Evening star., 1942-03-29
j. ). Will Defer
Trust Suits That
Slow War Effort
Nothing Must Impede
Arms Production,
Roosevelt Says
fTeTts of memorandum and
letter on Page ABB
BY JOHN C. HENRY.


The Federal Government has
decided to defer for the wars
duration investigations or prose-
cutionS under the antitrust sta
tuteS whenever it is determined
that litigation would interfere
with war production.
This decision has been trans
lated into program agreed on by
Attorney General Biddle, Secretary
of War Stimson, Secretary of the
Navy Knox and Assistant Attorney
General Thurman Arnold, in charge
OF the Justice Departments Anti
trust Division, to be applied in those
cases where violation of the monop-
oily laws is indicated.
In a letter approving the plan,
released by the White House last
night, President Roosevelt struck
the keynote of the reasoning under
lying the decision, when he wrote
that the war effort must come
first and everything else muct
wait =. Unless that effort is
successful, the antitrust laws, as
indeed all American institutions,
will become quite academic"
Loss of Executives Time Cited,
A memorandum dated March 20
from the four departmental off,
cials to the President disclosed that
there has been consideration of the
loss of time by corporation execu-
tives and employees involved in anti
trust cases, and where such inter-
ference affects companies engaged
in war production, the memoran-
dunn continues, it should be elm
mated as quickly as possible.
1t was agreed, therefore, that all
pending and future cases under the
trust statutes should be examined
by the Attorney General, the Sec
retary of War and the Secretary of
the Navy. If agreement is reached
that no interference is threatened
to "al-out prosecution of the war"
the Attorney General is to proceed
with customary legal action.
If, however, there is agreement
that there would be interference
with war production through con-
tinuance of legal action, or if either
the War or Navy Departments
should hold the opinion that such
action would seriously interfere
with the war effort" the Attorney
General will defer investigation or
prosecution.
The head of the Justice Depart
ment is given the privilege of laying
all the facts in and disputed instance
before President Roosevelt for final
determination. In each case con-
sidered under this formula it is
further agreed that the action final
ly taken will be made public.
Agreements Basis Clarified.
In establishing the basis for the
procedure formula, the officials
agreed: First. that no violator of the
statutes shall escape ultimate in
vestigation and prosecution; second,
that it must be preponderantly clear
for postponement of action that
progress of the war effort would be
impeded; third, that mo one who
has sought actually to defraud the
Government shall obtain any post
ponement - d" in any event"
In a restatement of the first in
tent, the memorandum later says
that deferment or adjournment will
not mean exoneration or discontinue
ance of proceedings and that "as
soon as it appears that it will no
longer interfere with war production
the Attorney General will proceed"
Furthermore, ito make sure that
no escapes by the running of the
statute of limitations, We shall re-
quest Congress to pass an. appropri-
ate extension of the statute"
White House Secretary Stephen T.
Early said Congressional leaders
were informed of the agreement and
their approval obtained of the policy
and the plan to extend the statute
of limitations. Speaker Rayburn.
(See ANTITRUST, Page A-3D