Every evening, Wilmington daily commercial., 1922-06-22
TRUST EXPERIMENTATION
BY Frederic j. Hnskin

Washington, June 22.--Jrwo new ex-
Designed TO establish DUET
meas facilities 20 take the place OF tne
old fashioned trust. condemned ny ths
sherman law MS monopolistic ana IN
restraint of trade, are being tried out
In the United States. The oideSt
aingle problem OF the AmeIcan Gov
ernrnent in the regulation on pus1-
ness baa been the suppression OF
malicious combinations. Perenniaiy
tho private business interests seek OUT
n new way Of combination as soon as
the government breaks up an oin one
Recently. government officials nave
adopted tho policy OF working in CO
operation with business In an enort
10 discover means Of cooperative ei-
fort which will not DO malicious.
Economists and some government
officials take tho position that there 's
such a thing as beneficent combina-
tion OF business interests. Inc grea'
problem In to make laws and regula-
tions which will produce the dement's
of concerted business and repel inc
evils OF monopoly.
The two latest experiments arc
first: Tho plan Of IN agreement, per
sonnl in nature, between a high Off
Ger of tho government and the IN
diyidual members OF an industra
group or trade, whereby joint actor
may be had along beneficent lines and
without general conspiracy; and. sec
ond. the agreement within a group II
business or industry to operate DO
tween two extremes, under the gen
eral suspices Of government super
vsion, but avoiding absolute defuit
agreement.
Tho outstanding purpose OF a.
trusts, InOnopolies and combination
Is 10 fix prices. The motive Is t
create a. business situation wherei
the predominant element controls IN
price the public must pay for a give
! product.
The old-fashioned maIevolent trus
, operated in this way: IL would accu
, nulate a strong fghting capita
With this backing It would reduc
, prices 80 low that independent ar
weaker competitors would be force
: out of business. Then when the he
was clear. It would increase prices
a point where huge profits wou
! accrue. This Ia the sort Of trust Il
8 Sherman law forbids.
The Heir OF the Trusts.
q Tho trade association Is declared
n government trust-busters TO BE- q
9 heir Of the oId-fashioned trusts.
II association in. for instance, q
- leather industry, would be made
Il ostensibiy competing 1ndepende
n leather manufacturers. They wou
, furnish to a general headquarters
= statement Of the prices they intend
Y TO charge. Each member would
" the trend being followed by the 9th
d members with the result that a taJ
n understanding would ensue and co
n certed action leading ultimately to
d monoporstic control Of the pric
: would follow. This system was brok
d I'D recently by the Supreme Court
le the United States which declared
W price-fixing trade association, eV
though composed OF independents NJ
+ In effect a monopoly IN restraint
A. trade.
of The first experiment IS being ma
J. by Secretary OF Commerce Hoover.
is believes that the emergency or
ID coal strike makes concerted act
to among coal operators and dealers
sirable and believes il is better
er the public to have prices fixed On
q. fair basis than to have wild comp'
,s. ton which would run prices OF C
lie UP 10 extortionate levels. Thereto
a. he has adopted the plan OF maxi
tn personally, an agreement with ei
individual that he viii charge no n
than q given maximum price for c
which Mr.. Hoover and his Fede
experts have determined s
price. In this case. the dealers do
deal with each other. through any {
of an association. By dealing II
Of vidually with Secretary Hoover i
an claimed the law is not violated,
ir the pubic has the benefit Of conceI
action 10 control the price on 4 r
i'll lively low level.
ne Should the plan work successfl
It is possible It may be employed
nd other industries, resulting in the c.
er ton OF q. new sort OF benedcent tr
an The second experiment IS being :
by the Federal Trade Commiss
nd Chairman Gaslzill of that body has
10 titled certain trade associations
while they may not agree, either
MD rectly or indirectly. 10 charge Ger
prices, there may be a general IN
Ia standing that prices will be char
between a named maximum an
wv named minimum.
,sd Both OF these experiments apl
ass on the surface TO De subject to
review. especially the latter, an
is rather doubtful. in the opinion
+he trust experts Of the Department
A | Justice. whether either plan viii st
ma The present session OF Cons
,cb opened new field for the soc,
-" benevolent trust by senacting
Ing which exempts Farmers co-Opers
.o1, organizations from prosecution u
~, the antitrust laws. This law "