The Western news. [volume] (Libby, Mont.) 1933-current, 1937-02-11
Bill Would Designate
Fair Trade Practices

STATE UNIVERSITY, Missoula.-
Dean R. c. Line of Montana State
university's school of business admin
istration told Ad Vents club members
in Great Falls Friday, January q, that
new social concepts" plus the expert
ence gained through NRA have made
possible friendly reception for fair
trade and practice acts both in con-
gress and the Montana legislature.
Dean Line was guest of honor and
chief speaker at the clubs luncheon.
Dean Line pointed out that since the
United States supreme court has re-
Gently upheld the California and Il
linois Fair Trade laws" many states
have either passed or are considering
passing similar acts. Montana bills
which have been introduced are the
Fair Trades bill, introduced by Repre-
sentative w. NJ Cusick of Flathead
county and signed by rs legislators, the
Fair Practice act introduced by Sena-
tor L. M. A. Wass of Fergus, and the
Anti-Price Discrimination bin which
is similar to the national Robinson
Patnan bill, and which would prohibit
special rebates.
The university dean, who has studied
fair trade legislation for several years,
discussed the history of the fair price,
pointing out that in case of certain
monopolies prices are fixed, subject to
governmental supervision, by the mon
opohes themselves. In the retail field
no such supervision has existed except
briefly under MIRA, although many
merchants have favored such legislation
since 1922.
Dean Line has made particular
studies of the history of Montana and
California trade legislation. Many state
| legislatures are adopting the California
fair trade laws intact while others have
made changes in these or in model acts
prepared by merchandising groups be-
| fore adopting them.
| OF particular interest to the Ad Vents
group was Dean Lines discussion of
abuses of fair trade practices through
the advertising of standard product
! at a lower price by retail store with
the incorrect inference that all products
In the establishment are being sold at
bargain prices. The history Of merchan-
dising has shown that the manufac-
turer whose products have won public
confidence has right to be protected
| from price wars which reduce conf
dence in his product. But many man
ufacturers in the past pleading for such
| protection have lost cases before the
supreme court. Dean Line cited sew
eraI cases where a standard product
has been ruined by price wars
| The bills introduced in the Montana
| legislature, Dean Line said, affect both
branded and un- branded merchandise.
The Fair Trade act permits sellers to
contact with buyers as to the resale
prices of trade-marked products. 1t
prohibits anyone from wilfully selling
below resale prices fixed in the con-
tract. A similar measurable Tyding
biIl-applying to interstate commerce is
being introduced in congress.
The Fair Practice act applies to any
kind of merchandise and SO applies to
goods that are not trade-marked- II
covers a multitude of cases which can
not be covered by the Fair Trade act.
II prohibits sales below cost where they
are made with intent to iniure COM
petitor and defines cost" to include all
elements of overhead The Anti-Price
Discrimination bill prohibits special
rebates.
Dean Line said that in order to en-
force the principles embodied in these
measures it is necessary that federal
as well as state acts be passed, in or
der that both interstate and intrastate
business will be covered