Imperial Valley press., 1941-07-03

WhoI1lN1 lON, July s - Cel-
tain sections of the government are
beginning to worry again about
what's happening to the small bus
mess man, and by small, they
don't necessarily mean small. The
units they fear for are the indie
pendents, the manufacturers who
aren't directly tied up with some
big chain or corporation, or who
can't get piece of the big corp
oration'S business through sub
contracting.
At a conference of field officers
OF che Defense Contract Service
held in Washington the other day,
Peter r. Nehemkis, Jr., one of the
OPM brass hats, went so far as to
say that 10 entire industries whose
supplies have been curtailed must
either close down or enter a new
line of production. For time, as
the wartime economy gains mo-
mentum, small businesses will be
hit to such an extent that unem-
ployment may actually 60 up and
tie number of idle machines ac-
tually increase, he said
MIR. NehemkiS has been picking
up dead cats ever since, for many
of the dollar-a-year men in the
Office of Production Management
don't think things are going to be
that bad, and they started throw
ing things at the colleague who
spoke out of turn. Nehemkis did
put the finger on the critical con-
clifton of companies making alumni
nun products, for instance, or the
companies doing nickel and chrome
plating With their material sup
plies cut off by defense work
they're up against it. Plants in the
New York City area have been
particularly inconvenienced this
way.
That is the predicament of the
small businesses squeezed out by
prioritieS, but there is another
angle that has attracted attention
of he Justice Department anti
trust division-the cases of small
businesses squeezed out by monop-
olistic competition from big bust
ness
BIG BOYS GOT THERE EARLY
Attention has already been called
to concentration of defense orders
placed with major manufacturing
companies. In the rush to get de-
fense started, it was perhaps nat
ural to turn to the companies with
the biggest plants. Also, if the ma
jor industrialists had the best Or
ganization to get the business, it
was natural for them to get the
orders. If, however, this combina-
tion of circumstances, plus mo-
nopoliStic practices, is used to
freeze the independent manufac-
turer out of the defense effort,
then the economic balance is
thrown out of gear
Thurman w. Arnold assistant
attorney general in charge of the
antitrust division, sees four dam
gers to the little man from such
a sct-up.
First, the system of prioriticS con-
troll may be used to prevent the
small manufacturer from getting
supplies.
Second. the small manufacturer
may not be allowed to share in the
national defense production. to the
detriment of both the little mar
and defense.
Third, the independents may be
caught by artificially fixed prices
and distribution costs as in tbs
recent Rocky Mountain regior
lumber and cement cases wher.
little men not belonging to thu
ring and following its policies coult
not get q foothold in business.
Fourth, the threats from big Ia
bora few Of the unions which
like big business combines, dictate
the amount of labor. materials ant
tools that the small businessman
must use.
GOOD MAN HARD TO FIND
1t Is to protect little business
from hardships like these that th,
antitrust division proposes to Sc