Evening star., 1933-03-23

Decision by the United States Su-
preme Court that the organization of
Appalachian Goals. Inc. Is not in vio-
lation of the Sherman Antitrust
legislation, is received by the country
as a step toward better conditions. 1t
Is called q life line" for the coal in
dustry, and viewed as evidence of a
liberal spirit on the part Of the court.
The corporation Is formed for co-opera-
tive purposes by 1877 operators in West
Virginia, Virginia, Kentucky and Ten
nessee. The court holds that they are
not acting in restraint OF trade, while
public comments uphold the view that
their purpose Is to give vital aid to
the trade. The decision Is expected to
inspire similar efforts among other
producers Of commodities.
This is history making in its po-
tential meaning" says the Newark
Evening News. with the conclusion
that the Sherman law 'is liberalized."
and that the decision is not only a
basic restatement Of the effect Of the
antitrust law, but the herald OF q
changed viewpoint in its application" !"
The New York journal of Commerce
calls it "a virtual major amendment
of the antitrust laws" and holds that
cit Is better that the law be modern
lied in this way than that business be
hampered indefinitely by obsolete re-
strictions" OF the opinion that the
court made judicial history" and that
the opinion sis based primarily upon
broad economic rather than technical
legal grounds" the Journal OF Com
merce suggests that "the lumber. oil
and other raw-material production IN
dustries are now in position to curb
excessive competition in their respec-
tive fields"
Every one must now realize thinks
the Roanoke World-News, both the
wastefulness Of an unbridled competi-
ton and the fact that in the long run
it Is the public that pays for the waste. y
That paper suggests that the formation
of a Joint selling agency follows very
much along the pooling agreements
sanctioned and even required by the
Government during the World War.
The San Jose Mercury-Herald observes
that, due to the fact that "overproduc-
tion and destructive competition forced
prices below COST" the industry "has
been PROSTATE for years" and could
not pay adequate wages or maintain
steady employment" The San Jose
paper refers to the court statement as
SOu1llO11 oCA4SN, but ~ AldACc q SANNP
dent in this rigid law" Noting the
court reservation that the decree may
be reversed III future events justify such
action" the Rochester Times Union
concludes that thus the soft coal men
60 ahead improving their industry and
the public rights are protected against
future abuses" The indianapolis News
points out thai the court makes 1t
legitimate to engage in Cooperative
effort for the acquisition Of full infor-
nation as to business conditions, the
correction Of abuses and bad practices.
and for the sterilization CT business on
fair price levels of competition"
by this decision" declares the Louis
vile Courier Journal, "the Supreme
Court proves itself to be truly liberal.
Chief Justice Hughes. in his opinion,
which reflected the views Of all but cne
member of the court, held that the
establishment Of selling agency by 1877
coal producers in the Southern Appa-
lachians was not In violation Of the
Sherman antitrust law, under which
the Government brought an injunction
suit. It is q decision with which that
greatest liberal Of the Supreme bench,
former Justice Holmes, would have de-
lighted to agree The courts tnterpre-
tation Of the law Is In keeping with the
trend Of the times. Reviewing condt-
tions In the bituminous coal industry
for some years, Chief Justice Hughes
cited its dimculties and the deplorable
conditions which have resulted from
overexpansion, destructive competition
and wasteful duplication. Doubtless he
took cognizance Of the fact that the coal
operators purpose is not to restrain
trade, but to promote It,"
Evidently in this instance, as In
Others" says the Lexington Leader,
''ta1e hi6Sest court In the land has
haee4 e 2Rap4qe ypcn ths rqls g =,