Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-06-24

wv experiments assigned 10 eSLaDl1Sn DuSl-
ness facilities to take the place of the
old-faShioned trust, condemned by the Sher-
man law as monopoliStic and in restraint OF
trade, are being tried out in the United States.
The Oldest single problem of the American
government in the regulation of business has
been the suppression of malicious combina-
tons. Perennially, the private business inter-
eStS seek out new way Of combination as
soon as the Government breaks up an old one.
Recently, Government officials have adopted
the policy of working in cooperation with
business in an effort to discover means of
cooperative effort which will not be malicious.
Economists and some Government officials
take the position that there is such a thing as
beneficent combination of business interests.
The great problem is to make laws and regu-
lationS which will produce the benefits of con-
certed business and repel the evils Of monopoly.
The two latest experiments are, first: The
plan of an agreement, personal in nature be-
tween high officer of the Government and
the individual members of an industrial group
or trade, whereby joint action may be had
along beneficent lines and without general
conspiracy; and, second, the agreement within
group in business or industry to operate be-
tween two extremes, under the general aus
pieces of Government supervision, but avoiding
absolute definite agreement
The outstanding purpose of all trusts, mo-
nopolieS and combinations is to fix prices The
motive is to create business situation wherein
the predominant element controls the price
the public must pay for given product.
The old-faShioned malevolent trust operated
In this way: 1t would accumulate strong
fighting capital With this backing it would
reduce prices so low that independent and
weaker competitors would be forced out of
business. Then when the field was clear, it
would increase prices to a point where huge
profits would accrue. This is the sort of
trust the Sherman law forbidS
NJ The Heir of the Trusts
The trade association is declared by Gov
eminent trust-busterS to be the heir of the
old-fashioned trusts. An association in, for in
stance, the leather industry, would be made
up OF oStensibly competing independent leather
manufacturers. They would furnish to a gem
eral headquarters statement of the prices
they intended to charge. Each member would
see the trend being followed by the other
members with the result that tacit under
standing would enSue and concerted action
leading ultimately to monopolstie control of
the prices would follow. This system was
broken up recently by the Supreme Court of
the United States which declared price-fixing
trade association, even though composed of in
dependents was, in effect, monopoly in re-
Straint of trade.
The first experiment is being made by Sec
rotary of Commerce Hoover. He believes that
the emergency of the coal strike makes con-
certed action among coal operators and deal
ers desirable and believes it is better for the
public to have prices fixed on fair basis than
to have wild competition which would run
prices of coal up to extortionate levels. There
tore, ne has adopted the plan >of making per-
Sonally, an agreement with each individual that
ne will charge no more than a given maxi
mum price for coal which Mr.. Hoover and
his federal experts have determined is fair
price. In this case, the dealers do not deal
with each other, through any sort of an as
ISOLATION. BY dealing individually with Sec
rotary Hoover it is claimed the law is not vio-
lated, yet the public has the benefit of con-
certed action to control the price on a rela-
lively low level
Should the plan work successfully, it is pos
Sible it may be employed in other industries,
resulting in the creation of a new sort of
beneficent trust
The second experiment is being tried by the
Federal Trade Commission. Chairman Gaskill
of that body has notified certain trade asso-
Citations that while they may not agree, either
directly or indirectly, to charge certain prices
there may be general understanding that
mum and named minimum.
Both of these experiments appear on the sur
face to be subject to legal review, especially
the latter, and it is rather doubtful, in the
opinion of trust experts of the Department
Of Justice, whether either plan will stand.
i The present session of Congress opened
new field for the so-called benevolent trust