Evening star., 1925-06-16

Renewed interest in American trade
associations a has been aroused by two
recent events-one a decision OF the
United States Supreme Court and the
other an action by indictment result
ing from prosecution by the Govern
ment The court decides that actiVl-
ties of the hardwood flooring ana ce-
ment companies, acting through their
organizations. do not constitute con-
spiracy in restraint of trade, while the
Government in it's new proceedings
contends that furniture and refrigera-
tor ma manufacturers have violated anti
trust laws.
The effect of the furniture case upon
home makers impresses the Brooklyn
Ea agile, which remarks: Every young
couple contemplating matrimony. II
tolerably sensible. counts the cost OF
home ma king and IL it Is found practl-
cally prohibitive, acknowledges the SIT
uation. If a marriage takes place. IL
is with a view to living in boarding
house or in furnished rooms. The
home in too many insta has to
be left for future consideration, be-
cause furniture Is so high. That Is
misfortune to our civilization which
can be removed or minimized II legal
proceeding can be made to keep down
the middleman's margin on manufac-
tured furniture"
Not since the great tobacco. oil
and steel cases." says the Cnicaso
Daily News, have the Federal courts
been called upon to deal with a case
under the Sherman antitrust act Una
approaches in theoretical and practical
importance the proceedings instituted
by the Attorney General OF the Unlteo
States against 263 manufacturers OF
furniture. 1t is desirable that the Su-
preme Court be afforded an adequate
opportunity to review the Sherman
law in the light of such new develop.
ments as the rise and functlonlne OF
hundeds Of trade associations, the radl'
cal change of national policy In trans
portation-where combination is de.
manded-and the encouragement OF
consultations and cooperation IN In
dustry for foreign competitors. Busi'
ness is said to need new charter.
The relation between the cement de-
cision by the court and the furniture
prosecution by the Government is
emphas by the South Bend Trib-
me. which states that the one no
doubt will have a bearing" on the
other. Large and important COM
panies will know more definitely what
thew can do in exchanging 1nforma-
ton without violating the antitrust
laws" the Tribune believes. The ef-
forts of Secretary Hoover to make
American manufacturers more efh.
cient are cited by the Birmingham
News. which continues: 1T may be
that the trusts will need a bit closer
watching. 1t may be that some who
would like to monopolize certain prod
ucts may delude themselves into be-
lieving that they will have greater
opportunities hereafter for practices
clearly against the public interest.
But assnredly there is nothing In the
courts decision to warrant such pre-.
sumption" A
'"The Sherman law" explains the
Newark News, was aimed at unfair
price fixing in restraint of trade. That
danger is present in business organiza-
tions and has been recognized by the
Supreme Court in many cases. II that
danger is avoided the association II
legitimate under the new decision" ="
The basis of profits is considered by
the Pittsburgh Gazette Times. I'VE
know now" 1t says, that the big
profits are not secured by restriction
of production and flxation of prices at
unreasonable heights. Producers must
sell their goods. Their concern is the
expansion of markets."
Organization and the trade asso-
eiation. according to. the st. Paul