Trade Associations

by Emmett Hay Naylor '09, president American Trade Association Executives. Pp. xv, 389. New York: The Ronald Press Co., 1921.

One turns with a shock from the serene and idealistic pages of Mr. Naylor's book to the recitals of hard and sordid facts brought out by Mr. Untermeyer in the hearings before the Lockwood committee.

Can it be that these organizations, described by the author as tempering competition with just the right admixture of co-operation are the same as those which in such numbers are being revealed as secret price-fixers, gross profiteers, and stumbling-blocks in the way of decent and honorable business?

One fears that there can be no question about it, and one also fears that Mr. Naylor's words of gentle warning and mild reproof are not the remedies to meet the situation.

Far too large a percentage of existing associations have tasted the forbidden fruit of misuse of co-operative power, and it will be but a repetition of history if they learn their lesson by example rather than by precept.

Moreover, one is compelled to doubt the soundness of what appears to be Mr. Naylor's fundamental text, found as an italicized sentence in the chapter on "Competition and Cooperation." It is this: "Competition at all times should be based on quality and service and never on prices." To the first half of the assertion one may readily assent; but the addition of the rest lands even the author on the ground where he constantly feels the necessity for explanation and defense, if not apology; and this note is struck too many times throughout the book for the argument to be convincing. He attempts to prove too much.

Five chapters of the nineteen have an interest for the lay reader. Their content is sufficiently indicated by their titles: "The Trade Association"; "Historical Evolution"; 'Competition and Co-operation"; "Fair Prices"; "The Law and the Association."

The other fourteen make virtually a manual for a trade association secretary; and for this purpose the book is admirably adapted. It is full of practical hints and good advice on many a point which otherwise might have to be learned by experience. And it is fair to say also that, in spite of the author's somewhat over-enthusiastic position, the secretary who can steer his association along the course charted in this book will make its activities a benefit and not a burden to society.

Appendix A is a useful bibliography, giving evidence of the author's own wide research.

Appendix B is a summary of leading court cases, the value of which would be greatly increased if each one contained a short but careful statement of the material facts.

Appendix C devotes thirty-five pages to a list of trade associations in the United States. This seems rather unnecessary, as a government list of such associations is revised and published every three or four years by the Department of Commerce.

If included at all it would be much more convenient for reference if arranged by trade or industry, and not alphabetically.

In the modest words of the preface, Mr. Nay lor has blazed a trail through untrodden territory. He has surely made the path much easier for all who follow.

James P. Richardson