Evening star., 1934-12-02
Trade Associations
Viewed Under N.R.A.
BY HARDEN COLFAX.

A Federal Government official re-
marked the other day that II any
thing at all resembling Fascism ever
came to reality in the United States
it would probably have to work itself
out through some orderly development
of our trade associations. In this con-
nection it is interesting to look at
these associations in the light OF
what N. r. A. has accomplished.
A critical observer of just what has
been happening to trade associations
and other commercial organizations
since N. r. A. began to function has
compiled a list of "hindrances" and
helps" which-since it is Endorsed as
generally accurate and justified by
Federal Government experts-is sig
nificant.
The list, made public this week, in
cludes on the minus side number
of points which the associations
themselves are emphatic in setting
down as losses"
1t is realized that, when Congress
meets in January, many New Deal
policies will be overhauled, certainly
the national industrial recovery act.
Then it has been said that no single
unit In our business structure is to be
so vitally affected by what is done by
Congress as the trade association. In
quiry among large group of associa-
ton executives and business leaders as
to what they think has brought out
some interesting points.
Trade associations have been HARM
ed, We are told, in a number of ways
by the operations of N. r. A., but
| benefited in others. Summarizing the
points Of injury it was said at the
Commerce Department that the great
| est single harm seems to have been
in diverting groups from many Of
their accustomed worthwhile activi-
ties. N r. A. codes almost imme-
| diately absorbed all the attention of
business groups and their money as
well, to the detriment of trade pro-
motion, education and other work
This caused the death of some of the
weaker associations, while the code
authorities absorbed many activities
from others.
| Then came "a lot Of unsound
thinking" leading these organized
groups to abandon traditional COOP
erative methods for the code pro-
gram; that is, compulsion under law
| This frequently caused bad feeling
inside the groups. The associations
also lost in dues. Then, it is said, in
many cases N. R. A. has turned trade
associations into little more than
complaint bureaus, while, in some in
dustries which had no trade associa-
tions, "racketeering association execu-
tives have been able to sell them
selves as saviors." Some antagonism
has been created between Govern
ment and business which has hurt the
trade associations, while in some cases
the big fellows have been strengthened
+, against the little men.
On the credit side it Is admitted
] that the N. r. A. has tended to in
crease trade association membership
has helped toward sounder financial
condition, has made the entire CO.
operative movement look better tc
business in general, and has forced
some associations into work they hac
heretofore avoided to their disadvan-
tage. It has created and set up asso-
Citations In industries in which they
never existed before, has popularizec
the gathering and use Of commercial
statistics, has exposed many ques.
tionable practices, and has given the
Federal Government a more realistic
view of what trade associations car
do and have accomplished.
It has made more likely review Of
the antitrust laws, has demonstrated
the need for good professional associa-
ton executives and has shown thu
usefulness Of q better geographical
distribution of membership in the as.
sociations.