The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1935-06-12

them power to fix prices and re.
strict due ion. Organized
labor wants section IA and the
short hours provided under codes.
Mr.. Roosevelt, after his horse.
and-buggy spaSm, appears to be
seeking some way to restore the
code system by voluntary agree
ment."
Thus there are several factors
working to find some way to get
around the effects Of the Courts
decision.
But If they are to get bust
ness men to enter voluntary
agreements which amount to
anything, they must do things
to the antitrust laws, which for
bid such agreements. Some
don't want to subject them
selves to the restrictions of an
agreement" unless they get
something out of it in the
shape of exemption from the
antitrust laws. Others are just
afraid of the antitrust law pen
altieS, and won't enter cOlluSive
agreements unless specifically
given exemption therefrOm.
So it is now proposed to make
such an exemption from the pro-
visions of the antitrust laws
part of the skeleton codes. An
amendment is pending to allow
voluntary agreements, even if
they violate the law, providing
only they are entered into for
one of two purposes. If they
are Cd to enforce section IA
collective bargaining), or CD to
prevent unfair trade practices"
such agreements would be made
legal.
In my opinion this is highly
dangerous. These provisions would
almost certainly be abused. The
second one would virtually abolish
the Antitrust laws in important
cases. Under it, a monopolistic
group would agree to fix prices
and restrict production, but would
take the curse off by STIMULATING
that their purpose was to prevent
unfair" pratices.
What Mr.. Roosevelt Is doing is
to figure that he can give organ
lied labor something by allowing
business monopolies. He may even
be seeking to restore the MIRA.
But there are two main ques-
tons to be asked. Cd What about
consumers? 90 What about the
ultimate results for business?
If monopolistic price-fixing trade
groups are to be authorized. and
exempted from the Antitrust
laws, they will seek higher prices.
Their costs will be high. Ineffici.
ent producers will be protected. In
some industries it will be N. r. A.
all over again. Markets will be
limited by consumer resistance.
Worst of all, such a policy
would eventually lead to complete
governmental control. Business
men should learn that the public
will not long sanction monopoly.
In the end, the government would
turn on them.
If we are going to have the
system of individual initiative,
with prices and profits CONTROL
ing business, we must have COM
petition. Business leaders
should think twice before put
ting their neckS into these
code noOseS.
I can think Of only two limita.
tons upon what might be done
under the proposed voluntary
codes.
l. Some business men will not
want to come in, and will remain
"recalcitrant." But compulSion
might be used, for the govern.
ment would not buy from non
members, and might tax them
heavily. Boycotts might be
organized against them. In any
case, such groups as steel and
copper, would come in fast
enough.
2. Has Congress power to dele
gate to Mr.. Roosevelt the arbitrary
authority to decide when a code
is operating to prevent unfair
competetion"? I doubt If such a
delegation Of power is in accord
with the Supreme Courts de.