Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-13
Washington Ticker
BY the Associated Press.

BY the ASSoclAeo FfeSs
Possibly no modern business develop
ment is more strikingly illustrative OF
new economic sentiment than the pres
ent replacement of unlimited competi-
ton by trade cooperation now COM
plete In 81 industries and being carried,
under Federal Government auspices,
into many more Within q decade a
Government attitude which solely
sought to bring business associations
into court for prosecution as restrainers
of trade has so far altered that the
Federal Trade Commission is now pros
ecuting In court individual business
associations which have failed to COM
ply, in effect, with business rules laid
down by common consent by aSSocla-
tons of the industry. VIII e. Hum
phrey, one of the commissioners, whose
term of ONCE has conceded with the
rights bout-face of public sentiment
toward business organization, remarked
in describing the processes now going
on that they represented perhaps the
most remarkable phase OF modern
commerce"
For more than two years now the
commission has stood ready, when ap-
preached by representatives of any
particular trade or industry, to call a
trade practice conference" Commits
sioner Humphrey explained. I'm these
Senbled representatives Of Congress re-
sponsibly conducting from IS to 80 per
cent Of the output or business done in
that particular line. These people pre-
sent to us in detail a series Of the reg
ulations and understandings on which
they consider business ought to be
done in their trade. Some of these re-
late to elimination of sharp practice
towards competitors or consumers; some
of them relate to characterizations to
be given to goods and advertising rep
Sometimes there is far from general
agreement as to the advisability of
general adoption of some proposals.
Indeed, discussions are occasionally
very acrimonious where competitors
meet.
Now, when a general trade agree
ment can be reached in such con-
ference We classify the code laid down
in two divisions. One section of it,
which we find to be dealt with by
Federal law, we promulgate as a COM
mission regulation. Business men who
fail to live up TO 1t are thereafter sub
ject to prosecution by the commission
in the courts as engaging in legally
unfair business practice. The balance
of the agreement, which relates to
activities that we consider possibly
reprehensible, but nevertheless not le-
gally subject to ban, the trade repre-
sentatives adopt for their own guidance.
We have prosecuted number of con-
Germs for failing to live up to the legal
lied portions Of such agreements, but
1t may be astonishing to know how
general is the business compliance with
the extra-legal requirements. Busi-
ness men who reach an understanding
with their strongest competitors, even
under stress of hard conditions, can
as class be expected to stand by
their words.
What does the public get out Of it?
Generally, the elimination of waste,
the maintenance of standards, and the
abandonment of misrepresentation
Secondarily. the general public adj
vantage from the new spirit in BUSH
ness, and the maintenance Of service"
Price discussions as yet remain OUT
side the typical trade conferences. In
Europe now, where the cartel system
of fixing prices is openly recognized
by leading industrial countries, court
cases are frequent in which individual
business Arms are being punished and
fined for selling goods at prices below
the figure fixed for the commodity by
the general combination.
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