Radio today (Sept 1935-Dec 1936)

RADIO'S PRICE PUZZLE — mild cases of Robinson-Patman jitters — experts speculate on practical effects * ONLY incidental squirming has been noted among price discriminators of the radio industry as a result of the enactment of the Robinson-Patman Anti-Price Discrimination Act. passed at the last session of Congress. Radio execs divide their time between (1) muttering at their legal advisors, (2) eyeing the movements of the Federal Trade Commission, (3) waiting for a radio test in the courts, (4) wondering whether the next Congress will revise the law, and (5) speculating on what appropriation will be made by Congress for the enforcement of the law. Radio Today has actively interested itself in what the practical effect of the law will be within the next twelve months. Above some wellknown names of the industry the editors have received spirited replies to that query, presented herewith. Geddes speaks From Bond Geddes,, member of the Federal Bar, executive vice-president and general manager of the Radio Manufacturer's Association : "You may quote me as stating that the new law presents some most complex merchandising problems, which will take months, if not years, to clarify. All RMA members were advised when the Robinson-Patman Bill was before Congress. They were sent copies of the new law and an analysis of the National Association of Manufacturers. Also our members have received a digest of the new law from the RMA counsel, Judge Van Allen of Buffalo. Executives of radio companies with their counsel are engaged in an exhaustive study of the new law. "Today no company knows, without any doubt, whether it is operating in violation of the law or not. I am advised that the Federal Trade Commission will not issue any rules or regulations of general application but that it will administer it similarly to the original Clayton Act by rulings on cases as they arise under the Act. The Commission also will not give any informal opinions upon the legal status of matters presented on basis of hypothetical or ex parte statements of fact. In the months to come I believe that considerable changes in radio merchandising and practices will result. I also venture the personal prediction that the Act will be revised by Congress and probably at the next session." . Neagle's views From a statement prepared by F. E. Neagle, and approved by the Executive Committee of the National Electrical Manufacturer's Association, for distribution to all members of NEMA for their information and guidance: "Business men must not believe that they can do nothing to bring their activities into line with the new law. That will, in time, certainly lead to trouble. "It seems reasonable to conclude that each member of the industry should at once, if he has not done so already, present the facts of his business policies, in so far as they deal with questions arising under the Robinson-Patman Act, in as full detail as possible to his counsel so that he may obtain from him a definite and specific opinion on the facts as to the MISCELLANEOUS MISCHIEF INSPIRED BY THE ROBINSONPATMAN TUG-OF-LAW 1. Big concerns consider organizing branch houses, to bring their transactions within boundaries of a single state. 2. Sellers try out methods of making contracts without naming quantities. 3. Manufacturers consider new variety of private brands in order to offer buyers different specifications. 4. Chain stores eye the possibilities of making their own products. 5. Suppliers look into the question of making price agreements among themselves, within the provisions of anti-trust laws. application of the law to his business. "The Federal Trade Commission cannot be looked to for advice on what the law means. Even were it the function of the Commission to give such advice it has been quoted as stating that it would not attempt to advise in specific cases as to the meaning of the law. Its interpretation will come only by way of cease and desist orders in specific cases and then its view is subject to the review of the courts. "Views of lawyers as to the meaning of the Act differ. Unanimity of opinion as to the interpretation of the act does not exist. For that reason it is repeated that individual cases need individual advice based upon the specific state of facts that exists. "There is no question that the enforcing agencies of the government are as much in the dark as business is. They are not supermen or gifted with clairvoyance. They must move slowly and cautiously and it is believed that they will. Business men should not rush headlong into new and untried ways of doing business. They too should move cautiously and carefully." Ne/7son's angle From Franz Neilson, prominent New York attorney, counsel to numerous electrical and other open-price trade associations: "Notwithstanding the yearning of business men for advance advice and opinions from the Federal Trade Commission on operative policies of sellers and buyers under the act, that Commission, if it follows all past precedent, will not issue such advice and opinions. This for the very good reason that it could not undertake to examine in advance into the tens of thousands of situations all over the country. What it cannot do for all it cannot do for one. In the past it has said, in effect : 'There is the law. Do not violate it. If complaints are filed with us against you for violation then and then only we appear in the picture. The only exception to our rule against taking any initiative being that under Sec. 2 (a) we may in due time and on our own prompting examine into the reasonableness of quantity differentials in given situations.' "Although organizations of wholesalers aided in getting the law across, they may well find themselves at a disadvantage, for there now appears no sound reason against big-scale retailers buying on the same discounts enjoyed by wholesalers buying in the same quantities." 24 Radio Today