Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-21
Bill to Check Price Cutting
Declared Wrong in Principle

Few words Of approval come from
the country in connection with passage
by the House OF the CapperKelly fair
trade" bill, to authorize manufacturers
to make contracts with retail dealers
fixing specific prices at which commod-
tiles could be sold. Amendments which
were adopted are believed to have been
added as a means Of killing the legis-
lation. and 1t Is argued that in any
form the measure would destroy COM
petition in business.
Business men might reflect" sug-
gests the Buffalo Evening News, that
II they seek laws to prevent the effects
Of competition in cutting down their
profits. they invite, as a natural COrol-
larry, legislation to limit the rate OF
profit which they may make. Govern
mental policies may not seek to pro-
mote some single interest alone, regard
less OF others, but must consider the
general welfare" The Evening News
states that the bill was aimed partic-
| ularly at price cutting by dealers In
,, foods, especially at the operation OF
| chain stores" and that paper continues
The series of amendments which were
offered in a spirit OF ridicule reached
climax in clause excepting from the
| bills provisions such necessities of life
as meat, meat products, -four. fiouI
products, agricultural implements, tools
! Of trade, canned fruits and vegetables
/ all clothing, shoes and hats"
The am ndments impress the Lincoln
State Journal as limiting the scope OF
| the bill and providing many loOphole
by which the provisions of the measure
could be escaped" although it was
| thought that under the original meas
ure the independent merchant would
| be protected" The State journal con-
.inues: "A price-fiXing bill is naturally
| regarded with suspicion by the public
The House received the Capper- Kelly
| bill with this same suspicion and. rath-
| er than take any chances. loaded it with
amendments so that even It's friends
| say it is worthless in its present state.
"In one form or another it has been
very properly thrown out Of every Con-
greSs for more than 30 years" says the
springfield MASS Union, with the con-
tention that though its proponents al
present claim that 1t is measure to pre-
vent price cutting by chain stores, the
plan was proposed long before there were
chain stores; that 'aS matter of fact
| the chain stores have not appeared
! conspicuously as directors to the meas
/ ure." The Union doubts the cCnsti-
Uutionality of the bill, and conclude:
|
! tive effect on consumers: Were 1t Il
become a law in its present form oil
in any form in which it would be al
all likely to pass, its probable effect
would be to deprive many stores anC
the consumers in general OF advantage!
often derived from bargain sales Oh
| from competition of any kind. Like
other measures intended to cover speci
fied objects, it would in all probabllit!
have wholly unanticipated and plainly
undesirable effects in other forms o
business transactions"
"Ostensibly intended to protect the
retailer in the sterilization of prices,
thinks the st. Louis Times, the mair
object OF the law is to legalize thu
fixing of resale or tO-the -conSumeI
price of trade marked articles by thu
manufacturer. Many producers haV'
wished to be able to set the ultimate
price, and there have been legal test
of breaches by merchants, but the!
have not been heretofore secure IL
law. Argument OF convincing
kind has been made both pro and col
as to the fixing of prices by the manu-
facturer to the ultimate consumer. Thu
rule ought to hold that business should
be as free from law as possible, Thu
bill gives the manufacturer the lega
right to contract with the retailer re
garding resale price. The retailer, how
ever, has the right of declining to entel
into a contract. Altogether, the law i
another one of those silly things tina
make for gray hairs in the world o
commerce"
|
"The whole principle is open to ques
ton" advises the Albany Evening News
dcclari"c rs to the orc"t IF the fnoa@'rr
that it practically makes a retaile
simply a manufacturer agent" an
that 1t might prevent him from bust
ness turnover IN stock that would saw