Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-02-24
The Trade Organization Policy

IN pcrSuading the Attorney General TO an
nounce policy for the guidance OF trade
organizations engaged in promoting bust
ness, increasing efficiency and encouraging
better standards of commercial morality.
Secretary of Commerce Hoover has rendered
Il distinct service TO important trade inter
ests of the country. As result of the inter
departmental exchanges. these interests may
now understand with some clearness what
practices are lawful and what the govern
ment considers unlawful
Since the Department of Justice raised an
issue against trade organizations in what is
known as the Hardwood Lumber case. which
reached the Supreme Court from the Federal
District Court of Tennessee. trade bodies.
both local and national in their scope have
been in grave doubt as 10 where they stood
before the law. In that case il proved
that cost fixing, for example. was made the
basis OF price fixing and was therefore in
restraint OF trade. This seemed to bring
into question many other activities on the
part OF trade organizations engaged in coll
lccting and disseminating statistics and en-
gagged in encouraging cost accounting Sys-
TENS.
hundreds OF such bodies. uncertain and
embarrassed as to their status, appealed to
the Secretary OF Commerce for some formula
whereby they might square their activities
with the law They sought guidance and
turned III good faith for it to that depart
ment OF the government which devotes its
energies 10 the upbuiding OF commerce.
Approaching the plight of the trade bodies
and feeling sympathy for them in their pre-
dicament. Secretary Hoover engaged in CON
ference with various officials of the Depart
ment OF Justice. As result of these con
tcrences he submitted. in writing, to the At
,orney- General Il series OF questions. each
outlining an activity formerly recognized
as lawful. and asking the official Judgment
OF the Department OF Justice as to its legal
ity in the light OF court decisions and exist
ing enactments OF Congress.
These questions briefly stated involved
cost accounting, use of trade phrases stand
ardization OF grades OF products credit in
formation, membership insurance, co-opera-
tive advertising. uniform trade labels, well
iare work. legislative activity, promotion Of
closer trade relations on the part Of men,
bers collection and dissemination of trade
statistics.
After carefully reviewing the communi-
cation of the Secretary OF Commerce. the
Acknowledgement found that practically all
the activities engaged in normally by trade
organization are within the law He did not
put this out formal declaration of
policy, but as statement OF his views which
might be regarded by all concerned as au-
thoritative.
The Acknowledgement wants it clearly
understood, however. that trade organiza-
lions must not engage in any activity that
restraints trade, ntcrtercs with competition
or in any sense induces unfair trade prac-
tees. He warns all trade bodies that price
liking directly or indirectly. will be proceeded
against. With this statement OF policy.
based upon the concrete questions submitted
by the Secretary of Commerce. no CONNER
cial association need remain longer in doubt
as to It's standing before the law