Lumber Industry Joins in Case "Blu" Book" Report for January lnterpreting Anti-Trust

Laws

Interpretation of Anti-Trust Laws Involved Regarditrg Use of a Common Selling Agency Important to Lumber Industry.

Washington, Feb. 10,-The National Lumber Manufacturers Association through Wilson Compton has joined with the glass and cotton textile industries, through Walker D. Hines and Goldthwaite M. Dorr, of counsel in filing a brief with the U. S. Supreme Court, as "friend of the court", in the Appalachian Coals case. This action, involving a suit brought by the United States against'certain coal producers agreeing to a common marketing plan and alleging violation of the anti-trust laws, is now on appeal to the Supreme Court from the Circuit Court of Appeals, which sustained the government. The appeal is being heard by the Supreme Cour.t todaY.

The outcome of this case is being closely watched by industry generally, because the decision of the Supreme Court will determine whether it is lawful for industrial concerns to endeavor to maintain a stable and orderly conclition in industry, by common action through the utilization of a group selling agency.

The brief filed by the three industries jointly points out that not every form of concerted action among competitors is unlawful per se by reason of being inconsistent rn'ith the maintenance of free competition. In determining whether concerted action is or is not lawful, consideration should be given to the characteristics which make for effective functioning of the competitive system which it is the object of the statute to safeguard, and then it must be determined whether the concerted action involved in tl-re case is inconsistent with this object.

The brief also makes the following points:

1. The prohibitions of the anti-trust la'iv against restraint of trade and monopoly have for their purpose to secure the protection o{ both buyer and seller by maintaining competition.

2. It is essential to this purpose that there be active competition among buyers and active competition among sellers. The system fails when a reasonable balance of such active competition is lost or destroyed.

3. Causes outside of the competitive circle, such as great shortage or over-capacity may operate to destroy this reasonable balance as much as artificial monopoly among buyers or sellers.

4. A concerted effort among a group of competitors, whether buyers or sellers, which will prevent or mitigate the efiects of a breakdown in the reasonable balance of competition is the very opPosite in character and result from con.certed action designed to cause such breakdown.

5. In the Appala'chian Coals case the Circuit Court should have measured the effect of the Appalachian Coals Company by reference to conditions of competition within the coal industry. It should then have determined whether the concerted action produced effects consistent or inconsistent with the objectives of the anti-trust law.

6. A concert of action among competitors for the purpose

Chicago, Feb. l7.-Business Lumbermen's Blue Book. Inc., ary are as follows: 1933

Bankruptcies Receiverships

Extensicins Requested Creditors' Committees Appointed

3 Composition Settlements

7 Assignments troubles reported to the during the month of JanuL932

Bankruptcies Receiverships

Extensions Requested Creditors Committees Appointed

4 Composition Settlements

8 Assignments

There was a marked decrease in inquiries for special credit reports this month in comparison with January, 1932.

The volume of claims placed for collection this month rvas not quite as large as the same month last year. There was no substantial difference in the average amount per claim. Collections are moie difficult than in January,1932.

H. H. Miller

Henry Homer Miller, well known Southern California lumberman and owner of the San Diego Hardwood Co., died at his home in San Diego on Monday, February 20. He had resided in San Diego for about fifteen years. Funeral services were held in Bonham Brothers' chapel on Friday, February 24 and were conducted by San Diego Lodge No. 168, B. P. O. E. IIe was 47 years old.

He was also a member of Southwest Lodge No. 283, F. & A. M. and a past patron of Southwest Chapter No. 345, O. E. S. I{e is survived by his wife, Catherine M. Miller, a sister, Mrs. Della Borin of Eugene, Ore., and trvo brothers, Frank and Will Miller, of Garrett, Ind.

of creating new competitive unit by combining only their marketing functions, while preserving their individual initiative in production should not be held unlawful, where concerted action based on a combination of both marketing and producing facilities would be lawful. I

7. If these ,coal companies could have merged all their properties and activities without violating the anti-monopoly section of the law, reasonably they should be enabled lawfully to combine merely their sales. There should not be one principle of law against monopoly and another and harsher principle of law against mere restraint of competition-especially,clearly destructive competition.

Mr. Compton after the hearing before the Supreme Court today stated that no one, of course, can forecast the Court's decision; that the outcome depends on the Court's view of the extent to which the exact words of the statute m'ay be flexibly applied to the changing economic facts while still conserving fundamental purpose of the anti-trust laws, namely, public protection; and that the decision, whether favorable or adverse, will be valuable. If favorable it will indicate important opportunities for cooperation in marketi.tg.If adverse it will plainly show that the relief from the unnecessary burdens imposed by the existing law must be secured not in the courts under present law, but in Congress through new legislation.