Evening star., 1935-04-07
CONSPIRACY LAID
TO RUBBER FIRMS
Almost Entire Industry and
Code Units Charged With
Trade Restraint.
BY the Associated Press.

BY the Associated Press.
In the first case brought by .
Government agency against N. r. A.
code authorities, the Federal Trade
Commission yesterday charged almost
the entire rubber manufacturing in
dustry, including two Of its code
boards. with conspiracy to restrain
trade.
The comp1ission asserted that the
authorities l8 manufacturing cor
porations and their principal trade
associations had fixed prices, not
only in violation of the commissions
act, but also of their own code.
N. r. A. was not directly involved
and the commission said the industry
disregarded N. r. A. orders. 1t was
said authoritatively. however. that
the Blue Eagle organization did not
cooperate in bringing yesterdays
charges.
Relations Strained.
One official said he doubted that
NJ r. A. knew the complaint was in
prospect, and officials from both
agencies concede privately that they
are hardly on speaking terms-a con-
dition that has prevailed since early
in recovery organizations existence.
There was, meanwhile, an expecta-
ton in reliably informed sources that
other similar cases will be brought
by the commission.
The Justice Department. coinci-
dentally, was busy with plans aimed
at securing ruling on N. r. AS con-
stitutionality at this term Of the Su-
preme Court. The Schechter case.
involving the live poultry code, has
been chosen for the test. officials said
they hoped the court would decide
whether to review the suit a week
from tomorrow.
The rubber case was brought after
testimony in the N. r. A. hearing be-
fore the Senate Finance Committee
by commission officials that members
Of the rubber industry had Illegally
fixed prices Of fire hose.
The complaint yesterday noted this
accusation especially, but broadened
the charge to include other mechani-
cal rubber goods.
The N. r. A. code boards accused
we're the master code authority for the
rubber manufacturing industry and
the code authority for the mechanical
rubber goods division of the rubber
manufacturing industry. The Rubber
Manufacturers Association. Inc, and
members of the mechanical goods
division Of that association also were
named Among the corporations in
cluded in the charge were B. F. Good
rich Rubber Co., Akron the Goodyear
Tire and Rubber Co.. Inc, Akron
United States Rubber Products. Inc
/ New York City, and other compan.'
in New Jersey, California, PennsI
vania and Ohio.
The commission charged that H.
authorities and firms had acted IN
der color of Office and employing
power and authority pretended by
them to be theirs as members OF
the code authorities.
The commission said these pre-
tended powers" not only were not
given them by the code, but were ex-
pressly withheld by it.
Boycotts Charged.
The commission asserted that the
members of the code authorities as
sisted and co-operated with members
of the industry in the conduct of
boycotts directed against those who
did not maintain resale prices
dictated by the corporate respondents"
. With June Is the date for expira-
( ton of the present recovery act, the
Senate Finance Committee tentatively
decided yesterday TO wind up its in
vestigation of N. R. A. within the next
/ 10 days or two weeks and get down
| to consideration OF legislation in
executive session.
( Hundreds of applications to be
| heard have been received by the COM
mittee. but the Senators have decided
1t will be impossible to hear them all.
Hugh S. johnson, former ad-
ministrator, probably will be the last
witness. He is studying the complaints
presented in the hearings and will
attempt to answer some OF the
criticism of his administration OF the
/ law