Jasper County Democrat, Volume 19, Number 12, Rensselaer, Jasper County, 10 May 1916 — STEPHENS BILL PROTECTS PUBLIC [ARTICLE]

STEPHENS BILL PROTECTS PUBLIC

Aimed at Dishonest Advertising and False Pretenses. TO AID HONEST BUSINESS. Measure Will Prevent Injury to Smaller Cities and Towns From Cutthroat Monopolistic Methods of Mail Order Houses and Big City Stores —Will Insure Uniform Prices and High Quality. By W. 808 HOLLAND. “A bill to protect the public against dishonest advertising and false pretenses in advertising.” This is the comprehensive title of a measure introduced in the present congress by Representative Dan A". Stephens of Nebraska. A similar bill has been introduced in the senate by Senator Asburst of Arizona. No one can find fault with legislation that will achieve the objects stated in the titles of the Stephens-Asburst bill. The public certainly needs protection ‘ against dishonest advertising and false pretenses in merchandising.” The bill now under consideration is the successor of the Stevens bill, a measure introduced in the last congress bv Representative Stevens of New Hampshire. It was widely discussed and died in committee after several public hearings, at which its merits and demerits were considered. The Stephens bill embodies the changes that seemed advisable after these hearings and discussions, and it is believed that in its present form it safeguards the producer, the merchant and the consumer. For many years the right of a producer to contract with merchants for the resale of his products at standard, uniform prices was generally reeoguized and its legality was not questioned. Then the supreme court of the United States held that such a contract was “in restraint of trade” tuid "against public policy.” The court divided on the question, 5 to 4. and the majority found no specific law forbidding the practice that had long been common, but held that congress had intended the Sherman law to prohibit such business methods. Agency System Is Legal. This court made law r upset long established custom, but it does not prevent the end sought from being reached by other means. Producers who wish to have no discrimination shown : to favored individuals can insure uni form prices for their goods by establishing branch establishments or by appointing agents. This is the method followed by manufacturers of automobiles. Rakers who sell their products ; within a restricted area can also reguI late their prices by makiug grocers ! their agents and thereby retaining title to their bread and rolls until they reach the consumer. Producers of other articles, goods sold in small quantities and which must depend on established merchants for their distribution, are denied the right that men in other lines have. The Stephens-Asburst bill is designed to restore to these producers a protection they had before it was taken away from them by the supreme court. Cut rate department stores, so called “chain" drug and grocery stores in the large cities, and mail order bouses use cut prices on standard, well known articles to draw trade away from small stores and small towns. The loss they may suffer ou these stand--1 ard articles is more than made up by j Ike high profits on anonymous goods or | goods put up under their ow n brands. I In this way the producer is injured because the reputation of his product is ruined; the retail merchant is damaged because he cannot afford to advertise widely a special bargain “bait” to attract customers to whom other goods may Lie sold at a profit; the consumer is damaged because producers are not encouraged to maintain quality and' because inferior articles are substituted.

Ample Protection Afforded. The Stepheus-Ashurst bill is not compulsory. To take advantage of its provisions the producer must register his trademark or special brand with the bureau of corporations in Washington and must pay a fee of $lO. He must not have a monopoly of articles l>elonging to the same general class of merchandise, and he must not agree with any competitor to control prices. The producer must also file a schedule giving the prices at which his listed article is sold to wholesalers, to retailers and to the consumer. This schedule of prices becomes a public document. The prices scheduled must be uniform to buyers under similar circumstances. This permits reduction In prices for quantity purchases and allowances to equalize freight rates. A merchant who decides to quit business, who wishes to discontinue any line of listed goods or who becomes bankrupt must first offer such listed articles to the manufacturers for redemption at the full price paid. Should the manufacturers neglect or refuse to redeem the goods then the dealer can sell them at any price he desires or can get. Damaged goods muslt also be offered for exchange or redemption, and if later offered for sale at reduced prices the reason for the reduction must be made known to purchasers. There Is also a clause permitting seasonable sales.