The sun., 1919-02-03

In interest not previously represented at
the meeting had been invited to attend
this particular meeting with the distinct
and express understanding that they
were not to participate in debate or
advance or discuss any views.
aside from the legal aspects OF the
situation It is evident that such prac-
ticcs are retarding the return to normal
conditions Of trade and commerce which
by a patriotic common consent were
cheerfully set aside for the duration Of
the war only"
Gregory's Letter to President.
The letter containing the opinion OF
the Attorney-General, a copy Of which
was sent to Mr.. Gould by @. Carroll
Todd, assistant to the Attorney Cen
eral, follows:
August 90. 1917.
Dear Mr.. PRESIDENT have consid-
cred the letter of Mr.. Hoover. United
States Food Administration. dated the
a3nd instant, transmitted through you.
in which he makes inquiry as to his
powers in certain respects under the
food control act approved August 10.
1917.
Among the enumerated purposes OF
this act are these: To assure an ade-
quate supply and equitable distribution
Of certain enumerated necessities and TO
establish and maintain governmental
control OF such necessities during the
war. (Section -
an carrying out these purposes the
President - authorized to enter into
any voluntary arrangement or agree
ments to create and use any agency or
agencies to cooperate with any
agency or person - (Section ~
Under this authority the President
has created the Office of the United
States Food Administrator.
The present inquiry in substance is
whether under this authority the Food
Administrator by direction Of the Presl-
dent may enter into any agreements
with persons in the various trades or
industries within the scope OF the act
which have the effect OF fixing prices
or OF pooling output, in short agree
ments which II made between private
traders would violate the Sherman anti
trust law.
Since no specific agreement or ar
rangement 10 before me can only speak
generally. I am OF the opinion that any
agreement made with producers or trad
ers by tho Government itself Through
the Food Administrator acting by d.
rection of the President). under au-
thority of Section . OF the act and hav-
ing reasonable relation to the objects
enumerated in Section 1, for example. TO
assure an adequate supply and equitable
distribution OF necessities and to es-
tablish and maintain Governmental con-
troll Of necessities during the war. would
not fall within the operation of the Sher.
man antitrust law even though the ef-
feet Of tho agreement or agreements
we're to fix a uniform price or to &C.
complish a pooling of output.
This because Governmental action
| with respect to prices or methods OF
distribution is obviously not within the
mischief at which the Sherman anti
| trust law was aimed. On the contrary
when natural laws of trade break dowI
| Governmental action In this regard ma,
! become essential to prevent the privat,
| control OF markets. For when natura
laws OF trade can no longer be depended
upon to regulate markets the only choic,
Is between artificial control imposed b!
private interests and artificial contro
imposed by public agencies In thes-
circumstances therefore such Govern
mental action 80 far from running coun
tel TO the purpose of the Sherman ant!
trust law Is directly in line with II.
II am equally clear that the Presi
dent has no power under the food con
troll act to authorize price fixing o.
pooling agreements between producers o.
traders themselves.
Sincerely yours,
IT w. GREGORY, Attoney-Ge