he impose a burden upon interstate commerce, there- .
fore he is not subject to Federal regulation. ·
In a hardwood lumber case (Mississippi Valley Hard- °
wood Company, Inc., vQ McClanahan, United States ‘
Attorney et al.) the Federal District Court enjoined
the United States District Attorney from enforcing the
price fixing provisions of the code on the ground that The
no authority for price fixing exists in the law. The
Court held that while the Act authorizes the formula- ·
tion of codes of fair competition, the definitions of N · R
"fair competition" do not include price fixing. In a atlonal QCQVGTY
lumber case in a different judicial district a similar
ruling was given. _ _ _
In another lumber case (United States v._ McGraw- I Adynlnlstraugn
Curran et al.) the Federal District Judge in denying
an injunction restraining violation of code price provi-
sions stated that mere underselling of competitors is "
not unfair competition. No proof was given that the _
sales price was below the cost of production and noth- 4
ing in the National Industrial Recovery Act indicates, I
the Court held, that a specific price should be set as
the cost of production throughout large areas of the I ¢ ¢ <>
country. ,
Production control is involved in a number of cases [
considered by the Federal courts. In addition to the »
oil cases to which reference has already been made,
the Lumber, Silk Textile, Rayon Silk Dyeing, Printing,
Hosiery, Underwear and Allied Products, Ice and Co-t-
ton Textile codes account for other court cases affect- V _ _
jog production control- A Review of its Past and Recom-
In the litigation that has arisen concerning the trade · ·
practice provisions of codes many cases have related to mendatlons for Its Future
regulations in the Motor Vehicle Retail Code. These
regulations primarily concern trade-in allowances for
used cars and accurate mileage records. Provisions of
the Petroleum Code prohibiting the giving of premiums
with sales of gasoline were the cause of several cases.
The Funeral Supply, Retail, Brewing, Commercial and ·
Breeder Hatchery, Silk Textile and Millinery codes
account for other trade practice cases in the courts.
There are several instances where decisions have ° ° °
been rendered adverse to the enforcement of trade
practice provisions. In two cases relating to petro-
leum code restrictions on premiums the Court held
that it was a regulation of intrastate commerce.
The American Liberty League expects to submit ad-
ditional comments of a specific character after the
administration offers its recommendations for legisla- ( AMERICAN LIBERTY LEAGUE
tion. The declaration by S. Clay Williams, Chairman N . 1 H d
of the National Industrial Recovery Board, in an ad- atmna ea quarters
dress January 17, that any extension of the Act should National Press Building
be for "a further trial period of from one to two years" WASHINGTON_D_ C_
rather than as permanent law is a favorable indication
of the trend within the present governing body.
Document No. 11 ‘
January, 1935
[ 24] $3