The Publishers' Weekly

FOUNDED BY F. LEYPOLDT

July 19, 1919

"I hold every man a debtor to his profession, from the which, as men of course do seek to receive countenance and profit, so ought they of duty to endeavor themselves, by way of amends, to be a help and ornament thereunto."—Bacon.

Book-trade Application of Colgate Decision

N editorial comment on the recent Supreme Court decision in the Colgate price case the New York Times says:

"The recent decision of the Supreme Court in the Colgate case continues to be discussed by manufacturers and retail merchants.

"The decision probably foreshadows the character of the court's decision in several pending cases in which manufacturers are accused of violating the Federal Trade Commission act by conduct like that of the Colgate company-withholding goods from dealers who did not sell at suggested or specified prices. Orders recently given to certain manufacturers by the Commission direct them to discontinue attempts to maintain resale prices, and forbid them to 'impose any penalties whatever on purchasers for failure to adhere to or observe such prices.' Refusal to sell again to such retailers is, of course, a penalty, but the Supreme Court says it may be lawfully exacted. In most cases the resale prices suggested or required by manufacturers of specialties are reasonable. The right to insist upon them appears now to have been established, for the court of last resort says the producer 'may exercise his own discretion as to parties with whom he will deal,' and 'may announce in advance the circumstances under which he will refuse to sell.'"

In no sphere of business are these facts more clear; first, that the resale prices announced by publishers are reasonable; second, that the publisher now has undoubted right to cut off his account with such retailers as continue to cut the price.

Publishers have always realized the importance of maintained prices to the health of the book-trade. They worked consistently for this for many years but because they made their final stand against price-cutting as a group organization they ran against the constraints

of our anti-trust legislation and paid a heavy penalty.

The present decision clears the air in many ways and sustains the opinion expressed by many of the book-trade at the time of the Macy vs. American Publishers' Association litigation, i. e.: individual discontinuance of business with the price-cutter is quite possible, and entirely legal.

The great difficulty of stopping the booktrade price-cutting lies, however, in the natural dread of martyrdom in the mind of the publisher. The price-cutter is a large outlet, he pays the publisher as much for the books as any one else; if a publisher closes the account, the price-cutter buys what he has to have of that line thru the jobber, but cuts the total sales to the bone; some one else gets the business and no compensation advantage springs up elsewhere. Colgate must face that same situation, except he finds his compensation in sales elsewhere. Presumably, the better class of drug stores begin to take more interest in the Colgate line when they find it is not made the cut-price feature of their neighbor.

It might be found that the publisher who fought the good fight for fair trade might find equal compensations. The retail booksellers thru the American Booksellers' Association have shown continuous interest in price maintenance. For the last two years they have been contributing $50 a month to the working funds of the American Fair Trade League. Many find their efforts to expand balked by department store and mail order price-cutters, who, tho now very few in number, have trade that ramifies in many directions. It seems very certain such action by the publishers would find wide recognition.

It cannot be doubted that the public will gain as much by healthy conditions in book distribution as by better distribution of tooth paste.

But, however much may be done within the possibilities indicated by this decision, the book-trade will probably agree with the recommendations of the Federal Trade Commission, now presented to Congress; that is, that while the Colgate decision gives relief for manufacturers doing business directly with the retail trade, it leaves the jobber in a bad situation and does not answer the whole need.

The recommendations for legislation are based on these sound principles:

(1) That producers of identified goods

should be protected in their intangible property right or goodwill, created thru years of fair dealing and of sustained quality of merchandise;

(2) That the unlimited power both to fix and to enforce and maintain resale prices may not be made lawful with safety; and

(3) That unrestrained price-cutting is not in the public interest, and tends, in the long run, to impair, if not to destroy, the production and distribution of articles desirable to the public.

The United States is ready, after these years of discussion, to grant that the public is better off with a maintained price under government supervising authority. Congress must be pressed forward to decision in that direction, and the publishers and retailers with other far-sighted manufacturers and merchants should stand behind the effort.

Children's Book Week

The plan proposed at the Booksellers' Convention for a Children's Book Week this fall is now taking shape rapidly and is arousing universal support. A preliminary committee for developing the plan has been appointed by the American Booksellers' Association, to consist of: F. G. Melcher, secretary of the American Booksellers' Association, chairman; F. B. Stokes, F. A. Stokes Co., secretary; F. L. Reed, Grosset & Dunlap; E. W. Mumford, Penn Publishing Co.; Mrs. Louise M. Pleasanton, Brentano's; Franklin K. Mathiews, Boy Scouts of America, 200 Fifth Ave.; F. A. Clinch, D. Appleton & Co.; Maxwell Aley, Harper & Bros.; C. R. Crowell, Doubleday, Page & Co.; Miss Bessie Graham, 600 Lexington Ave.; Frank Bruce, Houghton Mifflin Co.: R. S. Lynd, Scribner's.

This committee, selected largely from New York, in order to get rapid action, plans to enlarge in the form of sub-committees and to draw into its plans ideas from all quar

ters.

The watchword of the movement will be "Children's Book Week-More Books in the Home!" and co-operation is wished from all who care to see a wider selection of reading matter made available in the average American household for developing our children. While the booksellers are taking the initiative, it has from the beginning the support of the Boy Scouts of America, Mr. Mathiews, the Chief Boy Scout librarian, being one of those largely responsible for the movement. Public libraries have shown an equal interest in urging parents to supply more books for their children, and the Children's Section at the recent convention of the American Library Association passed a resolution expressing interest and offering support.

The plan will involve the forming of local

committees to forward the movement, and these will be expected to secure co-operation from churches, Y. M. C. A.'s and other bodies, and publicity will be looked for not only in book-trade papers, but in periodicals of various kinds. The publishers, not thru formal organization, but thru their natural and continual interest in the circulation of more children's books, are offering full co-operation and the benefit of their experience and trained minds in the publicity campaign. A sub-committee is already at work on plans for a handsome poster which will help visualize the campaign, and other committees gathering suggestions on store selling methods, plans for retail advertising, and the possibility of authors' lectures in various centers as a means of interesting the parent.

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The plan seems to offer an unusual chance for co-operation in an unusual year, and a concentrating on this work in the first part of November, should bring results extended over a long period.

The successful bookseller should not be at the desk all the time. There are things to learn around the city. The bookseller should be a citizen as well as merchant, should know what people are thinking about now as well as what they used to think about.

As Seen from St. Martin's Street

The always interesting trade letter of Mr. Grant Richards in the London Times contains sprightly comment on the American visitors under date of July 3rd:

"Selling books to American publishers is the devil's own job. One talks and quotes prices, one talks and sees if one cannot quote lower prices, and one writes letters and talks again -and then one sells 500 copies of this and the American rights of that at an advance against royalties of, say, a couple of hundred dollars [it is as well to get your advances in dollars in these days!]. One's enthusiasm is sometimes wasted; one works very hard, oh! very hard; they are tough propositions these Americans, very clever at driving a bargain. But all the same it is not a disagreeable job. The reverse indeed. The spring and early summer months when American publishers are thick on the ground, when the woods, so to speak, are full of them, is the pleasant time of the year. Friendships are renewed; there are so many things to discuss, so much interesting gossip-for instance, Alfred Harcourt is setting up for himself-so many exciting comparisons to make. . . . When the last of our friends has returned to New York, or Boston, or Philadelphia one feels a little cold; London becomes less amusing. less sunny. One has to settle down to a duller kind of work. Personally I have no complaint to make of the receptiveness of my visitors this year. They have encouraged in the most practical way my belief in a dozen books I am to publish, and one of them has even bought my own unwritten novel on such terms that I have now actually to write it.