Evening star., 1922-05-10
HOOVER WOULD AID
TRADE COMBINES
Groups of Little Fellows
With Legitimate Aims Ap-
proved in Speech.
BY the Associated Press.

BY the Associated Press.
NEW YORK. Nay 10-New legisla-
tion to remove the uncertainties re-
garding trade association activities
was suggested by Secretary Hoover
in an address here today before the
National Manufacturers Association.
Without entering into legal for
mutation" Mr.. Hoover said. my sug-
gestion is that there should be a
minor extension to the Clayton act
to the effect that interstate trade as
sociations should be permitted to file
with some appropriate governmental
and the functions they propose to
carry on. hat upon approval of such
of these functions as>do not appar-
emily contravene the restraint OF
trade acts. they may proceed with
their operations.
IF, upon complaint. however. either
of individuals or the law officers of
the government. that these functions
90 restrain trade, then after a hear
ing and proof the right to continue
these particular functions shall be
suspended. and If continued they shall
be subject to prosecution. Also. if 1t
shall be proved that they have eN-
tended their activities beyond the
functions in their original proposals,
they shall be subject to prosecution
for restraint Of trade violations.
Would Aid Small Businesses.
Associations which do not wish
to secure this limited Interpretation
OF the law with Its assistance to
confidence should not be required to
do so: they. however. necessarily
assume themselves the job of inter-
preting the law, with the risks such
Interpretation entails. These ideas
would be inapplicable to consolida-
tions of capital, and / would not
propose that they should. All who
know the situation in these asso-
Citations will realize that in the main
their membership comprises smaller
business. Such measures will serve
to protect small business. for big
business takes care of ITSELF"
Much of the current discussion of
eiared. centers around minority
who are. or are thought to be. guilty
of the restraint of trade acts. But
these were of concern to him. he
said. only so far as the handling
of them has. created a great uncer-
a restraint of trade.
Uncertainty Hampers Trade.
This uncertainty" he continued.
now threatens to destroy many use
full services because most men will
not do a good act II they fear 1t
may be interpreted as being wrong.
1 believe the time has come when
we must have some assistance from
the law. but this does not imply the
alteration of the purpose of the re-
straint- of trade acts.
THE legitimate and advantageous
trade associations" he said. perform
in the interest of their members and
the community at large. The legiti-
mate trade associations possess four
important differences from capital
consultations:
First, their objectives are simply
to lessen production and distribution
costs or losses, to increase consump-
tion of their special commodities. to
facilitate even and steady supply, to
protect their. rights in relation to
other economic groups.
Second. the above purposes are
open to the common interest of a
whole trade, not a fraction of it.
Third. the purposes of these as
sociations do not include control of
price or profits. production or dis
Fourth, these associations may be
dissolved instantly without any dis
turbance of capital or production"
Business and trade conditions
ported by $4,000 manufacturers to
John E. Edgerton, president of the
association, today. show a stable,
sane. definite and continuing ad-
I'VE have not only turned the cor
ner," was Mr.. Edgerton's summary
of a survey Of the industry just COM
p1eted. I'VE are now leaving 1t very
far behind. Business is on the up
grade in practically all Of the basic
The survey was made by question
naires, answers to which were re-
ceived within the last twenty-four
hours, SO that It represents conditions
as of today.
Reports Are Optimistic.
The great majority Of our basic
Industries report that the present
trade is fair to good: some say it is
excellent; but only a small part say
II 10 DOOR," the report continued.
. There is q general tenor Of bright
prospects for the future, and a great
many OF the industries not only re-
port that they are employing more
mon than they were q year ago, but
that they are looking for a still fur
thor increase in their forces whom
the fall work sets in.
Tn the replies there Is an absolute
lack of an expression Of pessimism
A year ago we were not so Fortunate
" situated. Many of our industries
were still suffering greatly from the
war effects; some Of them thought
perhaps that they would never be
able to get back to normal.
Steel Trade Good.
In tho steel industries today the
survey shows conditions classed as
excellent among 6 per cent of our
membership. Is per cent as good, So
per cont as fair and II per cent as
poor. In the textile Industry 70 per
cent of them report conditions run
ming from fair to excellent and 80
per cent report poor conditions. In
the machine and tool industry we
find 80 per cent OF the replies report
ing conditions fair to excellent and
the remainder not SO encouraging.
I'm three industries where retrench-
ment Is ordinarily acutely felt-auto-
mobiles. jewelry and leather-the
showing 10 not by any means gloomy,
although not SO good as in other
lines. From the automobile trades
UOod renOrfa IN mar on~t IL 4a~r,