OCR Text |
Show GUARANTEE PLAN IS HELDTO BLAME RESPONSIBILITY FOR PRICES LAID TO TRADE PRACTICE OF MANUFACTURERS. Protection of Wholesalers Against Decline Declared Responsible by Spokesmen of Business Interests In-terests of the Nation. WnsljliiKtoti. I'urtial responsibility or high prices was laid on the trade practice of manufacturers' guarantee against price decline by those who protested against the custom at hearings hear-ings before the federal trade eommis-Hinn eommis-Hinn on October 5. More than 200 spokesmen for business interests were present to advise with the commission in formulating a policy. The statement that prices would have gone down soon after the armistice armis-tice In many lines had the price guarantee guar-antee practice been unknown In commerce, com-merce, was brought out in answer to questions by Chairman Murdock, who asked for opinions on that phase. Without exception opponents of the nystem declared their belief had been confirmed by breaks iu commodities where the practice was not employed. They cited the sugar and silk markets ns typical. .1. A. Goldsmith, representing the Silk Association of America, said the guarantee could be construed in no other light than as a means of maintaining main-taining "a generally high level of prices and mitigating against any reduction re-duction which would have followed natural operation of the law of supply and demand." L. F. Boffey of the National Assoei-fltion Assoei-fltion of Purchasing Agents, held that no legitimate attack could be made on the guarantee system on ethical grounds as the law established the right of a citizen to employ trade methods of any kind so long as they Iid not tend to monopoly or discrimination. |