The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-02-16
LIMITS
TRADE ASSOCIATION
Must Not Enhance Prices, Suppress
Competition or Curtail
Production.

WASHINGTON, Feb. 1G,-Activities
of trade associations do not contravene
the provisions of the sherman antitrust
laws. in the view of Attorney-General
Daughcrty. unless in actual practice they
develop enhanced prices. suppress competi-
tion or curtail production.
Mr.. Daughcrtys opinion. expressed in
formally and tentatively, was made pub
lie last night by Secretary Hoover. who
had inquired Of the attOrney-general as
to the legal limits within which trade as
sociations could properly operate in CON
nection with the commerce department :
plans for the publication Of trade Statis-
tics gathered by such organizations
In his letter, Mr.. Hoover asked for an
informal expression Of views as to II
specific forms of trade association activity
embracing a wide field of operation. He
asked whether. subject to various limita-
tions, an association could provide stan
dard system of cost accounting for its
members if the costs arrived at We're not
distributed: if uniformity in the use of
trade names and phrases could be pro-
vided if Standardization of grades, quail
ity. processes of production, etc, could be
arranged if information could be fur
nished rs TO financial responsibility if in
surance could be handled it cooperative
advertising could be engaged in: If legiS-
latiye questions affecting n particular in
dustry could he handled, and if statistics
showing production, distribution. wages,
etc, could be- collected from its members
and complied for the Information Of the
secretary of commerce.
Mr. Hoover inquired further if trade
association could engage in any or all
these activities provided there was no in
tent to hide some agreement actually to
pas fYsaI mr. ot viz
antitrust laws.
With regard to the first question. Mr..
Daughtery declared there was 10 appar.
ent objection to standard system of cost
accounting. but associations should be
warned to guard against uniform cost a.
to any item of expense and suggested the
elimination of part of one question as to
the propriety of an association furnishing
trade marks for its members.
4 can see nothing illegal in the exer.
else of the other activities mentioned,
Mr.. Daugherty said. provided always
that whatever is done is not used as q
scheme or device to curtail production or
enhance prices, and does not have the
effect of suppressing competition. Ii is
impossible to determine i'm advance Just
what the effect of n plan, when put into
actual operation. may be. This is eSpc
cially true with reference to trade aSSocia.
tiOnS, whose members are vitally inter.
ested in advancing or, as they term it,
Stabilizing prices and who. through the
medium of the associations, are brought
into personal touch with each other.
Therefore, the expression of the view
that the things enumerated by you. with
the exceptions stated. may be done law
fully is only tentative: and if in the act
ual practice of any of them it shall de
velOp that competition is suppressed oI
prices are materially enhanced, this de.
partment must treat such n practice as
any other one which is violatiye of the
antitrust act"