The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-06-19
ny MARK SULLIVAN.

chief subjects Of Interest were the
progress which the Ways and
Means Committee has been making
on the tariff bill and the registering
OF a rather formidable amount Of
dissatisfaction with the schedules
of that bill as they became known.
In addition to that there was an
increase Of the restlessness which
majority of both the House and
Senate has shown about lack Of
progress toward q conference for
disarmament, and toward the COM
mitments which our government 10
making toward a large armament
program and the continued heavy
taxation IL involves.
Cessiders Trade Interests
While these things occupied Con-
gress, the chief interest of the sd-
ministration-if one subject can be
picked out from among several and
called chief-has been finding a way
to treat trade associations. The
two departments Of the Cabinet to
which this subject Is Of most inter-
est are the Commerce Department.
and the Attorney Generals depart
ment. The Commerce Department
wants to retain and use these asso-
Citations 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
IL Is only through them that any
practical way can be found Of ex-
tending our trade in foreign coun-
tries in competition with other ma
lions which use similar associations
freely and give them official sane
ton.
On the other hand. the Attorney
General finds that a certain number
of these associations are in viola
tion Of law, and has been active in
taking steps 10 suppress such of
them as are clearly not within the
law.
Departments In Harmony.
There is no antagonism between
the two departments. Attorney Cen
sral Daugherty and Secretary
Hoover, as well as the rest OF the
administration, are in entire
harmony The Attorney Generals
point of view is that associations
which are following practices OF
doubtful legality must cease to do
SO, and that those of them which
are wilfully or obstinately refusing
to stay within the law shall be
prosecuted.
The whole subject is one Of the
most difficult the administration has
to deal with. There are some 5000
of these trade associations. The
number would run above 100000 IL
il included local associations of
farmers and laborers. These 5000
associations OF manufacturers and
dealers are the ones that are under
consideration. The law permits
manufacturers and dealers 20 COM
bine for practically every subject
except the fixing OF prices. Where
associations exist for the purpose
of fixing prices, or where the fixing
of prices is an incident Of their
present activities, they are in oppo-
sition to the law.
Difficult to Draw Line.
Wherever this is the case these
associations are under pressure both
from the Attorney Generals office
and from local State prosecuting Of
ficers. Great difficulty lies in draw
ing lnt llnt- " hNh a
number Of dealers and manufactur-
are are cooperating closely for
legitimate purposes there is an op-
portunity and a temptation. con-
sciously or unconsciously. to adopt
prices which are more nearly uni
form than would be the case IL
there was no cooperation at all.
The point OF view Of the Com
perative for America to extend its
trade abroad. The minute we try to
extend our trade abroad we come in
competition with the business men
of various European nations. These
European governments do not have
our prejudices against trade combi-
nations at all. They believe in trade
combinations. they encoura ge them.
and they give official sanction 20
them. In many cases. indeed. the
trade associations Of foreign coun-
tries have not grown up spon-
taneously. but have actually been
organized by agents of the govern
ment with the purpose of greater
effectiveness in extending trade
abroad.
Hnnpered In Competition.
From the point Of view Of the
Commerce Department. and from
every point of view of common
sense. an individual American bust
ness man, attempting to compete in
South America, let US say, against
a solidly organized trade associa-
tion from Great Britain or France
or Germany, is beaten from the
start. II we are to compete sue
cessfully with these foreign coun-
tries, we must adopt the economies
and other advantages inherent in
their device OF compact trade asso-
Citations. For this reason, the De-
partment OF Commerce wants to
take the large number OF legally
organised and ethically disposed
trade associations that exist in
America, and wants to help them
and work through them.
The public is prone TO think Of
only one purpose in connection with
trade associations. That purpose is
fixing of prices, which is against
our law and against the point OF
view of our people. But the fact is
that trade associations can have
and do have many activities bene-
fcial to the public aside from any
fixing OF prices. For example, one
OF the best known and most power
full associations Is composed Of the
automobile manufacturers.
would Help Auto.
Just now, among other activities,
for example. the Automobile Assoc
citation Is taking up the question of
selecting certain strategicaIly To-
Gated points in foreign countries
where the association can maintain
a continuous supply Of parts for all
makes Of American automobiles.
That this will facilitate the mar