Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-13
COMMISSION RULE
ON TRADE REVOKED
"ClandeStine Violation" Prin-
Ciple Discarded After Brief
Test-Vote Is Close.
BY JOHN F. sINcLAIR.

Special Dispatch TO The star.
NEW YORK, June 13.-The Federal
Trade Commission by q vote to has
reecinded the so-called "clandestine
violation" rule Of enforcing trade prac-
tice agreements. The resembling Of
this rule, adopted by the commission
only last October, 10 considered a dis
tinct victory for w. K. Humphreys.
At the time of its adoption, also by
vote of 5 to 2, the rule admittedly
was an experiment No evidence was
presented to show that any harm re-
suited.
It was largely through the work of
Herbert Hoover in the Department of
Commerce that many trade conferences
were held to formulate rules for the
conduct of industries. The cotton men,
Tor example, would get together and
draw up working rules for the entire
industry. And so in many other in
dustrieS trade practice agreements were
drawn up and Endorsed.
Naturally, there were people in nearly
every industry who did not care to
follow the rules laid down. So the
Federal Trade Commission adopted the
"clRndeStine violation" rule as q method
of ''rationalizing the Sherman act
method whereby the independent units
in business might enter into agreements
Tor their preservation.
AASAA OAAC VI Vie
resigned, and the commission withdrew
the rule by the same vote by which it
was adopted
E. A.. McCulloch, chairman of the
commission, who opposed the resembling
says:
In my opinion the commissions
policy of preventing secret violations Of
trade conference rules is not invalid
and 1t should not be abandoned-the
n0lfHU iC Qf 1aaSf E.n.
can. II pursued. result in no harm TO
business interests, and, on the contrary,
might be helpful"
The resembling of so important q
rule after such a short period Of test
reveals the weakness of the structure
OF the Federal Trade Commission as il
is now constituted
DR.. Robert NJ. Hutchins, 81, new presi-
dent of the University of Chicago, made
two significant statements within
week.
AS retiring dean Of the Yale Law
School, he made an address warning
against the steadily increasing number
Of inferior law schools
I'm Greater New York alone there
are $4,000 law students" he said. only
700 OF these are in a school which has
standards high enough to be approved
by the Association of American Law
Schools.
The other day DR.. Hutchins made his
frst trip to the University of Chicago
since his election. He said: MY view
OF university training is to teach men
to think. to think straight, If possible;
but to think always for themselves"
Speaking of the business of education
and the business life, Arthur E. Morgan,
president Of Antioch College, Ohio, is
a leader anything but conventional in
his views of education and business.
Recently, discussing pressure of popu-
lation on world affairs, he said:
In a century world population has
more than doubled Emigration does
not permanently relieve pressure Of
population. Some overcrowded nations,
such as Italy, Japan and Belgium, con-
denim birth control and encourage o
high birth rate. Others, like Switzer-
land and Holland, with birth control
openly taught, have overproduction Of |
high-grade people.
Some nations have a concept Of |
values In which quality of life is con-
sidered along with quantity. This
standard requires limitation Of popula-
ton. Its fulnllment would be nullifed
by unlimited immigration"
tCopyright, 1879. by North American News
paper Alliance)