Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-16
COPPER CUT PLAN
TESTS TRUST LAW
lndustry's Proposed Slash of
10000 Tons Raises Old
Legal Question.
BY DAVID LAWRENCE.

Announcement that the copper in
dustry wishes to bring about definite
clirtailment of production of about
10000 tons q month"; in order to I'M
prove the price Of copper, has brought
to q head discussion that has been
going on for some time as to the natu-
raj conflict between the antitrust laws
on the one hand and the desire for q
of standards Of living on
the other.
prices fall and there Is q free market
With q curtailment prices are kept
high. Producers like this state of af-
fairs, but purchasers of these commod-
titles want the benefit Of depressed
prices.
The Government is torn between the
necessity of protecting the consumers of
products and the recognition Of how
tries that they be permitted some form
OF curtailment
Coal Industry Cited.
The coal industry was referred to by
President Hoover in his recent speech
In Boston as needing consultations as
well as curtailment Of production, and
Mr.. Hoover indicated that he might
favor revision Of antitrust laws. The
oil industry has been practicing cur
tailment to its own advantage for more
than q year, but has obtained State leg
isiAtton based upon the theory of con-
servation Of natural resources.
No such theory can be applied with
respect TO copper, as there is a plenti-
full supply, but the copper industry, on
the other hand, Is q vital factor in the
prosperity Of the country and is equally
insistent that 1t be given a chance to
maintain prices on a basis that win
permit more employment as well as q
good wage to its employees.
Some forms Of curtailment have been
pract1ced In the copper industry by
definite agreement in the export trade.
The Government does not object TO
trade agreements fixing prices in for
eign trade-in fact, this has been al.
which, indeed, superseded the Sherman
law so far as export trade was con-
cefned
Same Domestic Privilege.
What the copper producers would
;. ike to see Is an acceptance Of the prin-
eeiple in domestic trade just as has been
the case in foreign trade. The Sher-
man law, however, permits no excep-
ton, and the Department of Justice is
IN duty bound to prosecute anybody
who engages in price fixing The COP
per producers, on the other hand, know
the law and are not likely to take any
action which will get them into dim
cuIties.
It is serious question whether the
announcement Of an industry Of its de-
sire to curtail by 10000 tons or any
thing else differs from the practice that
has grown up Of publishing production
figures which enable individual pro-
dt1cers to make voluntary cuts In
production.
Also, with the existence Of the long
distance telephone, as well as the OPP
portunity for informal conference. there
Is great difiiculty in getting evidence
nowadays OF any concerted action.
Many sided Issue.
Indeed, the problem Of curtai1ing
production is open to many interpreta-
tions apart from its effect on price
fixing Trade associations exchange
data on production figures. It has been
commended that the fixing Of prices may
be separate and distinct from produc-
ton data, though there Is unqlestion.
ably o cause and effect between them.
There never has been . case IN which
. simple agreement TO limit production
has been threshed out, without any
evidence of price fixing connected with
it. FOR some time 1t has been believed
that the limitation Of exports in the
skcopper industry has. In effect, had
Relationship to the price Of the domes-
tic product.
New conditions and circumstances
are always arising In industry affecting
interpretations Of the Sherman law, and
1t would not be surprising II out Of the
copper inEustryis decision In this In
stance became q test case some day,
though, to be sure, the Federal Govern
ment Is not at the moment inclined to
exercise is police powers at all.
(Copyriaht. 1897