Evening star., 1946-12-25
BY Robert S. Allen
Copyright, l946; by North American
Newspaper Alliance, Inc.

|
Newspaper Alliance, Inc.
A secret report of the House Sub
committee on Monopoly makes the
sensational charge that the JUS
tice Department is bypassing It's
own Antitrust Division and using
instead the FBI for antitrust law
enforcement. It adds that none OF
the FBI agents used in this work
| are specially trained for it.
Antitrust investigations, at least
in the biggest cases, are unquestion-
ably complex" the report states
Interstate in character, they IN
volve both difficult economic and
legal matters. Under such circum-
stances Antitrust Division person
mel certainly would seem the best
qualified to. assist on antitrust
work"
The existence of the secret report
and its far-reaching recommenda-
tions were exclusively revealed yes
terday by the North American
Newspaper Alliance.
Public Hearings Demanded.
Publication of the report, prepared
by staff of experts, has been held
up by a protracted behind-the-
scenes controversy within the sub
committee over its contents. The
two Republican members, Repre-
sentatives Hall Of New York and
Ploeser of Missouri, are demanding
public hearings before the report Is
officially released.
The three Democratic members
Representatives Kefauver OF Ten
nessee, chairman; Robertson OF
Utah and Jackson Of Washington
hold the report was compiled from
factual data obtained directly from
governmental agencies and private
industry, and that public hearings
would be waste of time and money.
The Democrats plan to force a
showdown on the issue before the
new Republican-controlled Congress
| conyeneS.
More than so pages Of the report
are devoted to critical analysis OF
the antitrust policies and practices
of governmental agencies. And 1t
is significant that large part OF
its condemnation applies to these
agencies as they were administered
under the Roosevelt administration;
the clear import being that the New
Deal not only did not enforce the
antitrust laws effectively, but did
nothing to curb the steady growth
of monopoly.
Division Admits Failure.
Singled out from a score as parti-
cularly subject to criticism are the
Justice and Commerce Departments
the Federal Trade Commission, the
Budget Bureau, the Reconstruction
Finance Corp, the War Assets Ad-
ministration, the Civilian Produc-
| ton Administration and the Wal
and Navy Departments.
The antitrust division frankly ad-
mitted its failure to prevent the
growth of monopoly, according to
the report, and gave various reasons
chiefly lack of funds and OF
sufficient authority.
( The report charges that Attorney
General Clark himself last year
! slashed the Antitrust Divisions ap-
preparation by 80 per cent. The
division asked for s3,500,000 Mr.
Clark reduced this budget by 81 ,000,-
600. AS a result, the report in
dicates, the work of the division
during this fiscal year has been seri-
ously impaired.
A result of the storage of person
mel, the report states, lis the very
pronounced tendency of the Anti
trust Division to accept pleas OF
nolo contendere and to accept con-
sent DEGREES rather than to fight
cases through to a conclusion"
The Antitrust Division" the re-
port states, had not undertaken
systematic review of economic
concentration, industry by industry.
and then proceeded to take action
against the most important areas
of concentration. Until this is done
1t is difficult to see how a reversa!
of economic concentration can be
expected through antitrust action.
Some Pending for Years.
Illustrating the Justice Depart
ment,s lack of an aggressive anti
trust policy, the report cites the
action record on a number of en-
forcement cases picked at random
One has been pending more than l6
years, two more than years, four
more than Z years, six more than
years and eight more than years.
The report also criticizes the JUS