Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-15
.OpinionsCIash
AT Hearing on
Fair Trade Bill
Government Agencies
Divided on Merits of
Proposed D. c. Law

Sharp clashes of opinion be-
tween two Federal agencies, as
well as business and consumer
groups, developed at a Senate
hearing today on the proposed
enactment of a so-called fair
trade act for the District.
Opponents said it was price,
fixing, price-raising measure
that would lead to higher prices
here. Proponents said it was
necessary to maintain economic
stability and to prevent dis
count houses from running the
business of standard retail out
let's.
The hearing was held before
the business subcommittee of
the Senate District Committee.
When the subcommittee will act
was left in doubt. The record
is to be kept open for the filing
| of further statements until
8 am. Monday.
Against Consumer.
The proposed bill was assailed
as contrary to the interests Of
the consumer by Stanley N.
Barnes, Assistant Attorney Gem
eral in charge of the Antitrust
Division, representing the JUS
tice Department. He reported a
survey in April and June of this
year. based on advertised prices
OF drug and other trade marked
products, showed prices here
were q or % per cent below
those in fair trade" areas.
The Federal Trade Commits
sion stood by its position that
while on the merits of the case
the ETC probably would adhere
to its historical position that it
was bad legislation, it assented
to its application to the District
because As States had it under a
policy" it said Congress had
adopted.
This brought a blistering at.
4 tack from Senator Morse, Inde-
pendent, of Oregon, who told the
ETC witness that the trade COM
mission position represented "a
form of intellectual prostitu-
ton.
The Oregon Senator praised
the Justice Department for
stoutly standing against legisla-
ton 1t considered bad. He added
no one ought to recommend ex-
tension of a bad public policy
i and said Il repudiate the PHI
loSophy that the end justifies
the means and repudiate the
Federal Trade Commission.
He took the position that the
ETC in effect was recommend
ing the application of the law
to the District and denounced
its statement as representing a
dangerous philosophy" and one
that would tend to keep bad
laws on the books and strengthen
the activities of pressure groups.
If the enabling acts passed by
Congress and the laws of the As
States are bad he said, moves
rather should be made to repeal
them than to work for their ex-
tension into the District"
No National Policy.
Mr.. Barnes declared that the
Miller-Tydings and Mcclure en-
abling acts passed by Congress
did not commit Congress to a
national policy" as had been
commended by Earl Kentner, chief
counsel for the ETC.
The April and June comparison
OF prices of drugstore items,
based on advertisements for
stores in the District, he said
showed that on 736 items the
fair trade" price totaled ST.
241.l0 whereas the "non-fair
trade" prices on the same items
totaled $l.6O2.44, or a saving
of 28.4 per cent.
In the appliance field a similar
comparison on 245 items, he
said, showed a total of $6,142.33
under fair trade" as against
$4,442.69. or saving to the con-
sumner of 27.7 per cent under the
latter.
He repeated the Justice De-
partment's position that enact
ment Of the bill would place
Congress on record as favoring
elimination of price competition
among retailers. This would
have the result he said of higher
consumer prices; throttling Of
initiative by retailers; give adj
vantageS to chain stores and
provide opportunities for boy
cotting and other coercive
tactics.
Mr.. Kentner said the ETC
thought it was questionable
whether merchants in the Dis
trict should operate under laws
different from those of As States.
including Maryland and Vir-
| ginia.
| Nearby Competitors.
/ One member of the ETC, AL
bert A. Carretta. 1t was brought
out, went farther than his coll
/ leagues to recommend directly
that the law be adopted for the
District. His argument was that
only this way can merchants in
Maryland and Virginia be re-,
lieved of unfair competition" by
District stores.
Bernard N. Burnstine, presi-
dent of the District of Columbia
| Business Practices Council,
argued that the Washington
Board of Trade and the Mer-
chants and Manufacturers AS
ISOLATION, as well as long list
of retail trade groups here, we're
urging passage of the bill. He
voiced fears that without the
protection of a fair trade law
scores of small merchants here
would have to close their doors.
Robert F. Kneipp, assistant
corporation counsel, told the
e,,kn 1890 - s&k.n 49, rNt.k.s.G 49,.