The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-06-02
MUST ALLOW
COMBINATION
OF EXPORTERS
Associations Necessary for
America To Compete Sue
cessfuly with Europe -
Price-fixing is Danger.
CONFLICTS WITH Law
BY MARK SULLIVAN


WASHINGTON, D. c., June 2-The
attention which the cabinet devoted
this week to trade associations is one
more angle of the eternal subject Of
foreign trade. For the purpose of stim.
ulating our exports. Trade associa-
tions are not merely desirable. but
practically inevitable At the same
time, from the point of view of do
mestic business. trade associations
are illegal.
If America is to compete success
fully in foreign trade, it must achieve
in the various lines of export the same
solida rity which foreign organizations
practice.
The familiar type of these foreign
organizations is what was known, be-
fore the war, as the German Cartel
Since the war the Cartel system is
not merely being continued by Ger
many, but has been initiated by other
countries.
Europe Encourages
For the purposes of trade in South
America, for example, several Euro
pean governments not merely toler-
ate the closest kind of trade associa-
ton, but encourage it and protect it.
Americans in the same line cannot
possibly meet this competition with
out having the same kind of trade
solidarity.
The various departments of the
new administration which are inter
ested in promoting foreign trade un-
derstand this. Congress understands
it also and has understood it for sew
eral years. In fact, few years ago
congress passed a law permitting a
degree of combination for the pur-
poses of foreign trade, which is lille
gal within the field of domestic trade
but what has now become apparent,
and what has brought the matter up
in the cabinet is the difficulty inher-
ent in having combination for the pur-
pose Of foreign trade, while at the
same time preventing the same sort
Of com bination for the purpose Of do
mestic trade.
Conflicts With Law.
II all the persons and corporations
engaged in a certain line of business
are brought together to make mutual
agreements in the way Of dividing
territory and avoiding the wastes Of
competition for the purposes of for
eign trade, the almost inevitable re-
suit is that the degree Of understand
ing arrived at for the purpose Of for
eign trade will be used for the purpose
of domestic trade. When this latter
happens there is a head-on collision
with the law
What the department of commerce
quite properly wants to encourage for
the sage of foreign trade runs directly
counter to the obligation laid by the
Jaw on the department of justice. 1t
is difficult matter. and it illustrates
the period of fluX and uncertainty we
are in as between individualism and
Collectiveism.
Even for the purpose Of domestic
'rade. few will deny that the gather
ing of information is useful. In the
lumber trade, for example, it is use
full to know from time to time what
stocks are on hand in various parts OF
the country. What the demand is in
the consuming centres, and what the
production is in the manufa cturing
centres This information is not only
valuable to the lumber trade, but
properly used, is valuable to the
community.
Avoids Wastes.
II is valuable to the buyer provided
il is made available to him my some
public agency. 1t tends towards con
servation and towards enabling the
country to be steadily and Adequately
supplied. while at the same time
avoiding wastes by keeping the mini
mum of goods in circulation.
But when the members of a trade
assemble this information they are
very apt to use it as the basis fol
uniformity in price. 1t is difficult tt
bring the members of a trade into
sufficiently close cooperation to ac
complish what is legitimate without
giving them the opportunity and the
temptation to practice a system O
price fixing which is illegitimate.
Copyright 1921 by the New Yorl
Evening Post. INV