Evening star., 1942-01-20

jail. %a1
A specific ex- 49, III
ample of how David Lawrence.
the antitrust laws operate to i'm
pede national defense by spreading
fear of punishment among the very
industrial executives who are eager
to be OF help to their Government
In an emergency has Just been
given by the Justice Department.
There's an emergency situa ton
with respect to oil on the West
Coast. Fuel is needed in greater
quantities than heretofore to sup
ply feet at war Tonnage for
coastwise transportation is limited.
Into the emergency steps the oil
industry representatives on the West
Coast and Ralph Davies, deputy
petroleum administrator. A plan is
evolved to meet the emergency. But
Just as American oil men who tried
TO save distress gasoline situa-
tion once before found themselves
convicted in Federal Court by tech
nicalities under the antitrust laws,
another group of oil men see the
same wobbling sword held over their
heads today in the midst of war.
Production Control.
Thurman Arnold, Assistant At
torney General, who seems to have
as much If not more power over pro-
duction than Donald Nelson wher-
ever the antitrust laws are in
volved, has consented to look the
other way while the law is being
violated. He promises not to prose-
cute now. but at any moment that
he wants to change his mind he can
bring the oil men into court and
punish them for doing what they
had believed was their patriotic
duty. Here is an excerpt from the
text Of letter dated January IS,
1912, from Mr.. Arnold to Howard
Marshall. chief counsel of the Office
Of Petroleum Co-ordinator for Ma
tional Defense:
Because Of the sweeping char
acter of the plan embodied in the
recommendation and because the
recommendation proposes to dele
gate to members of the industry
subcommittee the power to formu-
late and carry out the plan, it is my
view that the recommendation does
not come within the procedure es-
tabIshed by the letter that the
Attorney General sent to Mr.. John
Lord O'Brian on April 20, 194l.
In view Of your representations
es to the present existence Of a
grave emergency in the Pacific Coast
area and in reliance upon your
statement that the petroleum CO.
ordinator for national defense re-
CARDS the adoption of this plan as
essential to the war effort, the De-
partment Of Justice is prepared to
adopt and pursue the following
policy in respect to this plan: The
Department of Justice will not in
stitute criminal or civil proceedings
against members of the oil in
dustry for acts committed in good
faith within the limits of the plan
set forth in the recommendation.
The Department of Justice, how
ever, reserves the right to examine
the actual operation of this plan
and proposes to exercise this right
from time to time. II this exami-
nation discloses at any time that the
plan in fact operates to restrain
trade in violation of the antitrust
laws, the department reserves COM
plete freedom to institute civil pro-
ceedings to enjoin the continuing
of acts or practices carried on under
the plan and persisted in after
notice to desist."
Whim Can Bring Change.
The foregoing is a paper assur-
snce. 1t can be changed overnight
with the whim of the Justice De-
partment. The oil men relied on
the good faith of Government off,
cials once before in an emergency
but the Government officials didn't
have the moral courage to 60 to
court and testify in behalf of the
oil executives and they were con-
victed. In the face of such a record.
other oil men are taking risks IN
participating in a plan which Is
officially termed to be outside the
so-called immunity assurances given
In the famous correspondence in
April. 1941, between the Justice De-
partment and John Lord O'Brian,
chief counsel for o. P. NJ, which
has been the basis Of all similar
in,munities in other industries since
that time.
There can be no voluntary pool
Ing of facilities as urged by the So
called Reuther plan and certainly
no voluntary curtailment of pro-
duction by any industry so long as
the antitrust laws are used as
club over the heads of industry's
executives. The Justice Depart
ment is a department within the
control of Congress. which can, if
It chooses, adopt simple amend
ment suspending antitrust LAWS in
all transactions approved by any de-
fense agency. That would be real
protection for the patriotic citizen
but It might. to be sure. curtail the
output of briefs and lawsuits by the
antitrust division.
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