The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-06-18
PRICE FIXING
REGULATION
is DIFFICULT
Attorney General Suppresses
Trade Association Violating
Law-Experiences Trouble
in Drawing Line of Legality.
TO PROTECT BUYERS
BY MARK SULLIVAN

Within congress this week the chief
subjects of interest were the progress
which the ways and means committee
has been making on the tariff bill and
the registering OF rather formidable
amount 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
majority Of both the house and senate
has shown about the lack of progress
towards a conference for disarmament
and towards the commitments which
our government is making toward a
large armament program and the con-
tinued heavy taxation it involves.
While these things occupied con-
gress, the chief interest Of the admin
istration, if one subject can be picked
cut from among several and called
chief, has been finding a way to treat
trade associations.
To Retain Benefits.
The two departments of the cabinet
to which this subject is of most inter
est are the commerce department
wants to retain and use these associa-
tions in so far as they are legal in
their constitution and within public
approval in the nature of their
activities.
The commerce department wants to
use them because il is only through
them that any practical way can be
found of extending our trade in for
eign countries in competition with
other nations which use similar asso-
Citations freely and give them official
sanction.
Violate aw
On the other hand, the attorney gen
eral firds that a certain number of
these associations are in violation of
law, and has been active in taking
steps TO suppress such of them as are
clearly not within the law, there is
no antagonism between the two de-
partments.
Attorney General Daugherty and
Secretary Hoover as we'll as the rest
of the administration are in entire har-
mony, the attorney generals point of
view is that associations which are
following practices of doubtful legality
mus. cease to do so. and that those
Of them which are wilfully or obstin-
atelv refusing to stay within the law
shall be prosecuted.
Difficult Subject.
The whole subject is one of the
10 deal with. there are some 5000 OF
these trade associations, the number
would run above 100, 900, it is 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 to combine 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 opposi-
tion 10 the law.
Wherever this is the case these as
sociations are under pressure both
from the attorney generals office and
from local state prosecutive officers.
Great difficulty lies in drawing the
line. Undoubtedly, when a number OF
dealers and manufacturers are cooper.
ating closely for legitimate purpose
there is an opportunity and tempta.
tion, consciously or unconsciously. to
adopt prices which are more nearly
uniform than would be the case if
there was no cooperation at all.
Compete With Europe.
The point of view of the commerce
department is that it is imperative fol
America to extend it's 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
combinations at all; they believe in
trade combinations; they encourage
them. and they give official sanction
10 them. In many cases indeed the
trade associations of foreign countries
have not grown up spontaneously, bu
have actually been organized by the
agents of the government with tht
purpose of greater effectiveness in eX
tending trade abroad.
Beaten at Start.
From the point of view of commerce
department. and from every point o
view of common sense, any individua
American business man. attempting Il
compete in South America, let of say
against a solidly organized trade asso
citation from Great Britain or Franc
or Germany is beaten from the start
II we are to compete successful.
with these foreign countries, we mus
adopt the economies and other advant
ages inherent in their device of com
past trade associations. For this rea
son, the department of commerc
wants to take the large number o
legally organized and ethically dispo:
ed trade associations that exist il
America and wants to help them an
work through them.
The theory of the administration
to preserve the beneficial activities @
these orga nizations, while at the sam
time preventing al agreement @
prices to the consumer which is illt
gal and contrary 10 American ideas.
Advance Theory
Some members of the governmen
would go so far as to permit thes
trade associations to include in thel
activities the collection of statistic
about prices in widely separated con
munities. statistics about local deman
here and there, and about stocks o
hand at various points. That the co
lection of such statistics and their di:
Continued on Page Twelve)