The Wilmington morning star., 1940-07-21
Bruce Cations
In Washington
(Star-News Washington Correspondent

WASHINGTON-Despite a strong crop of ru-
mors, there is as yet no sign the administra-
ton will relax the antitrust laws to speed up
production of goods for the defense program.
On the contrary, a federal grand jury in New
York is just starting a broad investigation into
the production of some items most vital to the
army and navy program.
The rumors come mosly from a feeling that
industries in the defense program may have to
form combinations which might later be prose-
cuted under the antitrust laws. The famous
Madison oil case is cited: there the oil men
claimed they were only doing what the govern.
ment had urged them to do under MIRA. 1t is
beginning to be argued in some quarters that
the antitrust laws operate as a business de.
terrent" for oil defense production.
SO Tar no administration pressure has been
put on Attorney General Jackson or Assistant
Attorney General Arnold, who heads the anti
trust division. Arnold some weeks ago defined
the divisions stand; national defense needs
are paramount, and there'n be no antitrust
prosecution for any combination which either
the War or Navy Department states in advance
IS necessary to meet those needs. To date, nei-
Their department has filed any such statement.
To which you might add that no group which
is unable to get such a declaration from army
or navy chiefs is likely to get any favors from
the antitrust division. Arnold is going right
ahead; he won't pull his punches, and he won't
resign. 1t the administration decides to restore
the NRA system unofficially, it will have to fire
him . and in an election year it isn't likely
to do anything of the kind.
LOSES HELP OF OMEN
Meanwhile, despite a shortage of funds, the
antitrust division is going ahead with plans for
a broad investigation into food distribution
costs. 1t has preliminary inquiries under way
IN New York, Chicago and Philadelphia, and
II Arnold can solve the problem of lack of
personnel he hopes to put on a show as specta-
cular and far-reaching as his famous building
costs investigation.
His chief handicap right now is the espionage
and fifth column scare. He had been getting i'm
portant help from agents of the Federal Bur-
eau OF Investigations; lately, however, J. Edgar
Hoover has had to call most of his Omen back
and put them onto anti-spy work. Result is that
the antitrust division is Woefully short-handed;
its New York food costs study, for instance, is
currently being carried on by two men,
DIET" ON THE WAY?
Arnold maintains that unless food costs can
be brought down the nation is likely to find
itself on something resembling a German
Diet before long. He talks of 'breaking the
log jam between the farm and the table, and
wants a grand jury study of all of the restraints
between farmer and consumer.
The farmers share of the consumers dollar.
he asserts, has dropped from so per cent to
30 per cent. Milk for which the farmer gets
from 8 to 5 cents; the consumers dollars
worth of potatoes may have brought the farmer
only 30 cents, his dollars worth of fruit NAV
have netted the farmer a quarter, and the meat
for which he pays 30 or 40 cents a pound may
have meant but 5 or 6 cents a pound tn the
farmer. d