New Britain herald., 1928-03-31
RETAL|A70RY BILL IS BEFORE HOUSE
Newton Measure Would Permit
 Buying Pools

Washlngt on, March 31 H-The Newton bill to permit American i'm porters to form buying pools in an effort to combat foreign trade mon- opolies today had the right of way in the house with leaders prepared to press for final vote before night adjournment.
 Carrying the approval Of . ma iority of the house judiciary com- mittee, the bill admittedly is directed at the alleged British rubber mon- opoly and also at monopolies by other foreign nations in Potash and Sisa.
 Enactment of the measure has been recommended by Secretary Hoover, Louis J. Tabor of the Ma. tional Grange, and host Of automo- bile and tire manufacturers. It was opposed in committee, however. by three members, LaGuardis, q New York republican, and Dominick, Of South Carolina, and Bowling of Ala hama, both democrats.
 The measure would amend the Webb act to permit the i formation of such pools, but would not change provisions of this law with reference to export trade as- socia,ions.
 The legislation Is designed to meet an acute situation affecting the import trade of the country" Representative Dyer of Missouri, ranking republican on the commit. tee. said in reporting the measure.
 The report declared that during the last five years the country has witnessed the development, by certain foreign nations. Of govern ment control and operated monepo. lies dealing in products. notably rubber. potash and sisai, for which this country depends largely, and in some instances wholly. upon i'm, portations for its supply" Whatever may have been their purpose. the net result has been greatly to increase the prices of the products monopolized to the Ameri- can importer" the report continued 'The committee, and those most familiar with the subject. feel that the best method of meeting these alien government combinations is to allow American buyers of the mo- nopolized products to combine for the purpose of importing them. thus concentrating our purchasing power and putting us on an even footing with those marketing their products in this manner. and what Is more important, such associations will re- move the element of competitive tidding by American consumers who, by bidding against each other, in their effort to secure the mo- nopolized products. have forced prices to higher levels than were even contemplated by those forming the alien combinations"
 The three members opposing the measure, in a minority report. argued it would create the opportunity for absolute monopoly and control of any raw material purchased by com- binations. associations, or pure hasing paols."
 Tt will tend 10 result in enhanced prices" they said. "The cost of purchase. overhead, managerial costA and return on capital invested, are all items going into the price of the commodity, all in the absolute keep ing of the purchasing combination, and the price clause in the bill would be of small practical protection to the consumer.
 "The purchasing of raw materials for large manufacturers within the combine would leave the small man. ufacturer at the mercy of the com binatiOn and would discourage due enterprise in the manufacture of articles requiring such raw mate- rial"