Evening star., 1925-05-31
Furniture Trust Indicted.

Elimination of competition is alleged
against the 269 furniture and refrig-
orator manufacturers who have just
been indicted in Chicago under the
antitrust law. This Is one Of the
largest and most sweeping accusations
| ever brought in the Governments eff.
fort to break up monopolistic COM
binauons. The manufacturing COM
panies are classified in three groups
according TO the class of products.
One group. which manufactures bed
room and dining room furniture, radio
cabinets and clock cases, does a busi-
ness. it is alleged, Of $50 ,ooo, 900 yearly;
another group, manufacturing refrig-
orators, does an annual business Of
SIS 900 900, and third group of chair
manufacturers does SIS, 900 900 Of bust
ness also each year. Thus these three
groups OF 26S firms and companies
have a yearly business of $1l0, 900, 600
This industry closely concerns the
public. 1t supplies a necessity Of gen.
eral use. II the Governments accu-
ations are justified trust methods
have been employed by these firms
and corporations without actual mer-
ger and unified ownership. The in
dictment charges elimination Of COM
petition through understanding and
agreement as to prices; also that ex-
cessive and exorbitant prices are fixed
by this understanding and agreement.
1t is alleged that through three asso-
Citations the member corporations and
firms distribute for mutual informa-
ton reports of the details Of their bust
ness for the purpose of avoiding and
preventing breaches in the understand
ing and agreement. In other words,
1t Is alleged that so far as the fixing
and maintenance of prices are con-
cerned the manufacturers in three
different groups Of the business are
practically united as closely as they
would be in single corporations.
1t must be said that II these 26s
firms and companies have been brought
together to the point Of effective asso-
citation for price fixing and for distri-
cial engineering has been accom-.
plished. 1t is no small task to unite
upon such policy as that which is
charged in these indictments so large
a number OF naturally competitive in
dustrial units. And the menace to the
public welfare is the greater for the
difficulty and the magnitude Of this
task.
The theory upon which the anti
trust law was enacted is that con-
solidation and intercorporation agree
ment for the control Of prices is con-
trary to the public interest. Under
the operation Of this act the Govern
ment has conducted numerous trust.
breaking" suits and prosecutions. It
has caused the dissolution Of large
corporations formed by the consolida-
ton OF numerous smaller competitive
units. It has not, however, eliminated
the trust.
The essential element in this prose
cution under the indictments just re-
turned in Chicago will be proof by
the Government of an effective com
pulsory understanding between the in
dividual firms and corporations, ef-
fective in the actual control OF prices
and compulsory in that member firms
and corporations are not free to follow
competitive practices, being bound by
contracts to observe territorial rights.
to avoid rivalries and to exchange In
formation. II these points can be es-
tabllshed this combination, which is
now attacked as a veritable trust, will
be destroyed.