Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-05-01
Judge McCall,s Decision

| ORGANIZATIONS in the industrial world
~ are said to be in state Of anxiety
! bordering upon panic over the decision OF
Federal Judge Mccall, in the District Court
at Memphis, In which he has enjoined the
manufacturers of hardwood lumber from
engaging in certain activities involving
price-fNing and market reports, held by the
court to be in violation of the Sherman anti
trust law. This decision has since been
seized upon by the Department Of Justice
, as the basis for n policy in proceeding
against all other organizations which may
have served its members in the same gen.
eral fashion.
The courts decision, 1t might be stated,
is based primarily upon the assumption
that the exchange Of market information"
among the members of this association was
for the fixed purpose of keeping the market
stabilized through control OF prices. This,
in effect. the court held, amounts to price
fixing OF price maintenance and as such Is
in violation OF the Sherman law and Is
punishable under the terms of that law.
III issuing its injunction. the court specii-
cally prohibited the following activities.
which have SO generally disturbed members
and officers of other organizations:
Making agreements among themselves by
means of organizations to eliminate COM
Petition; exchanging predictions among
themselves that high prices are to continue
indefinitely; distributing matter through
the association designed to maintain high
prices or to exchange high prices; discuss
ing among themselves high prices that have
been charged or which are to be charged.
These various acts. it was proven to the
satisfaction OF the court, were a part of
carefully operated system of market in
formation" They were practiced by the
hardwood manufacturers with the evident
purpose, II is declared, of fixing high prices
and Of preventing full and free play OF the
forces of competition and although the de-
PENDANTS insisted that their activities were
entirely innocent, from an antitrust stand
point, the court was unconv!nced
The lum6ermen. 333 OF whom have been
found guilty, are preparing to take their
case TO the Court Of Appeals and TO the
Supreme Court. IL need be, but IT is no
secret that they have been dealt severe
blow and their organization. as IL existed
before the Mccall decision was made public
will undergo some radical changes, what
ever may be the result OF the appeal
There are perhaps scores OF other indus
tries organized on the same general basis.
The coal industry, the canning Industry.
the soft-pine industry and others have their
organizations. the chief benefit of which is
the exchange OF information regarding mar
ket conditions. Some OF them insist that
they only give circulation 10 prices at which
sales already have been made not TO prices
For future sales. hut even this appears 10
come within the range OF the Mccall in
junction.
Ever since the government undertook
the prosecution o, the Southern Wholesale
Grocers' Association on much then same
grounds. the practices OF trade bodies in
furnishing their members with information
bearing upon prices have been under the
scrutiny OF the government and now that
clean-cut court decision has been rendered
on the subject the Department OF Justice
is armed for more sweeping prosecutions