Ndvi'uiiiiM- 1(1. i:i'ji 



HARDWOOD RECORD 



19 



Administration Awaits Court Decision on Open Trade Associations 



Tlif .■Kliiiinistration's policy toward open tradf associations is 

 not to be revealed at this time. A conference between Secretary 

 of Commerce Hoover and Attorney-General Daugherty about ten 

 days ago resulted in a decision to postpone any announcement to 

 the business public of the government's policy toward this ques- 

 tion, pending the appearance of the decision by the Supreme Court 

 of the Ignited States in the anti-trust suit against the American 

 Column & Lumber Company, now pending. 



The solicitor-general, in arguing the case, said tliat a decision 

 upholding the. practice would sound the death knell of the Sher- 

 man law. 



It is the attorney-generars opinion that the issuance of a state- 

 ment from any branch of the government as t6 , a general policy 

 toward these organizations would be untimely during the pendency 

 of a suit at law involving this very jCjuestion. A decision may be 

 handed down in the lumber case before many weeks, after which 

 time presumably some statement of the administration 's policy 

 toward open price associations will be made. 



It is- understood that Secretary Hoover favors the issuance of the 

 statement now, Imt has deferred to the views of the attorney- 

 general, on account of .the legal question involved. 



The attitude of Secretary of Commerce Hoover toward trade 

 associations was expressed in an address on October 28 before the 

 organizing meeting of the Synthetic Organic Chemical Manufac- 

 turers' Association, a new trade association. The secretary's state- 

 ment was of special interest following so closely upon the decision, 

 arrived at during the conference between himself and Attorney- 

 General Daugherty, that the administration would not make a 

 statement of policy of the government toward trade associations 

 during the pendency of the lumber association suit before the 

 Supreme Court. 



The burden of the secretary's remarks, which are to be regarded 

 as an expression of his personal view, rather than an official admin- 

 istration statement, was to the effect that the trade association 

 idea is sound despite .the fact that it has been brought into partial 

 disrepute by a few unfair bodies which may have used their organi- 

 zations for restraint of trade. He said: 



The trade associations throughout the country have been snhjcct to a 

 groat deal of criticism because some ver.v small minority of the associa- 

 tions have undertaken practices tliat were, in fact or in suspicion, a viola- 

 tion of the restraint of trade acts. .\ short time ago a canvass was made 

 of trade associations to find the number that embraced in their category 

 of effort those particular functions that are subject to a suspicion, and it 

 was found that less than ten per cent of the trade associations of the 

 United States have any functions of that character at all: that there were 

 associations that had been created under the name and cloak of trade asso- 

 eiations for the purpose of restraint of trade and of combination ; that it 

 had brought the wliole world of trade associations into some criticism. 

 But that canvass an<l knowledge of the department of the working of the 

 vast majority of trade associations in this countr.v convinces me that the 

 objective of tliese firganizatifms is not in the remotest sense against the 

 public interests ; that, in fact, a study of the trade associations that we 

 made shows something like thirty different lines of activity in which the.v 

 were engaged governing a great range of educational subjects, matters of 

 improvement in fundamental practice in the industry as to trade ques- 

 tions, interest in matters of transportation, elimination of waste, foreign 

 trade — some thirty-four different activities ; and of all those activities there 

 have been emliraced only two that were at ail subject to discussion as to 

 whether or not they were against pul)lic interest in even a remote sense, 

 and. as I say. less than a very small fraction of these associations were 

 even engaged in thtise. 



So that I feel that the trade associations have been unduiy criticiseii 

 and that they do contain in them a tremendous possibility, and. in fact. 

 the only avenue that I can see by which the government can get into 

 contact with the trades in the mutual advancement of some of our most 

 fundamental interests, and it is the only avenue that I know where it is 

 possible to take up these collective problems and get some solution. 



Secretary Hoover estimated th;it the organic chemical industry 



had saved a l)illion dollars by the utilization of prod\icts which, 

 without organic chemistry, would have been wasted. He said: 



Th<! Departirient of Commerce has taken a very large interest in this 

 waste (|uestion in a great many aspects because we have established in 

 the United States a standard of living, a rate of wage that implies a 

 standanl of living higher than tliat of any other quarter of the world. 

 We, none of us, want to see that standard diminished. We can only hope 

 to see it maintained in the face of the competition of the world of a lower, 

 and. in fact, a lowering standard of living if we can eliminate every 

 possible waste that there is in American industry. 



I know of no way Ity whicli we can undertake tlie solution of these 

 collective questions of that character except by the co-operative organiza- 

 tion of the men in an industry ; that we cannot go on and hope to make 

 the progress that will maintain this standard of living in the face of the 

 competition, that we have in front of us. unless we can make some progress 

 in the coUectiw sense. So far as I know, the only way that we can hope for 

 it is through the -organization of associations that will take up the prob- 

 lems that are common to all : that gain inch by inch the efficiency and 

 stability that makes for national efficiency. 



*•**♦•• 



Rates proposed on box shooks from points in Virginia, Xorth and 

 South Carolina to destination in New York and other eastern states 

 were found not .iustified by the Interstate Commerce Commission. 



The suspended schedules were consequently ordered cancelled. 

 It was proposed to erase certain specific rates on box shooks and 

 substitute prevailing lumber rates. The schedules involved were 

 protested by the Shook Manufacturers' Association, the North Caro- 

 lina Pine Associ.ation and various shippers. 



Hardwood Sales Code Committee Begins 

 Its Labors 



The sales code committee of the National Hardwood Lumber 

 Association has actively begun its work of laying the foundation 

 for the sales code to be submitted to that organization at its next 

 annual meeting. 



The committee has held no formal meeting, but the members have 

 been in touch with each other and they have adopted the plan of 

 addressing a letter to about forty lumber clubs and other organiza- 

 tions identified with the hardwood lumber industry, requesting the 

 secretary of each to ascertain from his own members their views as 

 to "which should or should not enter into a sales code" and to 

 communicate to it the results of this canvass. 



The committee is very strongly of the conviction that all branches 

 of the hardwood industry engaged in buying or selling lumber in 

 wholesale quantities should be given an opportunity of expressing 

 their ideas as to what a sales code should really contain, and that 

 a sales code, to be practicable and effective, should express customs 

 and practices built up over a long series of years in the hardwood 

 industry. It is therefore taking this means of thoroughly canvass- 

 ing sentiment of those organizations believed liv it to be interested 

 in the sales code question. 



The committee is prepared to push this matter as rapidl.y as possi- 

 ble. It states that, if necessary, follow-up letters will be addressed 

 to :ill organizations w-hieh do not respond promptly. However, it 

 will not attempt formulation of the code until it knows pretty well, 

 froni the views received, what is really wanted. 



Karl Palmer of the Ferguson-Palmer Company, Inc., Memphis, is 

 chairman of the committee. The other members are: M. M, Wall, 

 J. H. Maassen, R. B. Goodman and Charles H. Barnaby. 



Mr. Palmer says that the committee will meet with the board of 

 managers of the National Hardwood Lumber Association at Chicago 

 in December or January and that further announcement in con- 

 nection with the sales code will probably be made. 



The committee realizes quite fully the responsibilities of the work 



