 tribution of any comp iodity, tho ex-
 tent to which chain store distribu-
 ton is now subject tg regulation and
 the extent if any of anti.trust iaW
 violations through consultations,
 any unfair methodi of cempetItioH
 or o0nspifaoIes or sdianeyantages Of
 Of ehhiR store dist rIbuti0n, relative
 influence of snvineIi on management and operating co4 and Of Hlassed
 buying power in 'tho rapid erewtIl | of chains and VI hat ieEIAIalioH, ii aUV n&uII[M I& uUM.f&M lw 0k&Nt