The Washington herald., 1922-02-16
OFFERS PROGRAM
OF COOPERATION
TO TRADE BODIES
Secretary Hoover Gives
Guide Relative to Anti
Trust Laws.

Trade associations are guided as
to infringing upon antitrust laws
in documents made public yeSter-
day by Secretary Hoover.
What is in effect a statement of
the governments policy in the lignt
of the recent decision of the Su-
preme Court of the United States
in the hardwood lumber case is
contained in correspondence be-
tween Secretary Hoover and Al
torney General Daugherty.
Secretary Hoover in lengthy
letter to Mr.. Daugherty gives his
own views as to the manner in
which trade associations may con-
duct their affairs and cooperate
with the government in the dis
semination of statistics relative TO
production. consumption, and prices
without violation of law. Mr..
Hoover propounds specific ques-
tions to Mr.. Daugherty relative to
the legality of suggested activities
of the associations.
Qualities His Opinion.
The Attorney General in reply
10 Secretary Hoover Is cautious
about committing himself in the
form of a legal opinion. but de-
clares that he can see nothing III
legal in the activities in question,
with minor exceptions. providing
always that whatever is done Is not
used as a scheme or device to cur
tail production or enhance prices.
aDd does not have the effect of
| suppressing competition
r. o,,f
is impossible to deterpine in ad-
plan when put into actual opera
ton may be. Therefore, he says,
the expression of his views is only
| tentative and eff, In the actual
practice, it shall develop that COM
petition is suppressed or prices are
materially enhanced. this depart
ment must treat such a practice as
it treats any other one which is
violative of the antitrust act"
Agrees with Exceptions.
Secretary Hoover in reply to the
| Daugherty letter agrees with him
as to the exceptions which the At
| torney General makes and expresses
the opinion that their views are ~
complete accord.
| IHO VI d
mental policy toward trade asso-
Citations has been Under considera-
| tion for many months. Secretary
Hoover's plans for utilizing trade
associations in the gathering of
statistics have been held up pend
| ing the working out of a definite
program which will not run counter
to antitrust laws. The decision
! of the Supreme Court holding the
so-called open competition plan OF
| the hardwood lumber manufac-
turers to be illegal has threatened
to interfere with M Hoover's pro-
gram. The correspondence made
public yesterday, Ebwever. indi-
Gates that Secretary Hoover ex=
poets to be able to put into ef-
feet a broad program of co-opera-
tion with the trade associations
| substantially along the lines which
he originally planned.
For Uniform Accounting,
The specific activities embraced
in the. questions propounded by
| Secretary Hoover to Attorney Gen.
eral Daugherty include the fol-
lowing:
Establishment of a standard or
| Uniform system of cost accounting
through trade associations.
Advocacy by trade associations
of uniformity in the use of trade
phrases and trade names
Standardization of quality and
grades of product of members OF
trade associations.
Collection by trade associations
of credit information as to the
| financial responsibility of those
using the products of the industry.
Placing of insurance through the
agency of a trade association.
For Cooperative Advertising.
Cooperative advertising by a
trade association for the promotion
of trade of its members.
Promotion of welfare work by a
trade association in the plants of
its members
Representation by a trade asso-
citation of its members in matters
OF legislation. rate litigation and
railroad transportation questions.
Promotion Of closer relations be-
tween an industry and the Federal
and State governments through
trade associations.
Collection by a trade association
of statistics from each member
showing his volume of production,
his capacity to produce. the wages
paid, the consumption of his prod
uct in domestic or foreign trade,
and his distribution thereof, to-
gether with his stocks on hand.
Compiling OF stnfisfics.
Comkiling by the trade associa-
tfon OF such Information into a
consolidated statement which shows
the total volume of production of
ContirHed on Paoe Three.