Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-17
Rights of Industrial
Associations Outlined

Action by the Department Of Justice
against the Sugar Institute and the
promise that proceedings may be in
stituted against other trade associa-
tons for violations Of the antitrust
laws have renewed In the minds Of
many, apparently, the belief that CO.
operation Of any kind within any trade
fact; the Attorney Generals action and
his warning were directed specifically
against the price-Axing and restraints
of trade.
The best and most authoritative
statement I have seen upon this most
important matter was made very re-
Gently before the New York County
Lawyers Association by David L.
Podell. Mr.. Podell, 1t will be recalled,
was special Assistant United States
Attorney General under Harlan +.
Stone in charge in New York of the
antitrust prosecutions of the Trenton
Potteries, the Tile Association, the Ma
sons, Plasterers and Bricklayers' Asso-
citation, the Terra Gotta Association, the
cement group and the window glass
group. In each of these prosecutions,
with the single exception Of the window
glass case, Mr.: Podell was successful.
number of cases being carried
through the United States Supreme
Court. It is fair assumption that he
speaks with the authority of theory
and practice alike. In his statement
before the Lawyers Association he said
BY and large, merchants are not
aware that existing law accords to their
trade associations every opportunity for
determining the state of the market
with respect to production and with re-
spect TO many OF the details relating
to production.
att is y,roy,a- for A. ,..o.I -
trade association to report to their GEN.
tral agency the volume of production
ana the capacity of their output. That
information may be tabulated by the
central agency and may be disseminated
among the members, so that each of
the members can at all times. under
existing law, keep himself fully Informed
as TO the quantity produced by his group
IN the industry and the respective ca
pacities of its members.
The members may report their stocks
on hand at any given period. and that
information may be generally dissem-
mated.
1.-The members may, in turn, report 20
their central agency the cost of their
product, so that each member Is not
only aware OF the quantity produced by
the group, but also check I'D his own
cost to see whether or not he Is waste
full in production cost.
And the members may under exist
ing law report to the central agency
and to each other the actual prices
which their commodities have brought
u past transactions. The better opinion
seerSs to be that the members may re-
port the untitled orders on hand and ex-
change that information among them
selves.
THE inhibitions Of the law are
against agreements which Ak a giver
| price or agreements which curtail pro-
| duction. Our Supreme Court even goes
so far as to recognize that the dissem.
nation OF all this information will have
an inevitable tendency to regulate pro.
duction and to stabilize prices. Indeed
that information Is allowed to be dis.
| seminated among the members for the
very purpose Of permitting enlightened
individual freedom Of action both with
regard to price and with regard to pro-
duction. The law makes no objection u
the fullest education Of each member ir
his own industry SO that he can intelli.
gently determine what his quantum OF
production may be, or what his price
should be. Our law goes SO far as x
| permit discussions on these subjects O,
cost and Of quantity Of production at
open meetings. maple Flooring Man.
ufacturers' Association ct al. vs.. United
States, 268 U. 8. 563 1925. Opinion o.
Mr. Justice Stone.)
There Is vital distinction between
these permissible activities and ar
agreement among the membership K
| maintain q certain price or to curtai
proceedings.
"Too many Of our trade association,
are ignoring these privileges under the
law. Their members, either unaware Of
their rights under the law, or fearful
that the exercise Of those rights may be
rnisconstrued by an overzealous prose.
cutting officer, have been exceedingly
| slow to avail themselves Of these oppor.
tunities for knowledge which will aic
in their intelligent conduct Of their re.
| spective businesses.
John Lord O'Brian, the assistant x
the Attorney General and head Of the
Antitrust Division of the Department
| OF Justice, declared in q recent ad.
dress before the United States Chamber
Of Commerce:
| Every experienced lawyer know.
tributed and are contributing to tn,
development Of a sound public opinion
In the special fields Of industry. NJ
one understands this better than the
law officers Of the Department of Jus.
tice, and can assure you that the de.
partment Is not IN the slightest degre.
hostile to the proper activities arc
healthy growth Of trade associations >
| This seems to me an enlightenint
statement Of the situation and one thai
1t Is helpful to bring to attention at thi.
time. w. P. BEAZELL.
/