Evening star., 1923-12-14
PRAISES VERDICT
ENDING COMBINE
.Daugherty Holds Cement
Trust Decision Establishes
Code of Business Ethics"

The decree signed by Judge Knox
in New York dissolving the Cement
Manufacturers Protective Associa-
tion was viewed by Attorney Gem
eral Daugherty last night as laying
>down the most comprehensive and
definite code of business ethics" with
respect to trade associations in any
case yet arising under the antitrust
laws
The decree was signed in the suit
brought by the government more
shan two years ago under the Sher-
man antitrust act and in conformity
with an opinion in the case filed by
Judge Knox last october.
AN effort has been made" Attor-
nCy General Daugherty said in IL
statement commenting upon the ac-
tion. ito meet the demands of the
decree which would be equitable
and fair in all respects.
Other Cases as Landmarks.
Just the Standard Oil and to-
bacco cases are recognized as land
marks in the law with respect 10
combinations brought about by con-
solidations, so will the cement de-
cree serve as Il guiding principle by
which trade associations and the
members thereof must be governed
in their future activities.
Holding the association, whose
membership includes the principal
cement manufacturers of the coun-
try. to lie an unlawful combination
i'll restraint OF trade, the decree en-
Joins the defendant companies from
effeCting any similar combination or
organization having the same pur-
pose and effect"
Among other asso citation practices
enjoined are the establishment of
mill h9 nriCpS' and ''arll-
trary freight basing points other
than the points from which ship
nlents are actually made. In con-
neCtion with the latter restraint the
defendants also are enjoined from
selling their product #. o. b." point
OF delivery exclusively.
Cites Practices Enjoined
other practices enjoined in the de-
cree include establishment of uni
FORM rates Of discount or uniform
terms for payment of bills; limiting
che quantity of cement to be shipped
30 a dealer within Il specified time:
prohibiting the 'diversion of so-called
1nisuse of cement sold on specific job
contractS maintalnlmS ,,C,It unl1oTItt
sold to a dealer and contractors: fixing
or suggesting the amount Of commits
sion or profit dealers should be re
ouired to make; regulating or limit
ing the production of cement or the
a
The members were further re-
strained from limiting the time
within which quotations must be ac-
cepted and deliveries made" and re-
fu&ing to grant extensions in time
cf deliveries. Making price changes
effective "as of the date quotations
are written" and guaranteeing prices
against decline We're other acts en-
Joined in the decree.
The decree set forth specifically
that none of the above restraints ap-
Piled to any of the defendant COM
panies individually.
Forbfds "so-calIed Freight Books
A section enjoining the companies
from circulating among themselves
"so-called freight books, showing
freight rates on cement from any ar
bitraIily established freight-basing
point to the points Of delivery
throughout the territory comprising
their mat ket." was defined as not pro-
hibiting the defendants from main
tanning or subscribing to "a traffic bu-
reau to furnish rates or rules of
transportation that may be contained
in any public schedule or tariff" All
rates so furnished, however. shall he
the actual rates between points of
actual shipment and delivery" the
decree said.
While setting forth the right of the
defendants to maintain or subscribe to
a credit bureau for the sole purpose
of furnishing information as to the
credit of prospective purchasers, the
decree enjoinS them collectively and
individually from agreeing TO refuse
TO make sales to particular customers
and from agreeing upon Cfrcum-
stances or conditions which shall eX-
clude customers from being extended
credit"
The court expressly retained juris-
diction of the case for the purpose of
enforcing the decree and also enabling