TRADE ASSOCIATIONS. Associations of men engaged in manufacture or trade, for the furtherance or protection of their mutual interests. In England these associations the nineteenth century. In the United States some were founded before 1850; by 1890 they had been formed in most well-established industries; while during the last decade of the century they had spread to almost every subdivision of the industrial world. In general, the trade associa tion may include one or more of three classes of functions, the commercial. the industrial, and the protective. Associations to do the work of busi ness agencies display most clearly the commer cial function. The London Association of Guar dians for the Protection of Trade was established as far back as 1776. The operation of the earlier societies was confined chiefly to the compilations of registers of bankruptcies. insolvencies. and Private settlements with creditors. Societies may undertake investigations into the circumstances connected with a bankruptcy, and perform the general agency business of their members. More recently added features are in connection with credit. Although large commercial concerns fur nish general information, there is still room for developing information bureaus within sonic trades. Many establishments have special credit men, who have formed a national association, with branches in thirty-five chief cities of the States.
The general industrial functions of trade asso ciations include first, the surveillance of impor tant influences, such as legislation or railway rates, which affect the entire trade. With many associations the tariff question is a weighty and permanent issue, while laws affecting labor, the quality, the method of sale, or the inspection of goods (as in brewing or boiler-making), are constantly watched, advocated, or contested. In the second place. associations may seek to establish agreement in business methods to keep their members informed of new inventions or processes, of market conditions. and so on. A natural result of this activity is the pub lication of a trade journal. of which the Bulletin of the National Association of NVool Manufac turers (formed in 1864) is a well-known ex ample. Various special functions, also, arc often assumed. This provision may be made for ex hibits at fairs, trade schools may be encouraged, selling agencies established, bureaus of employ ment maintained, local improvements furthered, or, as in the lumber business, a system of mutual insurance may be attempted. A very important
function is the promotion of social intercourse and general good will. It is not always easy to draw a sharp line between the acts of a trade association and those of a trade combination in which the financial management has been central ized. At present the typical forms of protection are: (1) against introduction of so-called unfair methods within the trade; (2) against railroad discrimination in rates: and (3) against labor organizations. Jobbers' and retailers' associa tions protest against sales direct from manu facturer to consumer, and sometimes establish a boycott against recalcitrant manufacturers. The decreasing importance of the jobber in the distributive system makes the efforts of their associations of particular interest. 'Exclusive agreements' may be made by a middlemen's association with certain manufacturers. in which case no other but the latter's goods will be used. The object of certain associations, in their own words, is "to help the manufacturer decide who are legitimate dealers." In trades where freight forms an important 'ten: of cost, a prime object of the association is likely to be the adjustment of railroad rates. The National Association of Stove Manufactur ers and the National Transportation Association. an organization of shippers. are examples. In 1903 the Georgia Sawmill Association took the radical move of disregarding the possibility of an appeal to the Interstate Commerce Commis sion and themselves asked for an injunction re straining certain Southern railroads from advanc ing rates on yellow pine. They asked that the Southern Freight Association be declared an illegal combination in restraint of trade. In creased demands of labor organizations, in recent years, have greatly stimulated defensive action by trade associations. In the building trades of New York. the Employers' Association was en gaged during 1903 in a bitter war with the unions, while in Chicago employers and em ployees of the same group of industries ap parently passed the stage of fighting, and settled trade matters by agreement between their respec tive associations, a procedure not always to the advantage of the public.