Excerpt from Trade Association Activities and the Law: A Discussion of the Legal and Economic Aspects of Collective Action Through Trade Organizations
Cooperation is the keystone of civilization. Power - order - progress, - civilization itself depend upon the ability of men to work together for the common good. Just as the maintenance of the State requires cooperative organization, so too is there a compelling necessity for unity of purpose and action in industry if the progress of American commerce and the national interests are to be forwarded. If unreasonable legal prohibitions make cooperation between competing groups in industry impossible, even though not hurtful to the public, the result will be to compel a process of merger, consolidation and ultimate monopoly with its dangerous social and economic effects. We can encourage a cooperative organization of industry, without endangering competition. Indeed the preservation of the competitive system depends in no small degree upon the ability of business men, particularly the smaller business men, to work out their larger problems through collective action.
Unfortunately, the wilful violation of the law by some associations has created a spirit of hostility and suspicion on the part of the general public toward any united action by business men. The achievements of our trade associations, redounding to the public good, have not been told. The strengthening of business ideals, the reduction of the wastes and frictions of trade, the increased efficiency in production and distribution, the vast savings to the public, all of which have resulted from the collective action of business men through their trade organizations, arc a closed book to the public. The great program of cooperation between industry and government, now being effected by the Department of Commerce, under the direction of Secretary Hoover, is just awakening a general interest and creating a realization of the importance of the effective organization of our industries, both in domestic and foreign trade.
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