Evening star., 1939-10-08

Antitrust Lows Used
To Form Procedure in
d. c. ond Elsewhere
HACKGROUND-
q Complaints against price increases
since start OF European Ddr hare
flooded Department OF Justice.
administration leaders insist there
is no shortage OF supplies, pdrticn-
1drly food. President Roosevelt
called on Monopoly Committee to
sbe part OF our first line of de-
Jense against ugly and inhuman
greed"
& program to investigate price in
creases here and elsewhere are be-
Ing taken by the Department of JUS
tee, it was disclosed last night, with
prospects of using the antitrust
laws for prevention of profiteering,
Thurman Arnold, Assistant Attor-
Y1ey General, in a letter to the Dis
txict of Columbia Consumers Con-
ference on Price Rises and Profiteer-
ing explained progress now under
way by the department IN co-opera-
ton with other agencies.
: He asked particularly for any evi-
dence tending to show that recent
price increases in the District of
Columbia resulted from concerted
action, which might fall under juris-
diction of the Federal antitrust laws.
""At the present time" he wrote,
ethere is no general Federal statute
specifically prohibiting price prof
Neering. since the Lever Act, a
statute of this character which was
enacted during the last war, is no
longer in force.
Where profiteering violates the
Federal antitrust laws. effective &C
ton is possible. The Department of
Justice Is now formulating a pro-
gram to investigate price increases
in cooperation with other Govern
ment agencies, State authorities and
consumer organizations This pro-
gram will be put into operation as
quickly as time and personnel
permit
Follows Other Developments.
: Mr.. Arnolds letter followed other
recent developments pointing to-
ward Government action against
proflteering.
President Roosevelt late last week
called on the Monopoly Committee
known officially as the Temporary
National Economy Committee, to be
. watchdog against profiteering.
Attorney General Murphy at a
press conference recently indicated
the department was making a spe-
cial study of possible anti-profiteer-
ing legislation, which might be used
to meet an emergency. He indicated
at that time, however. that it was
not ready as yet to be introduced in
Congress.
: The President, in calling on the
Monopoly Committee for help in
the profiteering problem, wrote to
Chairman OMahoney that this
group was well qualified to invoke
the forceful check of impartial in
Quiry on this kind of un-American
activity
Senator OMahoney indicated he
would have his committee outline
methods of bringing its previous
study Of price structure up to date
Giving assurance that the commit
tee would not attempt to interfere
with normal price fluctuations, es-
pecially those brought about by in
creased wartime demand for agricul-
tural products, Senator OMahoney
said the committee would interest IT
self only in ''unwarranted and un-
justified" price increases.
Fears Upset in Economy.
The President in his letter had
said that the experiences following
1914 showed Dangerous dslocations
In the American economic setup
might occur as the result of prof.
teering during European war.
AL of U.s., he wrote, "of course
want to see producers, middlemen
and retailers receive fair prices for
what they sell. and all of us recog-
Ilize that in certain fields such fair
prices are probably as yet not being
received.
But none of us want to see the
cost of living unjustif1ably increased
or prices become unreasonably high
as to interfere with our national
defense"
\ Mr. Arnold's letter to the Con-
aumers' Conference here was in re-
ply to letters of complaints written
by the conference to both President
Roosevelt and Attorney General
Murphy concerning conditions in the
District of Columbia. The COM
plants charged that there were un-
warranted price increases here. The
conference insisted that the inter-
ests OF consumers should be con-
Adered and that steps should be
taken, ii necessary, to re-enact legis-
Atlon such as was in force during
the World War.
The letters to President Roosevelt
and Attorney General Murphy had
been signed by Mrs. Mary ".
Daugherty, temporary conference
secretary, who received in reply the
letter signed by Thurman Arnold,
Who is assistant attorney general in
charge of antitrust prosecutions.
President of the Consumers Con-
ference is Samuel Schmerler Of the
Mount Pleasant Citizens Associa-
ton.
- The citizens conference previously
had asked Commissioner Melvin c..
Hazen to authorize an Investigation
q increased prices here, under au-
thority OF the statute creating the
District Department of Weights,
Measures and Markets.
THE Commissioners had exnrascad