The New York herald., 1921-06-11

that they will take such action at
their peril
l have a high personal regard for
Secretary Hoover who. by the way. Is
not a lawyer. If he made the ILL
advised statement attributed to him
on the subject of overproduction II
is because he did not consult law
yer. The circular of the I'd inst is
sued by the Chamber OF Commerce OF
the United States furnishes no JUS
tification for anything contained In
your letter.
However all this may be. the Aims
worth Exchanges are from legal
standpoint of a most Objectionable
character. Their so-called Elk
change of Information" among the
members was a mere cover for price
regulation. The law has not been
changed since they openly agreed 10
discontinue their Objectionable prac-
tices Nothing has happened that
will give countenance to the resump-
tion of those practices. III. as you as
sert; the discontinuance OF the prac-
tices OF the cooperated industries IN
the Ainsworth Exchanges has had no
effect on prices or distribution OF
products in New York one way or
another 1t is either because there has
not yet been time TO demonstrate the
effect of these changes OF policy or
because the members OF the e%-
changes are not in good faith per-
forming their promises made to the
committee.
Until the laws are altered so as 10
provide for governmental supervision
of these masquerading price fixins
1Ra
is set up in connection with such laws
by which their acts can be scruti-
nized so as to prevent them from
Fleeing the public. every effort will
be made 10 punish the offenders
especially those who deliberately Of
fend in disregard of their promises OF
reform. | am hopeful that as result
of our labors some such legislation
will be secured. but meantime L
strongly advise you not to take too
much encouragement from the dis
jointed and i'll considered observa-
tions of public officials who are not
looking at the subject from the point
of view which the law regards II.
The more ! study this subject the
more firmly l become convinced day
by day that these trade associations
are the biggest factors in the high
cost OF living and that until they are
either destroyed or regulated by law
the people will get no substantial
relief.
The interview with Attorney-General
referred to by Mr.. Mckercher
vas understood to have been one In
which Mr.. Daugherty pointed out that
many trade combinations complained OF
we're careful to keep just within the law
40 erf. hat, HXlnR
les under some other characterization.
some Of the laws, 1t was suggested.
night have TO be made more stringent
before successful prosecutions on any
arge scale could be undertaken.
Seeking Federal Prosecutions.
Mr.. Untermyer will have a conference
o-day with United States District At
orney William Hayward to work out a
,lan for Federal prosecution Of the ce-
nent and other building material COM
,inations engaged in interstate COM
nerce against whom indictments have
cen or are expected to be found. Mr.
rntermyer believes that little more than
he evidence adduced before the Lock-
rood committee will be necessary for
he Federal Grand Jury to find indict-
,ents in the cases of twenty or more
ON DlnatlOnS NnOse dCblNiticS ihNS DSSN
Already Mr.. Untermyer is in receipt
Z number of letters from insurance
heretofore barred from doing
usiness in New York by the rules OF
he New York Fire Insurance Exchange.
'hese companies want to know how
oon ii will be before they will be per-
nitted TO hang out their signs. since the
has agreed TO admit all COM
anies licensed by the State Insurance
without discrimination.
This. MIR. Untermyer says. already Is
,aving it's effect upon rates for New
York city risks. downward revision OF
which already Is under way.
kilograms were sent by Mr.. Inter
myer yesterday in behalf of the COM
nittee to the District Attorney of Erie
and the United states Attorney
II Buffalo requesting assurances of ac-
i've cooperation by the local authorities
when the committee goes into action
here next week. The Buffalo trip Is
Undertaken at the urgent demand of the
,ity authorities and the Buffalo delega-
ion in the Legislature. Conditions In
ne building trades there are said to be
ven worse than they have been shown
o be in New York, with the "or1ck
rust" one of the worst offenders. The
demands OF the public authorities have
,een supplemented by urgent requests
Ilso from civic organizations that want
housecleaning and also by the Buffalo
2na III ~ E,ducaffou