Evening star., 1941-04-30
Jackson Clarifies
Antitrust Policies
On Defense Output
Effect of Enforcement
On Arms Industry
Is Explained to o. P. M.

Industry today had an outline
OF the policies to be pursued by the
Justice Department in enforcing
the antitrust laws in so far as they
touch on regulation of production
In the interest of the national de
Tense program.
These principles were set out by
Attorney General Jackson late yes
tArday in letters sent to John Lord
OBrien, general counsel for the
ONCE of Production Management.
and Leon Henderson, administrator
Of the Office of Price Administra-
kon and Civilian Supply.
The Attorney General repeated
The view expressed in q statement
last week that some splitting-up of
orders among many companies and
production curtallment would be
necessary 10 assist the defense effort.
Private Advantage Cited.
"Some OF these acts if accom-
phshed by private contract or ar
rangement within an industry and
carried on for private advantage
he said in his letter, would prob
ably constitute violations of the
antitrust laws.
On the other hand it is obvious
that in the present emergency acts
performed by industry under the
direction of public authority. and
designed to promote public interest
and not to achieve private ends. do
not constitute violations OF the anti
trust laws
IN these circumstances. the De-
partment Of Justice recognizes that
business interests which are asked
to comply with public plans for IN
creasIng production and preventing
imitation are entitled to the CO.
operation OF agencies Of the Gov
ernment in eliminating any un-
certanties which may exist as 10
the application OF the antitrust
laws to their activities
Jackson Explains Setup.
M. Jackson outlined these points:
!. II VIII not be illegal for repre-
eentatIyeS of industry 10 meet with
representatives OF O. P M. and
Q. p. A C S and industrial COM
mittees may be formed at the re-
quest Of either agency 10 work with
the industry. The industry may CO.
operate in selecting members for
committees
2. The question OF need for such
q committee the manner Of select
Ing it and its membership will be
the sole responsibility Of o. P. NJ. or
Q. P. A. c. S The Justice Depart
ment will not participate in those
decisions beyond suggesting that
any such committee should be gen.
orally representative of the entire
industry.
3 No industry may undertake TO
determine policies for the industry
or attempt TO compel any one to
comply with any request or order
made by a public authority. Each
industry must conflne itself to col /
lecting and analyzing information /
and making recommendations to I
Q. p. NJ. or o. P. A. c. S.
Authority From o. P. NJ.
I. ANY request for action by an
industry unit must come from the
o. p. NJ. or o. P. A. c. S. This is .
to make certain. the letter set forth. +
that the function of determining
what steps should be taken in the
public interest should in each case .
be exercised by the public authority
which NAV seek the individual or
collective advice OF the industry
But the determination shall not be
made bv the industry itself
8. Requests for action within
particular industry such as alloca- .
tion of orders, may be made only
after the general character Of tie
action has been cleared with the
Justice Department If the depart
ment approves the general plan,
requests for specific action under
that plan may be approved by the
general counsel of either o, P NJ.
or o. P. A. c. s. and need not be
submitted to the department. This ,
particular arrangement is subject
to revocation. however, if the per-
sonnel in either agency is changed.
Acts in Good Faith Immune.
6. The Justice Department agrees .
not to prosecute acts performed
in good faith and within the fair
intendment Of Instructions from
o. P. M. or o. P. A. c. S.
The Government will keep strict
control of any arrangements made
within an industry for redistribu-
ton Of orders or the operation Of
any other phases of the program,
and the Attorney General empha-
sized that the department re-
serves complete freedom to insti-
tute civil actions to enjoin the
continuing Of acts or practices
found not to be in the public inter-
est and persisted in after notice to
desiStr