Evening star., 1934-10-07
i. s. COURT VO|DS
N.R.A.PR|CEF|X|NG A.
Judge Enjoins Prosecution of
Lumbermen Selling Un-
der Code Levels.
BY the Associated Press.

By the Associated Press.
MEMPHIS, Tenn, October 6.-Fed-
eral Judge Harry B. Anderson late to-
day ruled that price fixing is unau-
thorized by the national industry re-
cavery act. The decision may affect
other codes of major American in
dustries.
The judge enjoined Federal officials
from prosecuting lumber operators for
selling at prices below those specified
by the national lumber code.
Judge Anderson held that ANY price
fixing is the antithesis OF competition,
for or otherwiSe-and there is nothing
in the national recovery act to show
that such was the intention of Con-
gress." The term fair competition, "
Judge Anderson said in his opinion,
negatives any such construction"
There is no mention in the national
recovery act itself of price fixing or
price protection" he said, adding,
however, that this act did authorize
the various industries to compile codes
OF fair competition.
No Precedent Found.
From time to time, as witness the
Lever act, legislative bodies have fixed
maximum prices with doubtful sue
cess" Judge Anderson said. mo legis-
lative body has ever fixed a minimum
price to my knowledge. To hold that
Congress in the national recovery act
has fixed a minimum price by impli-
cation is to carry judicial construction
too far"
The judge granted a temporary in
junction restraining William McClan-
ahan, United States attorney for the
western district of Tennessee, from
causing the arrest, indictment or
prosecution of any lumberman for vio-
lating the price fixing or price pro-
lection clause of the lumber code ap-
plicable to the hardwood industry in
West Tennessee.
At the same time Judge Anderson
dismissed the application for a COM
panion injunction against the Hard
wood Manufacturers Institute, code
administrative agency for the South
ern hardwood and Appalachian re-
gions, on the ground that that agency
is powerless to institute criminal ac-
tionS
The injunction was granted in be-
half of IS Southern hardwood lum-
Der firms opposed to fixed prices"
The Is claim they speak for approx
mately 900 lumbermen.
Reverses AuthOrity's Stand.
The decision came the day after the
Lumber Code Authority. at Chicago,
decided to retain minimum price pro-
visions of the industry's code and to
'see that they are enforced"
Although today's injunction was a
temporary one, attorneys for both
sides agreed that there was no dis
pute as to facts. The Government s
appeal will be taken in the sixth
United States Circuit Court of Appeals
at Cincinnati when and if the injunc-
| ton is made permanent at a hearing
not yet set.
The objectors were represented by
their counsel as in complete SYM
pathy with the N. r. A., with pro-
duction control provisions of the code
and with wage and hour features.
Lowell w. Taylor, of counsel for the
petitioning lumbermen, declared that
'it means that lumbermen can sell at
any price they want to, without fear
| of prosecution"
N. r. A. officials last night said they
were not surprised by the Memphis
Federal Court decision against price
| fixing under the lumber code and add
ed that they expected to appeal very
soon.
CODE HELD USURPATION.