Evening star., 1939-06-05
House 10 Take Up
District Fair Trade
Practices Bill
Roosevelt Is Opposed
To Action Until
Studies Are Completed

A so-called fair trade practice"
bill for Washington, favorably re-
ported last Thursday by the House
District Committee, is scheduled to
come up in the House June IL.
Objected to by President Roosevelt
until studies of price fixing practices
are completed and opposed by some
consumers groups, the bill would,
if enacted, establish minimum re-
sale prices of competitive COM
modities bearing distinguishing
trademark, brand or name" through
voluntary contracts. The contracts
covering such commodities would
bar:
l. Offering or giving of any ar
ticle of value in connection with
the sale of a commodity covered
by contract.
2. Offering or making any conces-
sion of any kind whether by CIV
ing coupons or otherwise) in con-
nection with such sales.
3. The sale of such commodities
in combination with other commodi-
ties.
Kennedy Author of Bill.
The bill would designate such
practices as unfair competition"
and make them "actionab1e at the
suit of any person damaged thereby"
introduced by Representative
Kennedy, Democrat, of Maryland,
the measure is intended, according
to its caption, ito protect trade
mark owners, producers, distribu-
tors and the general public against
injurious and uneconomic practices
in the distribution of competitive
commodities bearing a distinguish
ing trade mark. brand or name"
First, the bill provides that no
contract designed to keep goods
within the scope of the measure
from being sold at less than mini
mum prices would be 'in violation
of any District of Columbia law"
Specifically. it would authorize such
provisions that buyer will not re-
sell commodity at less than a
stipulated minimum price; that the
buyer may require of any dealer to
whom he may sell an agreement
that he will not, in turn, resell at
less than the minimum, and that a
buyer may agree not to sell to whole
salers or retailers unless similar
agreements concerning prices are
obtained.
Some Exceptions Made.
Some exceptions are made. These
include the closing out of stock
when the trademark, brand or
name is removed and is not used
in advertising and when goods are
altered, second hand, damaged or
deteriorated.
The bill also provides that no
minimum prices shall be established,
under contract provided by the
measure, by any other person than
the owner of the trademark. brand
or name, or a specifically authorized
distributor.
Favorably reported once before,
the bill was recalled from the House
calendar in April at the request of
its sponsor, Mr.. Kennedy, so public
hearings could be held on it.
Among those who appeared
against the bill during the hearings
were J. c. Wilson and Corwin B.
Edwards of the antitrust division of
the Justice Department.. w. r. Ogg,
Washington representative of the
American Farm Bureau Federation;
Miss Mildred Price of the Women S
Trade Union, and o. M. Kile, WASH
ington representative of Sears-Roe-
buck Co. Among those urging the
passage of the measure was Roland
Jones, jr.. Washington representa-
tive of the National Association of
Retail Druggists.
In asking Congress not to pass
the bill the President pointed out
that a study of fair trade acts
has been undertaken by the Fed
eral Trade Commission and the
Temporary National Economic Com
mittee. He suggested that the bill
should not be considered by Con-
gress until these studies are COM
pleted.
However, the House District Com
mitteer, urged by Representative
Seccombe, Republican, of Ohio, IA
vorably reported the bill last Thurs
day. In urging action now Mr..
Seccombe said A States have fair
| trade LEGISLATION,