Evening star., 1932-01-26
PLAN TO MAINTAIN
PRICES ADVANCED
Economist Suggests Manu-
facturers Be Given Power to
Check Rate Cutting.
BY BRADLEY w. TRENT.

Special Dispatch to The Star.
NEW YORK, January 26.-Legisla-
ton giving the manufacturer the right
to refuse to sell to any dealer or dis
tributor for any reason whatsoever Is
recommended in a survey on price cut
ting just completed by Prof, Edwin r.
A. Seligman, economist, of Columbia
University.
The survey was begun about a year
ago, and embraces about 90 industries.
The work was sponsored by Edward
Plaut. chairman of the New York Board
Of Trade committee appointed to make
special study of the problem. The
full report on the survey will be pub
lished in February. Some of the salient
points made in the report, however,
were made public yesterday by Mr..
Plaut.
Condemns Price Cutting.
Prof. Seligman concludes that preda-
tory price cutting constitutes a real
menace to the welfare of retail trade.
He strongly advocates legislation where
by prices may be maintained.
Prof. Seligman's report is regarded as
a bulWark for the Capper- Kelly bill
which seeks to legalize the making of
contracts to maintain retail prices. The
bill now before Congress presents the
most clear-cut method of restoring the
right OF maintaining prices, says the re-
port, adding: Our investigation has
uncovered no fundamental economic
basis for opposition to this form Of
price maintenance. The Capper-Kelly
bill, in our estimation, would mark a
distinct step forward, despite some of
the criticism which may be legitimately
preferred against it."
Should the Capper-Kelly bill fail to
pass Congress, however, Prof Selignan
believes more conservative measures for
resale price maintenance may meet
with success. For such a contingency
he reVives faith in the refusal-to-se1l
method of price maintenance, and rec
ommendS the elimination of all possible
legal barriers which today keep this
from being effective.
The report embraces five main points.
1t recommends legislation making It
legal in every respect for manufac-
turer to refuse to sell any dealer or
distributor for any reason whatsoever.
1t suggests revision of the law to
make legal the interchange of informa-
ton in the trades about price cutters.
1t proposes special machinery similar
to the Federal Trade Commissions
trade practice conferences, but confer
enceS economically run by business
men
To strengthen the refusal-to-sell plan
1t suggests law to permit making con-
tracts whereby manufacturers could
oblige wholesalers and jobbers to re-
fuse to sell to those retailers to whom
the manufacturer does not want to sell
Tor any reason. In connection with
these contracts it favors legal action by
manufacturers against violators of these
distribution controlled contracts on the
ground of violation of property right.
Business Rivalry.
Practices which were more or less
bearable during the period of prosper
lty, the report reads were felt as
unbearable during hard times, especially
IN view of the fact that business rivalry
has come more and more to assume the
character Of cut-throat competition.
Some of the price cutters themselves
have become doubtful as to the wisdom
OF their policies, and the controversy
as to the distinction between, fair and
unfair competition has fared up anew
Prof. Seligman has an international
reputation as an economist. He lis at
present economic adviser to the Cuban
government.
Copyright, 1s32D