Evening star., 1941-02-16
Identical Bidding
On Defense Work
Hit by Arnold
Big Increase Is Charged
In Testimony Before
Monopoly Committee

Inauguration of the vast national
defense program has been accom-
panied by a sharp increase in
identical bidding" for Government
contracts, Thurman Arnold, Assist
ant Attorney General in charge of
he Justice Departments antitrust
division, told the Federal Monopoly
Committee yesterday.
Mr.. Arnold, during his testimony,
argued the Supreme Court should
be asked to reverse some of its anti
trust decisions involving the Clay
ton and Sherman Antitrust Acts,
which, it is contended, have left
loopholes in these statutes,
Discussing the bidding issue, Mr..
Arnold said. complaints of ldenti-
cal bidding have increased by leaps
and bounds. I can't even guess how
many we get in day"
Cement Bids Cited.
Citing typical case, the Assistant
Attorney General said a recent
complaint involved an Army con-
tract for cement. Two identical bids
were received and rejected, he con-
tinued, and then another firm from
outside the territory offered much
lower bid.
The two original bidders wanted
to reopen bidding and promised even
lower bids. he added. They wanted
to show this outsider what they
would do to price-cutters. I can't
give the names or area now, but the
evidence seems convincing"
The Government, for the first
+ time, is attempting to collect
damages under the Sherman Act
from II tire concerns which are
alleged to have conspired to fix
collusive prices in tire contracts
during 1868. Triple damages
aggregating more than s1,000,000
are sought in the action, which is
scheduled for argument before the
Supreme Court. The Government
appealed after losing in the lower
courts, which held that the Govern
ment is not person" within the
meaning of the Sherman Act and
consequently could not collect. The
Supreme Court agreed in November
to review the litigation.
Loopholes in Laws Charged.
Mr.. Arnold proposed reconsidera-
ton by the Supreme Court of Cer-
tain antitrust decisions after w.
T. Kelley, chief counsel for the
Federal Trade Commission, told the
committee that, due to legal loop
holes, the laws had failed to prevent
concentration in many industries,
such as aluminium, automobile, meat
packing, cans, cement steel and
others.
He said that the court had gone
outside "the intent of Congress" in
Government actions against Stand
ard Oil. United States Steel and
International Harvester, and eX-
pressed the opinion that Congress
should revise the laws to make them
effective"
Mr.. Arnold interrupted to say that
many past decisions by the court
had been by a f1ve-to-four vote. and
"every effort should be made" to
get these points before the court
again.
Clayton Act Changes Urged.
Both witnesses agreed the Clayton
Act should be amended to prohibit
a corporation from acquiring "as-
sets" of competing corporation.
At present the act prohibits acquisi-
ton of stock control.
They also asked a statute requir-
ing that both the Justice Depart
ment and the Trade Commission be
notified in advance of any merger
of corporations which would affect
the national output of any indus
trial product.
Mr.. Kelley said if present con-
centrations continued, then Govern
ment control of prices might follow.
He said this would involve "dicta-
torial control lodged in officials" and
would not be compatible" with
r,o1itical freedom "