August 21, 1920.
UNFAIR PRACTICES
ARE DEFINED
The Extent of Them and the Infinite Variety
of the Offenses Against Good Business
Told in Plain Language
by Federal Official.
Time and again the piano trade with tortured
spirit has confessed to unfair trade practices and
each time it has shriven itself. Time after time
came relapses to the sinfulness of the contest and
the guessfest and the misleading ad. The intervals
between periods of gracelessness became longer.
The trade was remaking itself. It is remade. It is
safe to say there are few trades today so free
from what are called unfair trade practices.
But the unfair practices are quite common in
the field of commerce. What constitutes the prac-
tices grouped under the head of offensive was the
theme of a recent address of William B. Colver,
member Federal Trade Commission, before the
Advertising Convention. Here are some:
Gives Them a Name.
Misbranding of articles as regards the materials
or ingredients of which they are composed, their
quality or their origin or source.
Bribery of buyers or other employees of cus-
tomers, with money, valuable presents, etc., to se-
cure new customers or induce continuation of pat-
ronage. The payment of specified percentages of
the purchase price of commodities to employees of
customers who practically control the purchases
through their recommendations, has been and still
is deplorably prevalent in some industries. The
total amount of these commissions runs into enor-
mous sums. If the practice can be prevented, it
will save much money to the sellers of the goods,
making price reductions possible or rendering
further increases in prices unnecessary, and tend to
better business morals.
The payment of bonuses by manufacturers to the
salesmen of jobbers and retailers, with or without
the knowledge of their employers, to procure their
special services to push the good's of the manufac-
turer has likewise been condemned. This practice
has long been in disfavor among the jobbers and
retailers and the commission has been assisting in
ridding the trade of it. Akin to this practice is that
of making very large contributions of money to
conventions or associations of customers, though
this practice has been prohibited only when as-
sociated with other practices all tending unduly to
restrict competitive advantage.
Stealing Trade Secrets.
Procuring the business or trade secrets of com-
petitors by espionage on their plants, by bribing
their employees, or by similar means.
Enticing away of valuable employees of competi-
tors in such numbers as to disorganize, hamper or
embarrass them in business.
Making of false or disparaging statements re-
specting competitor's products, his business, finan-
cial credit, etc.
False or misleading advertising. There are ob-
viously many varieties of this practice. A few of
the statements condemned have been those re-
specting prices at which goods are sold, methods
employed in the advertiser's business, which if true,
would give it advantages over competitors in the
matter of prices; misrepresentation that goods are
sold at cost; false claims to Government endorse-
ments of products; and advertising special cut-
price sales at which goods are sold at the usual or
ordinary prices.
Widespread threats to the trade of suits of patent
infringement for selling or using alleged infringing
products of competitors, such threats not being
made in good faith but for the purpose of intimidat-
ing the trade.
Tampering with and misadjusting the machines
sold by competitors for the purpose of discrediting
them with purchasers.
The Boycott.
Trade boycotts or combinations of traders to
prevent certain wholesale or retail dealers or certain
classes of such dealers from procuring goods
through the usual channels.
Passing off of the products of one manufacturer
for those of another by imitation of product, dress
of goods, or by simulation of advertising or of
corporate or trade names.
• Misrepresenting the materials of which competi-
tors products are composed, and the financial stand-
ing of competitors; preventing competitors from
procuring advertising space in newspapers or per-
iodicals bv misrepresentation respecting their finan-
cial standing or other misrepresentation calculated
to prejudice the advertising medium against them.
Sales of goods at or below cost, as "leaders,"
coupled with statements misleading the public into
the belief that they were sold at a profit by reason
of the sellers superior facilities for manufacturing,
purchasing, etc.
Bidding up the prices of raw materials to a point
where the business is unprofitable for the purpose
of driving out financially weaker competitors.
Intentional appropriation or converting to one's
own use of raw materials of competitors by divert-
ing shipments, etc.
Giving and offering to give premiums of unequal
value, the particular premium received to be de-
termined by lot or chance, thus in effect setting up
a lottery.
Any and all schemes for compelling wholesalers
and retailers to maintain resale prices on products
fixed by the manufacturer. The Commission has
urged upon Congress a law that will recognize and
protect with proper safeguards, the good-will prop-
erty right which a maker of identified goods may
have after he has parted title to the goods them-
selves.
WAREROOM WARBLES
(A New One Every Week.)
By The Presto Poick.
0. K. HOUCK MUSIC CO.
ELECTS NEW OFFICERS
At Meeting in Memphis, Tenn., David Durham and
L. U. Pitts Are Elected to Directorate.
At a recent meeting of the stockholders of the O.
K. Houck Piano Co., Memphis, Tenn., J. F. Houck
was elected president, W. S. Christian vice-pres-
ident and treasurer, and J. C. McConnell, secretary.
Two new directors were elected—David Dunham and
L. U. Pitts.
J. V. Day, sales manager and a director of the O.
K. Houck Piano Co., Memphis, Tenn., has tendered
his resignation, effective Aug. 15.
Coming with the company in 1903, he has, with
the exception of 1908-09, been continuously identified
with the piano sales department, serving in the ca-
pacity of road salesman, city salesman, and city sales
manager, until Aug. 1, 1918, when he was appointed
sales manager of the piano department and made a
director of the company.
He was in the fight in the days when the "One-
price, No-commission" system was established by
the company, and is a firm and consistent believer in
these principles.
HEADS ADVERTISING CLUBS.
At a meeting of the executive committee of the
Associated Advertising Clubs of the World, held in
the rooms of the Cleveland Advertising Club in the
Hotel Statler, Cleveland, O., last week, Rowe Stew-
art, advertising manager of the Philadelphia Record,
was unanimously elected president of the organiza-
tion, to succeed Charles A. Otis, of Cleveland. The
committee set the date for the next international
convention of the Associated Advertising Clubs* for
the week of June 12th at Atlanta, Ga. The appoint-
ment of several sub-committees was authorized and
the next meeting of the executive committee was
called for Chicago for September 22, to be held in
conjunction with that of the National Advertising
Commission.
PIANO CASH IS COMING.
According to A. W. Douglas, chairman of the
committee on statistics and standards of the Cham-
ber of Commerce of the United States, the winter
wheat crop-will be about 535,000,000 bushels, and
the spring wheat crop will be not less than 275,000,-
000 bushels. With a few more timely rains, there
will be 3,000,000,000 bushels of corn, of which the
southern states will furnish about one-third. There
is a present promise of 12,300,000 bales of cotton.
These are good pointers for piano men in the regions
where the different valuable crops are raised.
KOHLER & CAMPBELL GRAND.
The Kohler & Campbell baby grand, made by
Kohler & Campbell, Inc., New York, is strongly
featured this week by the M. B. Armstrong Music
Co., Oklahoma City, Okla. This is said about the
piano: "Nothing ever attained by the piano-build-
er's craft can exceed in dainty grace and exquisite
tone, this masterpiece of the musical profession.
Built by a house that has years of distinguished his-
tory and a national reputation back of it, this instru-
ment represents all that long experience and pains-
taking effort can put into a piano."
FUTURE RAIL RATES.
The demand of the Interstate Commerce Com-
mission for quarterly labor reports from the rail-
roads is understood to be the first step in a policy
to secure the most minute and exact information
on which to base future rates. Both the Commis-
sion and the roads are particularly apprehensive
about the increased passenger rates, which, it is
.feared, may so cut down travel as to curtail the
gross return. The general opinion is that high
passenger rates will not last very long.
WHEN YOU GET BACK.
When you're back from your vacation,
To the good old store again,
Don't it seem that all creation
Ne'er could woo you off again?
And you wondered why you wandered
Far away from scenes you like—
Why your good old pelf you squandered
Just to loaf, and golf and hike.
Now you're back, the things about you
Seem to welcome you with joy,
Just as if they'd die without you—
Greet you like a long lost boy;
The pianos seem to kiss you
Reaching out with warm embrace,
Telling how they sadly miss you,
And how lonely was the place!
And the shining cases, gleaming,
Seem to mirror your delight,
When you think of hot sun streaming
Where the fish refuse to bite;
Here 'tis cool, while there 'twas torrid,
Here there's music, there no sound
Save the frogs and hum so horrid
Of mosquitos buzzing 'round!
A YEAR OF EXPORT.
The fiscal year which ended June 30 last was the
banner year for American trade, at least as regards
values. As compared with the previous fiscal year,
the largest increase in exports was in manufac-
tures ready for consumption. According to the
official figures of the U. S. bureau of foreign and
domestic, commerce, $8,111,000,000 represents the
total value of all export shipments from this coun-
try during the year ending June 30, 1920. It is an
increase of $879,000,000 over the corresponding
period in 1919. The excess of exports over imports
for the year is $2,872,000,000, a decidedly favorable
trade balance.
PACKARD MEETING AUG. 30-31.
A meeting of the Packard Piano Company's office
force, traveling salesmen and advertising force is
set for August 30 and 31 at the factory offices in
Fort Wayne, Ind. At this meeting the men, whose
work is mutual and on a broad basis of fairness, will
discuss plans for the government of their activities
during the coming harvest period of marketing.
They will give one another the benefit of their sev-
eral experiences in the different lines of the work,
and there will probably be some pleasures as side
lines toward the close of the sessions.
MUNITIONS MARKED "PIANOS."
In accordance with the plans of European labor to
cause a labor blockade to prevent war, 4,000 dock
workers at Antwerp this week dropped the work of
loading two vessels when they learned that the cases
marked "Pianos" and "Canned Goods" were actually
cases of munitions intended for use on the Polish
front.
ACTION COMPANY EXPANDS.
The Auto Pneumatic Action Company, New York,
has purchased the adjoining property to its plant at
Nos. 626 to 630 West Fifty-first street, extending
through to Nos. 631-635 West Fiftieth street, com-
prising a six-story factory and three-story stables.
The sale was made by the Farmers Loan & Trust
Company.
Over 60 per cent of the total cargo carried in ves-
sels entering and leaving United States ports during
the first six months of 1920 was in American bot-
toms, according to a survey issued this week by the
shipping board.
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