Added Cost to Consumers 
The Commission's recommendations said in part: — 
"These bribes take the form of commissions for alleged services, of 
money and gratuities and entertainments of various sorts, and of 
loans — all intended to influence such employes in the choice of mate- 
rials. It is evident that this inexcusable added cost is finally passed 
on to the consumers. 
"The practice is one which has been condemned alike by business 
men, legislatures and courts, including among the business men 
those who having finally resorted to it in self-defense in competing 
with less scrupulous rivals or in selling to concerns whose employers 
have extorted commissions under threats to destroy or disapprove 
goods submitted to them for test. 
"Corrupt employees having the power to spoil and dis-approve 
materials, have been able to bid one salesman against another until 
in many cases they have extorted secret commissions, so called, as 
large as 20 per cent of the value of the goods sold. 
"Fourteen States have statutes striking at the practice and 
yet it tends to grow. When competition crosses State Unes, State 
statutes with respect to trade practices are not actively enforced." 
Gifts to Members of Families 
"The commission feels that the stamping out of bribery is one 
necessary step to the preservation of free, open, and fair competition, 
and to that end respectfully urges that such legislation should prohibit 
not only the giving and offering, but the acceptance and solicitation 
of any gift or other consideration by an employe as an inducement 
or reward for doing any act in relation to his employer's affairs or 
business, or for showing or forbearing to show favor or disfavor to 
any person in relation to his principal's or employer's affairs or 
business. 
" In order to prevent a resort to a common method of corruption, 
it is recommended that the law should also prohibit the giving of any 
such gifts or other consideration to members of the agent's or 
employe's family, or to any other person for his use or benefit, direct 
or indirect." 
Rose Standish Nichols, 
Chairman of Committee on Trade Relations. 
July 26, 1918. 
