Arizona republican., 1922-02-16
ATTORNEY GENERAL RULES
TRADE ASSOCIATION COST
SYSTEMS ARE NOT ILLEGAL
IRspubIiean A. p. Leased wirel

WASHINGTON, Feb. 15.--Activi-
ties OF trade associations do not con-
travene the provisions OF the Sher-
man antitrust laws. in the view oi
Attorney General Daugherty, unles.
the actual practice they develop en-
hance prices, suppress competition OF
curtail production.
The opinion of Mr.. Daugherty ex-
pressed informally and tentatively
was made public tonight by Secretary
Hoover who had made inquiry of the
attorney general as to the legal linn
its i'm which trade associations GOULD
properly operate in connection with
the commerce departments plans for
publication OF trade statistics gath
cred by such organizations.
In his letter, Mr.. Hoover asked doi
an informal expression OF views al
the eleven specific forms OF trade as
sociation activity, embracing a wide
field OF operation. He asked wheth-
er, subject to various limitations ar
association 10 provide a standard sys.
tenn of cost accounting for its mem
bers if the costs arrived at were not
distributed; il uniformity in the use
OF trade names and phrases could be
provided; il Standardization of grade
quality. processes CT production, etc.
could be arranged; il information
could be furnished as to financial re-
sponsibility: IL insurance could be
handled: If cooperative advertising
could be engaged in; If legislative
questions affecting a particular i'm
dustry could be handled, and, II sta
tistics showing production, distribu-
tion and wages, could be collected
from its members and compiled for
the information OF the secretary oil
commerce.
Mr.. Hoover inquired further IL q
trade association could engage in any
or all OF these activities provided
there was no intent to hide some
agreement to actually restrain trade
or otherwise violate the anti-trust
laws.
With regard 10 the first question,
Mr.. Daugherty declared there was no
apparent objection TO a standard
system OF cost accounting, but asso-
Citations should be warned to guard
against uniform cost as TO any item
of expense and suggested the elimi-
nation OF a part OF one question as
to the propriety of an association
furnishing trade marks for its MEM
bers.
II can see nothing illegal In the
exercise OF the other activities mem
toned" Mr.. Daugherty said, ''provid-
ed always that whatever is done is
not used as a scheme or device TO
curtail production or enhance prices,
and does not have the effect OF sup
pressing competition. 1t Is impos-
sible to determine in advance just
what the effect OF a plan, when put
into actual operation. may be This
is especially true with reference to
trade associations whose members
are vitally interested in advancing
or as they term 1t. stabilizing prices,
and who through the medium of the
associations are brought into person
al contact with each other.
Therefore the expression of the
view of the things enumerated by
you, with the exceptions stated, may
be done lawfully. is only tentative;
and IL in the actual practice OF any
of them it shall develop that compe-
tition is suppressed or prices are ma
terially enhanced, this department
must treat such practice as any
other one which is violative OF the
anti trust act"