ABSTRACT

THE rapid development of trade associations during the last forty years might easily suggest that this movement was merely a continuation of the development of cartels and trusts in British industry. We have already mentioned the fact that trade associations-though not those with which we are mainly concerned-might quite naturally emerge from the desire of industrial monopolies or dominant concerns to have their own sales organisation and that such sales organisations might again resort to trade practices similar to those of trade associations proper. Moreover, as we shall describe later in detail, the trade association movement might well be used by some industrial combines as a welcome and effective means to complete their monopolist domination. The Report on Restraint of Trade concluded its " general conclusions" with the ominous words: 1

There is certainly reason enough to see a strong connection between these developments. But nevertheless it would be wrong to assume that trade associations owe their existence merely to the strong development of industrial combination and the desire of industrial monopolists to close the gap by creating or assisting monopoly in the retail trade. Such an assumption would be wholly misleading. Trade associations were in existence, as this chapter will show, before the advent of the modern and recent movement of industrial combination, as represented by cartels and trusts. This assuredly means that there are conditions in certain trades which, quite apart from any mono-

polist movement in the industry from which they derive their merchandise, tend to lead to associations of a restrictive character. It is in this sense that the history of trade associations is of such vital scientific importance.