Evening star., 1946-12-26
Government Aided in Creation
of MonopoIies, Report Charges

OfMonopoIies,
Last of three articles ON the
groa1ing concentration of mon
opoly in the United States and
poor antitrust laag enforcement,
based ON an inDestigation By q
House subcommittee.
By Robert 5. Alien
A secret report now in the hands
of the House subcommittee on
monopoly charges that the Govern
mene itself is greatly accelerating
and strengthening monopolistic
control In the country by turning
over to big business bulk of plants
built during the war at the tax
payers expense.
Up to June. 80. 1945. the report
estimates, 70.l per cent OF the sales
of wartime plants had been MADE
to giant corporations" and they
also had acquired 72.8 per cent OF
the leases OF such plants. THE
proportion of the value Of these
facilities going to giant corporations
was higher than their ownership OF
manufacturing facilities in 1885," 1t
adds, "and not only had the big
surplus plants gone to the small
and medium sized plants which
were apparently we'll suited te
smaller businesses"
All the 18 plants sold for more
than $5,000,O00 went to giant cor
porations." Also they obtained Il
OF the 81 plants sold for $500, 900 to
81 600 900, and IA of the 143 plants
sold for 100000 to 100000.
SO Billion Aggregate.
Should the rs largest corpora
tions acquire the Federal facilities
on which they generally hold pur-
chase options, their plant anc
equipment would aggregate nearly
$50, SOC, ,0O0, 900. Thus they woulc
hold 65 per cent of the Nations
production facilities.
"Of greater importance, however
the facilities of the $50 industria
giants alone would total almost as
much as the entire facilities owned
by all manufacturing corporations
In the country in 1889"
The attack on the Governments
war plants disposal policy is con.
tanned in the third section Of thu
200 page report. The document il
a comprehensive study of economic
concentration in the United States
In the other two voluminous Sec
tions the report recommends II
drastic trust busting proposals ant
severely criticizes number OF Gov
ernment agencies for failure to en-.
force existing antitrust laws.
Prepared by a stan of experts, th'
sensational report has been undel
hot debate within the committee fol
several weeks. The three Demo
cratic members want to make i
public, but the two Republican
members are insisting on oper
hearings before official action il
taken on the report.
Showdown Seen Near.
A final showdown on the issue il
planned by the Democrats in thu
next few days. They want to ge
approval of the report before tn
new Republican controlled Congress
convenes January 3.
IF concentration is TO be re
duced." the report states, "ther'
must be a concerted effort involving
all phases of government. In som
agencies there is not only lack o
| interest Gin enforcement of anti
trust laws), but there are policie
which actually promote concentra
ton. This kind Of working at cross
purposes not only limits the e1ec
tiveness of Government efforts t
prevent concentration, but consti
tutes the most serious kind OF vast
of Government funds-since anti
trust activity must be increased Il
combat the concentration resulting
from other governmental activity.
| According to the report the s
largest manufacturing corporation
in the country had increased thei
net working capital to nearly $40,
O00, 900 900 by the end Of l94e
with this capital these 63 giant
could purchase all of the usabl
Government-owned facilities a
their option price, or they coul'
purchase the assets of 71.7oo smalle
manufacturing corporations will
assets OF less than $4,000, 900 each
which represent "a per cent OF tn
total manufacturing corporations u
the United States.
Large firms are, In fact. now usin
their wartime financial gains to bu
up small firms, as is indicated by tn
current sharp increase in merger
and acquisitions.
Figures Cited In Report.
Illustrative Of the high degree Q
concentration prevailing in Unite
States industry, the report cites tn
following figures:
There are only i've companie
manufacturing steel rails. car an
locomotive wheels, lead oxides an
beer cans. 80"
six companies are responsible
for the country's entire output g
corn and other sirups. e"
Seven manufacturers turn out a
Of the corn sugar and oxides.
Eight firms produce all OF tn
asbestos shingles, standard type
writers, tin cans, electric househol
ranges and machine-made tumbler!
goblets and barware."
In the key industries the repor
declares the following concentra
tions exist:
| AUTOMOBILES.
"The most concentrated area Q
the American manufacturing econ
omy. Prior to the war, the big thre
General Motors, Chrysler and For
produced 80 per cent Of the pas
senger automobiles, with the balanc
divided among eight other manu-
| s