Evening star., 1936-07-26
PRICE LAW CHANGE
MOVEMENT BEGUN
Robinson.Patman Act Has
Caused Confusion of
Business.
BY WILL p. KENNEDY.

JILL -
Tremendous pressure will be ex-
erted on Congress in the sessions open
ing January 5 to strengthen and
clarity the Robinson -Patrlan price
discrimination act, slapped together
and rushed through in the closing
hours of Congress.
This new law, which has been ef-
fective since June 19, has caused
confusion throughout the business
structure of the country. Many argue
1t cannot be administered.
Few manufacturers or business men
know what they can or cannot do,
1t Is contended. The Federal Trade
Commission has thus far declined to
offer any Interpretation and, though
hundreds of the ablest attorneys have
made analyses, few Of them agree.
This law means drastic changes in
many Of the country's largest busi-
nesses. It is asserted the law will
put many out of business, since it
makes such important changes in the
distribution system. 1t has already
affected the advertising business. Ad-
vertising managers have cut off ad-
vertising allowances they did not want
to grant. The manufacturers are
canceling allowances to chain stores
and that must naturally result in the
chain stores going in more extensively
for advertising their own special
brands.
Generally, it may be said that the
manufacturers are going to look with
favor on the legislation to relieve
them Of some Of their burdens. while
the distributors are largely against
the law. 1t is conflict of interests
And the Federal Trade Commission,
which administers the main features
Of the act, has no money to set up
any extra force to perform this duty
Two Acts in One.
The Robinson -Patman act Is, in
fact. two acts in one-each part to
be administered by a different Gov
eminent agency. Federal Trade Com
mission attorneys will probably agree
with leading attorneys who have writ
ten interpretations" that section !
Of the act, which is an amendment
of section of the Clayton act. is to
be administered as distinctly separate
from section 3, as though they were
entirely different laws. The Depart
ment of Justice has set a special staff
in the antitrust division to do police
duty under section of the new act
the criminal Section-Assistant Attor.
ney General John Dickinson an
nounces. He explained that the De.
partment Of Justice may initiate
action of its own accord under this
section, but it is a definite policy oi
the department to act only after COM
plants have been received. In other
words, no attempt will be made by
the department., according to response
BILE officials, to send out investigators
to look for viola tions
Section of the bill was to protect
orders of the Federal Trade Commits
sion issued under the old section ;
of the Clayton act.
1t was never expected that the bill
would pass-but finally it came out
of conference committee as a com.
pilation from some half-dozen bills
without any harmonizing of conflict
ing purposes. Now it has all business
disturbed, since 1t affects any sale OF
purchase in interstate and foreign
commerce.
Originally the Patman bill was in
troduced, supposedly at the instance
of those who feared that their whole
sailing function was on the wane and
the primary purpose was to put in a
legislative stop gap, to prevent direct
sales by manufacturers to chain
stores, allowing them the brokerage
commission.
Extensive hearings were held by the
House, but Senate Leader Robinson
had the bill, which he jointly spon-
sored. reported by the Senate Judici-
ary Committee without hearings and
passed with little debate.
The object of the bill Is to amend
section of the Clayton act SO as
to suppress more effectually discrim-
nations between customers Of the
same seller not supported by sound
economic differences In their busi-
ness positions or in the cost of serving
them. Such determinations are
sometimes effected directly in prices,
including terms of sale; and some
times by separate allowances to IA
vorite customers for purported serv-
ices or other considerations, which
are unjustly discriminatory in their
results against other customers.
When the nrovjcioOS of fhA Roro n .
Van Nuys bill were included the re-