Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-12-20
HARDWOOD ASSOCIATION
METHODS ARE UNLAWFUL
Supreme Court Rules Anti.
81 trus, Law Violated
by Body.
GR TO X EEr UT PRICES
Tribunal Divides. @ TO 2. In Decision
ThAt Mnnufncturcrs' bureau IL
Conducted In Manner Restraining
Free Competition.
IBy Associated Prcsz.l

-, BS Associated PrcSS.1
WASHINGTON. Dec. 1s.--Thc open
competition plan Of the American
Hardwood manufacturers Associat ton
was declared by the Supreme Court
today restraint upon trade in viola
,ion of the Sherman antitrust law.
Department OF Justice officials.
commenting upon the decision. said
II -@onld form the basis for the gov
associations mainta( med by various
industries TO exchange price and
other trade information. Activities
of these associations have been under
observation by tho department. for
some time, but definite Communications
OF policy, it has been stated by At
tortey General Daurherty. awaited
today's decision in the nations high
est court.
Court Is Divided.
In rendering its decision. the court
divided six and three, Justices Nc
henna, Holmes and Brandcis dissent
ing 1t sustained the United States
District Court for Western Tennessee
which in April, 1920, granted an in
junction perpctually restraining the
association from entering into fur
Their agreements under the plan for
bidding the further distribution of
statistical information under tho
plan. and directing the abandonment
of al efforts whatsoever having the
purpose or tendency to enhance or
maintain prices"
The opinion OF the cour, was de-
livered by Justice Clark, who de-
scribcd the organization of the as
sociation's statistical bureau. cx-
planning in detail its methods for
hoth obtaining and disseminating in
formation concerning the trade and
asserting II was a clear combination
10 restrict production and to increase
prices. Concerted action among Tho
members was obtained, he stated. NOT
only by the distribution OF reports
ISSUED under the open connection
plan; but By frequent meetings and
missionaries.
Result in Concerted Action.
me meetings OF the members re-
snlteu in concerted action, Justice
Clarke stated. to raise prices regard
less OF conditions, and the pIan was
termed by him misleading ana mis-
homer" and IAN old evil in a new
dress and new name" He added
that instead OF a plan to promote
open competition It operated to re-
strict competition.
t-was futile, he said, to argue that
the- Plan was merely to furnish in
formation which could not he other.
wise ob,a med. The secretary OF tho
association. through an expert sta
tscian. he asserted. utilized rcplied
to 1quest!onaires and other informa-
ZION Furnished by the members NJ
the association as the basis for bull
ietns- ana advice. These replies. he
said: also were utilized in predicting
advances in prices. by
Withholding OF products from the
market. awaiting higher prices.
Justice Holmes Dissent.
Justice Holmes in dissenting.
stated that the method OF the assoc
citation could not be objected TO in
this country OF free speech. as
90 mhin alton ia restraint of trade.
nat while IL was "A combination
among sellers Il was not unlawful:
hat Its meeting and Information
through It's bureau. was
open 10 the public; that coubina.
n.-hefore it can be termed unlaw.
.ul Smust engage in an unreasonable
restraint of trade and overreach
normal market conditions.a In ,Ae
practices OF the association Ike. saw
nothing that was different from. tho
results produced. by the government
in dtftrihution Of market rcportsand
other Information for producers. ex-
cepI-that the association sought to
reach members lin the back woods"
to Whom was not available much OF