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Show TRADE BUREAU QUESTION AIRED! Daugherty Outlines Their Relation to National Anti-Trust Law WASH INTiTON Teh 16 Activities Activi-ties of trade associations do not con-trayene con-trayene 'he provisions of the Bner-, Bner-, man antitrust lawe. In the view of , Attorney General Daugherty, unless in I actual practice they develop enhanced en-hanced prices, suppressed competition I or retarded production. This ruling of Mi. Daugherty expressed Infor-mallj Infor-mallj and tenl ith ly, m madi public pub-lic Wednesday by Secretary Hoover, (who had Inquired of the attorney 1 general as to the leul limits within 1 which trade associations could prop-I prop-I crly operate In connection with the I COl ercs department's plans for the publication of trade statistics gath- 1 1 i-red by such organizations. ELEVI N l CRIES In his letter. Mr Hoover asked fo tn Informal ejcpresslon of views as to eleven specific forms of trade SS-, SS-, moi lation a' tlvity, em Oi a 1 ng 1 vv Id" ' field of operation He asked whether, subject to various limitations. :in association as-sociation could provide a standard system of cost accounting for its members if the costs arrived at were I not distributed; if uniformity in the I use of trade names and phrases could 1 be obtained: if standardisation of grades, quality, pocesses of production, produc-tion, etc , could be arranged, If information in-formation could be handled, if cooperative co-operative advertising could be en- 1 gaged In- if legislative questions affecting af-fecting a particular industry could be handled, and If statistics showing .production, distribution and wages could be collected from Its members mem-bers and complied for tho informa- tioii of the secietary of commerce. 1 Mr. Hoover inquired further if a trade association could engage in any or all of these activities provided 1 here was no Intent to hide some agreement to actually restrain tradu or otherwise violate the antitrust laws. TENTATIVE REPLY With regard to the first question, j Mr Daugherty declared there waa no apparent objection to a standard s s-tehl s-tehl of cost accounting, but associations associa-tions should be warned to guard against uniform cost as to any Item of expense and suggested the ellm Ination of a part of one question as to the propriety of an association furnishing trade marks for its mem- j bers. I .... n n..(l,.n ll..rr.l In tVl,. . exei . lse i i he ot:oT activities mentioned." men-tioned." Mr Daugherty said, "pro-, vldeci always that whatever is don la not used as a scheme or device to curtail production or enhance prices and does not have the effect of suppressing sup-pressing competition. It is Impossl-1 Impossl-1 ble to determine In advance just what the effect of a plan, wheat put into actual operation, may be. This is especially true with reference to j trade associations, whose members I are vitall interested In advancing, I or as they term it, stabilizing prices, and who through the medium of the associations are brought Into personal per-sonal contact with each other. "Therefore, the expression of the view that the things enumerated by jou. with the exceptions stated, m;iv 1 be done lawfully. Is onl tentative; I and if in the aCtua practice of any j of them it shall develop that competition com-petition Is .suppressed or prices are enhanced, this department must trcal such a practice as any other one which is violative of the antitrust act." USED AS DISGUISE. Dlscu.-slng his advoeacy of trade associations as-sociations for progressive economic organization Mr Hoover told M-. Daugherty he was, nevertheless, aware lhat an impression existed with .1 small minority that individual, prohibited pro-hibited acts might be accomplished under the disguise" of such an organization. or-ganization. 'However,' Mr. Hoover said, 'to make my position clear regarding the trade associations, the existence of which I advocate, 1 desire to say that I have always taken thi- view that no body of men could combine in the form of a trade organization and do any act or thing forbidden by law if ; they were undertaken by ihem out-; out-; side of a trade organization 1 "The character of trade organlza-: organlza-: Hon. the existence of whic h should ! be recognized, is one lhat carries lawful law-ful purposes only in Us articles of association; its activities must be in harmony with Its declared purpose. The articles of association with their I lawful declared purposes, must not be I used as a mask to hide unlawful purposes." |