Evening star., 1941-01-08

innocently thinks will preserve for
themselves the same freedom of
action after the dispute as before.
But that was in the days before
the Department of Justice began its
consent decree" tactics. Little do
the contestants in the music writing
row realize it. but they are both
destined for the jurisdiction of a
Federal court for the rest of their
lives, and their freedom of action
will be gone when that happens.
Sees Government Coercion.
Little noticed in the controversy
has been the suit filed by the De-
partment of Justice alleging a viola
ton of the antitrust laws. BY the
use of criminal proceedings, both
sides are put on notice that i'm
portant members, if convicted in a
court, will face jail sentences.
Rather than let matters go to that
point, the coercion of the Govern
ment is likely to be accepted, in
which case Federal Court jurisdic-
ton with all its complexities becomes
the order of the day.
When a business or industry or
association comes under a consent
decree, it gives up certain rights it
had before and if changing condi-
tions requires a slight variation in
terms or provisions the consent of
the Federal Court must be obtained,
with always the chance that third
parties may insist on the right to
intervene and prevent amendments.
Very few of the businesses which
have found themselves forced by
circumstances to accept a consent
decree enjoy the relationship be-
cause it is sort of Straitjacket
which cannot but interfere with ex-
pansion or the alteration of enter
prises to fit changing conditions.
Broadcasting Companies Surprised.
The danger to both parties in the
music-writing controversy is that
lately there has been trend toward
abolition of monopolies in the case
of patent pools. The copyright priv
ilege is somewhat analogous to pat
ent pooling, and if the Government
should decide to insist that a copy
right pool is in restraint of trade,
it Is not at all improbable that the
New Deal judiciary will sustain that
view.
When the Department of Justice
filed suit against both sides, the
broadcasting companies expressed
surprise that they should be in
eluded, but the department felt
that if it prosecuted a copyright
pool on the one side it should also
prosecute any newly formed copy
right pools on the other.
The doctrine which has been
evolved in recent years among the
more aggressive exponents of the
antitrust laws is that it is all right
for an individual to patent or copy
right his work, but that the mo-
nent he bands himself together
with others he subjects himself to
legal restraints and possible Fed
eral court regulation.
Rule of Reason Sidetracked.
1t is most regrettable that the
composers and the broadcasting
companies did not find some indi-
vidual or committee of individuals
who could either mediate or arbi-
trate the dispute. The incident
reveals the lack of machinery or dis
regard of existing means for the
settlement of economic disputes.
The rule of reason. which is so often
extolled as the right way for human
relationships to be conducted, has
been side tracked by the rule of ac-
euisitiveness and by the theory that
those who possess precious product
can charge all that the traffic may
bear while those who control facili-
ties may pay whatever they please
for the products they lease or buy.
Each sides argues that it has Of
fered many basis for compromise
and adjustment and that the dis
pute has been going on so long that
an open rupture between the two
parties was inevitable. But the cost
of the conflict may turn out to be
higher than either side ever
dreamed-for, If consent decree
puts both under a Federal court, the
inf1exibility that may ensue will be a
price that neither side will later
admit was worth the war.
Whether they be music publishers,
broadcasting companies or other
economic units, the fact that inter-
mediaries have not been able to
bring both sides to an adjustment
or a peace pact Is confession of
the weakness in modern economic
society which In many specific cases
has not yet learned that the way to
solve internecine war is not to COM
NIT economic suicide.
Reproduction Rights Reserved)