The Waterbury Democrat., 1937-11-05

been personally ordered by
 Prosecutions shortly will be launched against fourteen nanu- lecturers who submitted identi- bids to the Treasury. If present plans go through, these suits will be followed by another flock against a group of big newsprint producers.
 Basis of the action against the tire-makers is evidence obtained by Q willy stratagem of Robert Jackson, head of the Justice De- partment's Antitrust Division, and Herman Oliphant, chief counsel of the Treasury. The lat ter Department called for bids on a large order of tires and tubes. Fourteen were received, every one identical down to the last frac- ton of a cent.
 Jackson advised Oliphant to reject the bids on the ground of "cvidence of colluslon" and to ask for a new set.
 "We've got these firms over Q barrel" Jackson said. "Whatever they do they arc I'm hot water. If they submit identical bids again it will be . confirmation of their collusiOn. If they don't 1t will be . confession that they got together the first time and are scared"
 Oliphsnt followed Jackson's suggestion and new bids were called for. Again they were lden- tical down to the last decimal point. Jackson immediately started preparations for court action. .
 NOTE: Despite the solid front of the fourteen manufacturers, the government got the tires and tubes 1t wanted at Q much cheap. CT price. The Treasury called in the tire expert of Q large mail order firm, asked him what price he could offer. His figure was 26 per cent less, and he got the business.
 Reached for Repairs
 It was the President himself who ordered the Dollar Line to dock It's three different ships and equip them with fire prevention safeguards before again carrying passengers.
 Roosevelt issued his instructions after reading a WASHINGTON MERRY-GO.ROUND account of how "Unclc Dan" Roper's Com merce Department not only had exempted the company from in- stalling sprinkler systems, as re- quired by 6 new law, but had giv. on 1t an extension of time to put in less expense fire stops"-non- colnbustible cleats between floros and walls.
 The laws called for the in- stallatlom of sprinkler systems
 on '. s. passenger ships by October 1, 1887. Using . pro- vision in the act permitting ex. captions from this requirement "ln the case of . particular veS- sel", the Commerce Department secretly authorized the Dollar Line to substitute "flre stops" fin It's 10 President ships.
 The day after the President read the MERRY. .GO.ROUND disclosure, government inspectors received telegraphic orders to dock the vessels. one day later tho company asked the U. 6. Maritime Commission for e $l,000,000 loan to install the required equipment.
 The request precipitated hot row in the Commission. Com- missioner Edward Morgan vigor- ously opposed it because the cor1a- pany was in default on Sl4,000,000 already owed the government, urging that no more money be advanced until arrangements were made to ensure repayment of the overdue debt. After 6 two-hour argument. the Dollar Line pro. posal was vetoed by a S-2 vote. Bear Raiding
 SEC suspicious that "bear raid- ing" (short selling) played 8 leading role in the recent stock market crash have been fully confirmed by secret New York Stock Exchange report.
 The survey, made at the re- quest of the Commission, covered trading in five leading stocks for e period of three weeks. The SEQ suspected that "bears" were short- circuitlng prices, but when the Exchange report was received, officials were astounded.
 A 10 per cent proportion of total transactions would be an un- usually high short interest. But the report disclosed that short sales were 22.7 per cent of the total volume of trading in the five stocks. Tn one of them 1t ran over 30 per cent.
 When Commissioner Robert E. Healy examined the report he / exclaimed: Jumping Jupiterw