Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-01
NO TRUST BUSTING
CAMP A|GN PLANNED
Government Not Expected to
Engage in War on Trade
Associations.
BY DEAN DINWooDEY.

The filing of an antitrust suit seek
ing dissolution of the Sugar Institute
does not presage ''trust-busting" cam
paign by the Department of Justice
directed against the 80 or more national
I trade associations, it was learned from
an authoritative source within the de-
partment.
! The proceeding instituted against the
| Association of Cane Sugar Ref1ners is
indicative, however, of the determine
| ton of the officials charged with the
enforcement of the Federal antitrust
laws to put a stop to practices consid-
cred by them as attempts TO violate the
Sherman and Clayton acts under the
guise Of trade practice rules adopted by
the members of any industry.
Cooperation Not Opposed.
Any trade association which, in the
opinion of the department, is attempt
ing, either directly or indirectly, to
control prices or stife competition may
sooner or later expect antitrust charges
to be filed against it and its members,
but beyond this the Department of
Justice Is not in the slightest degree
hostile to what it considers the proper
activities and healthy growth of trade
associations. Cooperation Is not OPP
posed so long as it does not tend toward
price-fixing.
Coincident with the filing Of the
charges against the Sugar Institute by
the Department of Justice, the Federal
Trade Commission announced compile
ton of its review of rules OF business
practice adopted during the past five
years, at the commissions solicitation,
by so industries at trade-practice con-
ferences. These business codes were
approved by the commission at the
time of their adoption. Later the De-
partment of Justice found several IN
dustrieS engaged, pursuant to these
codes. in practices which it thought
contrary to the antitrust laws. Now
the commission. by its review, has with
drawn approval of those rules which 1t
believes might possibly be USED 10 CLOAK
unlawful practices.
The fact that the Justice Department
and the Trade Commission acted in these
matters at the same time has no sig
nificance. The commissions action has
long been awaited. Though the suit
fled against the sugar institute Is the
elimination of Investigations by both
the Trade Commission and the Depart
ment of Justice, these agencies ord1nar-
ily work entirely Independently OF each
other. This policy, in fact, has led to
cross purposes. Neither requests the
other to institute proceedings under the
antitrust statutes. They cooperate
merely in the gathering of information
by investigations to avoid duplication
of work. Thus the information gathered
in the investigation which the commits
sion has made in reviewing the trade
practice codes will undoubtedly be
available to the Justice Department.
But no concerted or cooperative action
is anticipated.
Object of Laws.
The policy of Federal officials in
seeking to enforce the antitrust
statutes at this particular time. APP
parently does not, in their opinion tend
to retard general business recovery. The
antitrust laws, it is pointed out, are
primarily aimed to protect economic OPP
portunity Choking competition is not
considered inducive to sound develop
ment in the business world. The con-
sumner is also said to have a stake in
the matter The petition in the sugar
institute case alleges that the consuming
public has been required to pay large
sums in excess of what it. would have
been required to pay in a free market.
This is not the only antitrust suit
filed against trade association re-
Gently. Consent DEGREES have been OBJ
tanned in several others within the past
few months Department Of Justice
officials would not state whether pro-
ceedings against any other associations
are presently contemplated.