Norwich bulletin., 1922-02-16
A Bulletin Want
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OPINION ON LEGAL LIMITS
 OF TRADE ASSOCIATION


 Washington. Feb. f5-Activities of trade associations do not contravene the provisions o6 the Sherman antitrust laws in- the view of Attorney General Daugherty, unless in actual practice they develop enhanced prsces, suppressed competition or c1rtai1ed production-
 The opinion of Mir Daugh.rty, express ed informally and tentatively. was made public tonight by Secretary Hoover, who had inquired of the attorney general as to the legal limits within which trade associations could property operate in connection with the commerce cepsrt- ment's plans for the publication Of trade statistics gathered by such organiza- tions.
 In hls letter, Mir. Hoover asked for an informal expression Of views. as to eleven specific forms Of trade zssoc;a- tion activity embracing a wide fad of operation. He asked whether. subject to various limitations, an association could provide a standard system of cost ac- counting for it's members if the costs afrtved at were not distributed; if uni- forrnity In the use of trade names and phrases could be provided; if standardiz- ation cf grades, quality. processes of production, etc. could he arranged fl information could be furnished as to fn- ancial responsibility; if insurance could | be handled; if co-operative advertising l could be engaged in: if legislative ques- l tons affecting a particular industry | could he handled. and if statistics show l Ing productions, distribution. wages. etc. could be collected from Its members and | complied for tile information ef inc sec retary of commerce.
 l Mr. Hoover inquired further if trade association could engage in any or all Of these activities provided there was no intent 10 hide some agreement to actual | ly restrain trade or otherwise violate the antitrust laws.
 With regard to tilefirst question Mir. 1 Daugherty declarsd there was no ao- 1 parent objection to a standard system Of 1 cost accounting, but associations should be warned to guard against uniform cost as to any item Of expenses. and suggest 1 ed the elimination of part of one oues- tien IS to. the proYriety of an associe- ton furnishing tradz marks for it's mwembers.
 T can see nodhing Illegal in the ex- ercise of the other activities mentioned. :. Mir. Daugherty said. provided always that whatever Is done is not ussd as 2 scheme CT device to curtail production ol enhance prices, and does not have tfe effect of SlppressinS competition. II i. Impossible to determine in advance jus- what the effect Of q plan When put ir. to actual operation may De. This is e= pec,ally true with reference to trade sz sociations, whos= members are vitaIlv in terested in advaB-lng or, as they term if 1 stabflizing prices and who through tht medium Of the associations are brourh into personal touch with each other. Therefore the expression Of the vier | r1-s N1r-
 with the exceptions stated, may be don, : lawfully is only tentative: and If in tS1, actual pesctice Of any of them 1t sha , develop that competition is suppresse, or prices are raterially enhanced. tn, , department must treat such practice a. any other one which Is vielative of tn 2 antitrust act-
 Discussing his advocacy of trade ssso 2 ciations for progressive economic or gantzation, Mir. Hoover told MT. DsnSh i, erty he was, nevertheless, aware that q,
 Impression existed with small minor, ty that individual prohibited acts rnigh Eee acccnplished Under the disguise of such an orga nization.
 s However" Mir. Hoover said. 'te r,a,, my position clear reyardinF the trad I associations the existence of which
 advocate, I desire to say that I Esv
 always. taken the view that no body q
 men could combine in the form of
 trade organization and do any act c thing forbidden by law if ther wer
 undertaken by them outside ot a trad
 organization.
 'Tne character Of trade o-rardzstio
 the existence of which should be p-e served, fs one that carries lawful nu,
 poses only in its articles Of assock8
 tion it's activities must be in harmon = with its declared purpose The article Of association. with their lawful decIa- ed purposes. must not be used as a mas : to hide unlawful purposes.