A short time after this signal victory of Macy's, certain large
manufacturers of patented articles, who for a time had sustained in the
lower courts their claim to a fixed retail price standard, sought
definitely to control Macy retail prices upon their products. Macy's,
however, defied them, and the Victor Talking Machine Company, one of the
leading adherents of price maintenance, brought an action in the United
States courts to compel Macy's adherence to the rules for resale at a
certain price. Again there was a royal battle and again Macy's triumphed
signally, for on final appeal, the United States Supreme Court again
decided in favor of the store in Herald Square, on every one of its
contentions. Macy's then retaliated and brought suit against the Victor
Company, under the Sherman Law. In a bitterly contested action, which
culminated in one of the longest trials before a jury on
record--consuming more than ten weeks--Macy's recovered a judgment of
$150,000, and a counsel fee of $35,000; after which no paths apparently
were left open to the manufacturers who sought to maintain the retail
prices that suited them best. Court decisions seemingly blocked all
possible pathways.
One path did remain, however--legislation. Effort was made to pass a
measure down at Washington to permit and sustain retail price
maintenance, which in reality meant the emasculation of the Supreme
Court's decisions. When that measure came to a hearing before the
Interstate Commerce Committee of the House one of the Macy partners,
accompanied by Mr. Wise, the store's counsel, and Mr. E. A. Filene, the
well-known Boston merchant, came before it in opposition. Up almost to
that hour, Macy's had gone it alone. Now the attention of the country
was focussed upon its fight and the National Retail Dry Goods
Association came in with both its sympathy and its active
co-operation--hence the appearance of Mr. Filene, who made a most
excellent argument in support of the Macy contention.
It was shown definitely to the members of this House committee that
many, if not all, branded and patented articles took a retail profit of
from fifty to seventy-five per cent. The member of the Macy firm took a
watch nationally advertised at $2.50 and duplicated it with a watch
which his store sold at sixty-five cents, going so far as to take the
two watches apart so as to show conclusively that the one was quite as
good as the other. Certain other commodities went under similarly
critical analyses. When the hearing was completed, the committee laughed
the bill out of court. Since then the question of price maintenance by
the original producer has been permitted to drop. Macy's had won its
hard-fought fight; won it cleanly and honestly. By performance it had
made good its statements that it proposed wherever it was humanly
possible to undersell its competitors. That was no idle phrase.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account