Pueblo chieftain., 1921-06-19
TRADE BODIES IN BALANCE
OF SCALES AT WASHINGTON
Department Of Commerce Realizes That, In Order To
Overcome Foreign Competition, Associations
Are Necessary
Of dissatisfaction With the schedule

OF dissatisfaction With the schedules
of that bill as they became known.
In addition to that there was an in
crease of the restlessness which a ma
jority of both the house and senate has
shown about the lack of progress
towards conference for disarmament.
and towards the continents which our
government is making toward a large
armament program and the continued
heavy taxation 1t involves.
While these things occupied Con-
sress, the chief interest OF the ad-
ministration, II one subject can be
picked out from among several and
called chief, has been finding a way to
treat trade associa tons. The two de-
partments OF the cabinet to which this
subject is of most interest arc the
Commerce department and the Attor-
ney Generals department The Com
merce department wants to retain and
use these associations in so far as they
are legal in their constitution and
within public approval in the nature OF
their activities The Commerce de-
partment wants to use them because
it is only thru them that any practi-
cal way can be found of extending our
trade In foreign countries in competi-
tion with other nations which use SIM
liar associations freely and give them
official sanction. On the other hand
the Attorney General finds that a GER
tain number of these associa tions are
in violation Of law, and has been active
in taking steps to suppress such OF
them as arc clearly not within tho law
There Ia no antAgonism between the
two departments. Attorney General
DauTbcrty and Secretary Hoover. as
we'll as tho rest of the administration.
are in entire harmony. Tho Attorney
Generals point of view is that asso-
ciations which are following practices
Of doubtful legality must cease to do
so. and that those Of them which arc
wiifully or obstinatcly refusing TO stay
within the law shall be prosecuted.
Tho whole subject is ono of the most
difficult the administration has to deal
with. There are Como 5000 of these
trade associations The number would
run above 10000, N IT included local
associations Of farmers and laborers
These 5000 associations Of manufas-
turers and dealers arc the ones that
are under consideration. Tho Law per-
mits manufacturers and dealers to
combine for practically every subject
pt the f,xtng OF prices. whcrs as
ISOLATION, exist for the purpose of ,x-
ing prices. or where tho fixing Of prices
Ia AN incident of their present actfvt-
tee. they are in opposition to the law
Wherever this Is the case these as
sneiaticns are under pressure both
from the Attorney Generals ONCE and
from local state prosccutivc ofbcerr.
Great dimculty lies in draw wing the
line. undoubtedly. when a number Of
dealers and manufacturers arc COOP
Grating cicseiy for legitimate purposes
there il An opportunity and a temp
tatloo. consciously or unconsciously.
to adopt prices which arc morc nearly
uniform than would he tho case II
thcrc was no cooperation At all. Tho
point Of visw Of the Commerc, de-
portment is that II is imperative for
America To extend its trade abroad
The minute v~ try to extend our trade
abroad We cru,~ in competition with
the businessman OF various European
nations. Thcse European governments
do not have our pretudices against
trade combinations at all: they be-
li~vo In trade combinations. they en-
courage them. and they Eive ofi1cia'
sanction to them. In many cases, In
decd. the trade associations Of foreign
countries have not grown up srontan-
eousiy. but have actually h~en organ
izcd by agents Of tho government with
tho purpose of Ercatcr effectiveness In
extending trade abroad.
From the point Of view Of Commerce
and from every point Of
view Of common sense. any Individual
American bu-ines man. attempting 10
compete in South America let u> say.
n arsirst a sclidly organized trade an
-ociation from Great Britain or France
or Germany. Is beaten from the start.
n wo arc TO compete successfully with
these foreign countries, ve must adopt
tho economic, and other advantages
Inherent in their device OF compact
trade arrocisttons For this reason.
tho department Of Commerce wants to
take .he large number OF legally organ
izei and cthically disposed trade as
.ociationa that exist in America and
wants to help them and work thru
them.
tn. theory Of the administration is to
presrrve tho beneficial activities Of
these organizations, whiIe at the same