The Washington times., 1938-12-27
Behind the News By Paul D1allon

The brilliant young Yale Lap
professor, Thurman W. ArnoL6
(he'S ~, IDho came dot07t mere
nine months ago and started
doing amazing things tDith the
antitrust I0iD, explains his
current UorEin0 theory tn the
followino guest column. In its
effects It Is a highly important
and revealing public document,
submitted heretctth in accord
unce tDith this columns policy
of occasionally presenting otIlef
UietDpointS IDhich may be tn con-
Hict tDith its o1D71, as q matter
of fairness. and possibly also OF
Teliet to readers as nell as to
this writer during a brief
respite.
By THURMAN ARNOLD
Asn,stant Attorney General in Charge
- Of Antitrust Division
lworld copyright, 1888. by King Fea-
ttires Syndicate: inc. All rights reserved.
, Reproduction in full or in part strictly
prohibited.)
WHEN Paul Mallon offered me
w q chance to use his column
to explain, briefly, the purpose
of antitrust enforcement, I &C
cepted on the spot. The oppor-
tunity appealed to me particu-
larly, because it is my job to
enforce a Federal law, which
after nearly half a century OF
nonenforcement, Is subject to
bizarre misunderstanding.
Some businessmen seem to
think that the Sherman Act was
passed in memory Of Sherman's
march to the Sea-to create
ruin and deSolation by break
ing up big concerns and little
ones for the mere job Of trust
busting. Other businessmen
have gotten Into the habit OF
ignoring the act entirely, on the
theory that it is all right to
"gang UP" and eliminate COM
petitors provided you call them
"chiselers." This has gone on
90 long that our entire system
Of free enterprise Is in danger.
Antitrust enforc e m ent Is
usually associated with large en-
terprises, but the danger is not
confined to big business. Every
small town is today creating its
little association after the Euro
pean fashion to stabilize" dis
tribution and eliminate uncom-
Portable competition. These as
sociationS form habits and ideas
opposed to new enterprises
which lower prices.
Merchants try to tax chain
stores out Of existence. Con-
tractors "clear" their construc-
ton contracts through central
agencies; doctors enter into
agreements to sabotage group
health plans: trade associations
get us system of ethics which
make it immoral to compete;
owners Of patents refuse to IL
cense competitors. It's all part
Of the same vicious circle which
makes for inefficiency in the
distribution Of goods. Log jams
and toll bridges are clogging
our system Of distribution.
In Terms of Income
THE fact this system is not
i distributing the goods we
can produce is clear from any
angle you look at it. Look at
It in terms Of income. Only 81
per cent Of the American fami-
lies have incomes Of more than
5000. Two-thirds get less than
$500 a year. Look at it in
terms Of production. The con-
servative Brookings Institute
figures that in a ten.year period
we might have produced 248
billion dollars more goods than
we did produce. That Is $4,000
q family-more than 80 per
cent Of them could save in a
lifetime. This Is a dangerous
kind Of waste. because it pre-
sentS to the two-thirdS of our
families under 800 the s~"c-
tacle Of goods being withheld
from them for no understand
able reason.
What have the antitrust laws