Evening star., 1921-06-01
FIRM STAND TAKEN
ON NANTtTRUSTLAW
Attorney General to Prose-
cute Associations Engaged
in "0pen Price" Practices.

Action against trade associations
| which engage in so-called "open
price" practices will be instituted by
the Department Of J1stice. according
to an announcement Of Attorney Cen
eral Daugherty. Investigations OF
many of these associations have been
conducted. and. while the Attorney
General said that 1t was not the pol
| those which are thought to be violat-
ing the law will have proceedings
| brought against them in the courts.
Practices and plans of associations
| which gather trade Information are
! being inquired into for possible vio-
! lations of the federal statutes. Attorney
| General Daugherty later explained.
There are about 400 such associa-
| tions in the country. he added.
The Hardwood Lumber case is pend
ing In the Supreme Court and the
Yellow Pine case in st. Louis as a
result of Proceedings begun under
| the Wilson administration, the Attor-
| ney General said, adding that deci-
sions would be reached soon as to
| whether action would be begun
| against another organization for vio-
latton OF the antitrust laws.
To Give Fair Warning.
The policy of the department. he as
| serted. was to call in the officers of an
association which investigation dis
| closed TO nave violated the antitrust
| laws and make an effort to persuade
| them to discontinue their practices
| There was no intention on the par,
OF the government to attack business
| associations, he declared, but there
was considerable doubt, due to con.
nicting court decisions. as to how fal
business men could go in their or
ganizations without violating the
laws
The object of the movement on the
part of the Department of Justice, Mr
Daugherty stated. was to have the
law definitely determined SO that both
the government and the business men
would know where they stood.
Associations collecting and dissent
| mating trade information co-operateG
| with the government during the wal
as a necessity, the Attorney Genera
said. but now the data was distrib.
| uted among the members. but no,
given the government. and it was tc
be determined whether the acquiring
| and use of this information m ight be
| territories to concerns IN violation OF
| the law.
Likened to Spider Web.
Formation of the association he
| likened in some cases to a spider
! web. with no particular part con.
| trary to the law but with the whole
put together and focusing down on
the spider in the center. resulting
in price fixing. In some instances
he said. the distribution of trade in
formation within an industry made
for uniformity of prices, which stified
competition and, while there might
| not be definite agreements, "a wink
of the eye and a nod of the head
we're sufficient to accomplish the re-
suits desired.
Mr.. Daugherty said he had dis
| cussed the matter with Secretary
! Hoover. who is holding a series OF
| conferences with representatives OF
leading industries in an effort to OBJ
| tain their cooperation in the pub
| lication Of comprehensive trade sta
! tistics by the government, and that
information and advice on the sub
ject had been exchanged.
In connection with Mr.. Hpover'l
proposal for the formation of COM
binations of exporters to compete in
foreign trade with their rivals
| abroad, Mr.. Daugherty said he
thought such organizations could be
reconcfled with the antitrust laws
as long az there was nothing effect
ed which would cause the fixing OF
prices in this country.