Evening star., 1942-01-19
Probers Will Study
Charge Of Restraints
Impeding War Effort
House Committee Will
Hear Arnold Wednesday
At Executive Session
By ], A. FOX.

The House Small Business Com
mittee decided today to dig into
restraints In industry that yeputedly
have impeded the war program,
after Thurman Arnold. Assistant At
torney General in charge Of the
Antitrust Division of the Justice
Department repeated charges he fire.
quently has made that certain in
dustries have controlled production
of vital materials to streng then their
own position.
A witness at the committee hear
ing on the effect Of the war program
on small business, Mr.. Arnold asked
to be excused from testifying pub
licly on steps his division Is plan
ming to combat the alleged re-
straints. The committee consequent
ly decided to hear him in executive
session Wednesday. At that time
he said he would explain what the
division Is doing, and the committee
could shape its program accordingly
To this, Chairman Patman agreed
Asked directly by Representative
Fitzgerald, Democrat, Of Connecti-
cut II he believed the business
practices Of which he complains
have interferred with Americas war
effort, Mr.. Arnold said that he felt
such activities were "the bases of
the whole lack Of preparedness OF
all the democracies."
Disturbed by Chargea.
Mr.. Fitzgerald said he was great
ly disturbed by the Arnold charges
when he saw them in the annual
report Of the Department of JUS
tice, and that he does not believe
the people realize what Is going
on" He suggested that what Is
needed as a corrective Is to get
about 100 machine guns and shoot
down about q thousand" Of those
responsible.
Mr.. Arnold explained the opera
tions Of the small business section
Of the department which, he said
was designed to keep little concerns
from being frozen out by large
competitors. He told of one cas<
where q group Of chemical and druf
concerns had combined to prevent
. new rival from getting needed
materials, and that the interven.
ton of the Justice Department
group was necessary to clear up thu
situation.
| Mr.. Arnold said the small busines
unit OF the department did not at
tempt to shape policy, but referret
the results Of its investigations II
the o. p. M.
Temptations Created.
He said many kinds Of con
spiracies are developing today" AM
that Government price fixing Is ere
ating temptations for q new kind O
conspiracy" namely for businessmen
to get together on prices. He agreed
however, that the conferenc,
method Of fixing prices is about tn,
only way open. He said In price fix
ing ceilings tend to become floors.
In urging that the committee hea,
the Antitrust Division plans In ex'
ecutive session, Mr.. Arnold sait
he didn't want premature publicity
because I don't want about so con.
Germs coming down here before we'r,
ready to see them," explaining tina
the announcement Of proposed in
vestigations would be certain u
bring those interested to the Justice
Department.
He said that about ITS inquire
were in various stages, but did no
specify II these constituted all tn
activities Of the division, or onl.
those concerned with defense.
In the general discussion Of Gov
ernment contracts, Representative
Kelly, Democrat. Of Illinois, said dis
elimination had been practiced II
the War Department, and that 80
cial contacts" were responsible 70
large concerns getting awards.