Evening star., 1939-12-08
Arnold Seeks $50 Men
To Help Consumers,
Enforce Trust Laws
Plan Would Make Buyers
Voice Effective, Protect
US. From War Disiocotion
BY ]. A. O'LEARY.

"A
sumer a more potent factor In en-
forcement of antitrust laws and
control of prices, by placing Gov
ernment agent in each State to
deal with economic problems, just
as agricultural county agents now
aid farmers throughout the country,
was laid before the Temporary Ma
tional Economic Committee today
by Assistant Attorney General
Thurman Arnold.
He proposed that a Nationwide
staff of $50 Federal economists and
lawyers be set up to enforce the
antitrust laws vigorously and thus
prevent the European war from
throwing this country's economy
out of gear.
The Arnold plan would require
an additional appropriation of not
more than $2,0O0,000 a year and
would make the Temporary Ma
tional Economic Committee a per-
manent agency to help solve busi-
ness problems not covered by exist
ing antitrust laws.
The committee, of which Mr.
Arnold is member, has been
directed by President Roosevelt to
study possible results of the war
on this country and make sugges-
tons The group represents both
congressional branches, and its
chairman is Senator OMahoney,
Democrat, of Wyoming.
No Real Price Law Possible.
At the outset of his testimony
Mr.. Arnold, who heads the anti
trust division of the Justice De-
partment, said it is apparent from
the testimony given before this
committee that no drastic and far
reaching price legislation is within
the realm of possibility today"
There is no evidence, he added that
"any drastic, long-term plan for
regulation in this field would re-
ceive any substantial public sup
port"
Starting, instead, on the theory
that the American people believe
in a competitive system based on
maximum opportunity for free enter
price, Mr.. Arnold presented his plan
as one designed to maintain such
system under existing laws. 1t is
plan, he said, which could be started
within week without further legis-
lation, provided sufficient funds and
personnel were available" Since
added funds would be needed, how
ever, the plan will have to run the
gantlet Of congressional considera-
ton.
One of the principal objectives of
his plan, he said, is to make the
voice Of consumers an effective force
as a counter-balance against pres
sure groups" Described as a pro-
posal for dealing with "unjustif1ed
price increases" Mr.. Arnold's pro-
gram would include the following
steps:
The Program.
!. Immediate employment by the
Antitrust Division of so qualified
men, to be stationed at strategic
points throughout the country, ito
head up the investigation of con-
sumers' complaints and promote CO.
operation with consumer groups" !"
They would be lawyer-economist
and become fully acquainted with
the trade, labor and consumer Or
ganiZatlons in their respective
States. They would act as clearing
houses for complaints from consum-
ers and business men,"
2. Provision for 100 additional men
to support and assist the smaller
group of State supervisors.
3. Permanent status for the Tenn
porary National Economic Commit
tee, with the announcement that
this would be "the proper tribunal
before which to present matters
where hearings are sought not
strictly pertaining to law violations
and also when it IS desired to have
consideration given to amending
present laws to deal with particular
industrial problems"
4. Establishment somewhere in
the Government of bureau of in
dustrial economics Ito furnish in
objective survey of the facts of any
industry for the benefit of the
agencies which deal with the anti
trust laws"
Cost, $4,000. 900.
The total annual appropriation
Tor all these activities for the Anti
Trust Division and the T. N. E. c. as
permanent body would not exceed
$2,000,000," Mr.. Arnold testified.
That sum, OF course, is in addition
to the present appropriation allo-
Gated to the Antitrust Division.
We are about to spend nearly bill
lion dollars year on armaments
alone. The type of organization
outlined herein would permit effec-
tive control, within reasonable
limits, of prices and save millions
annually to consumers"
Under this setup, complaints in
volving clear violations of law would
90 direct to grand jury. Where
complaints indicate situations in
which the antitrust laws appear
inadequate, they would be referred
to the T. N. E. G. Complaints in
volving intrastate commerce would
be referred to appropriate local
officials.
Mr.. Arnold suggested that con-
dltlonS that have created the COM
plant should be discussed wherever
possible with the business organi-
cation concerned, with a view to
removing the source of the COM
plant
What the organization I have
outlined will do is to re-establish
consumer sovereignty in this coun-