The Waterbury Democrat., 1939-07-10
Recent Legislation Enacted To Protect
 Little Businessman
Increase in Price of Cartons, Effective Today-Other Merchandise Marked Up to Avoid Serious
 Discrimination in Business

Cigarettes advanced in price today by two to three cents a carton, and other merchandise was marked up accordingly, as wholesale and retail merchants of Connecticut took off, cial cognizance of the "loss leader" bill which was enacted by the 1899 General Assembly.
 The bill, a boon to neighborhood stores and small business men, is aimed at alleged cut-rate tactics of larger firms, who in order to attract customers have often sold articles at prices lower than cost.
 Retailers, under the terms of the bill, are required to sell, under ordi- nary circumstances, at a price at least six per cent above cost. Whole salers must not make sales at costs les than two per cent more than their outlay for merchandie. Injunction Possible
 While the Legislature provides no criminal prosecution for violation, there is provision for the superior courts to restrain the violators by injunction. The injunction may be granted on the complaint of another party.
 Should the law operate success fully, 1t will be replacement for the well-meant but ineffective fair trade law.
 The bill provides, NO retailer shall, with intent to injure com petitors or destroy competition, ad- vertise offer to sell or sell at retail any item of merchandise at less than cost to the retailer, and no whole saler shall, with such intent, adver- tise, offer to sell or sell at whole sale any item of merchandise at less than cost to the wholesaler.
 Jurisdiction
 Evidence of any advertisement offer to sell or sale of any item oi merchandise by any retailer ol wholesaler at less than cost to hin shall be prima facie evidence of in. tent to injure competitors or de. stroy competition. Upon the com. plaint of any person claiming to b' injured, the superior court shal have jurisdiction to enjoin any sucf retailer or wholesaler from of thu commission of any act prohibited b. the provisions of this act
 A law of similar intent has beer in effect in several other states, in cluding Massachusetts, for consid erable time.
 The law itself is comparativel briefly worded, but the explanation of the terms, are lengthy. A part c the interpretation of the tern cost to the retailer" is as follows "A mark-up to cover in part tn cost of doing business, which mark up in the absence of proof of lower cost, shall be six per cent the total cost at the retail outlet
 In part, the term "cost to tn wholesaler" provides, "A nark-up t cover in part the cost of doing bus ness, which mark-up in the absenc of proof, of lower cost shall | two per cent, of the total cost at tn wholesale establishment"
 Exceptions
 Exceptions to the law are providet in the third section, as follows:
 "The provisions of this act shal not apply to advertising or offerinl to sell, or selling, at retail or wholesaler, If done with relation t (a) an isolated transaction and no in the usual course of business; (b closing out the owners stock for tn bona fide purpose of discontinuinI dealing in any such commodity whel plain notice of such purpose shal have been given to the public, O