Evening star., 1947-11-21
Guidance Of Industry
Sought on ALLEGATION,
Under Marshall Plan
Leader Will Advise
On Home, Export Shore
OF VituI Materials
Bp David Laurence

SOlIl1IuLtccs lIUIIi NdllOuS llluuS-
tries are being consulted already on
the possibility of developing a pro-
gram for the ALLEGATION of materials
under the Marshall plan.
Members of the steel industry
have been called for an informal
conference next week The assump-
ton apparently is that the Congress
will vote the necessary powers to
allocate steel and other vital mate
rials.
Nothing like the wartime alloca-
ton system, however, seems to be
contemplated. The idea appears to
be to let the Government, through
some agency to be created soon,
handle the exports and distribute
the products In accordance with
overseas requirements, but the do
mestic ALLEGATION would be nominally
a governmental action.
Industrial Advisers Likely.
A plan may be worked out where
by members Of the industry would
act in an advisory capacity and
steel, for example, would be allo-
Gated on some basis fair to users
and producers alike Possibly the
formula will not be much different
from what 1t Is today except that,
with certain portion subtracted for
export, the amount that is avail
able for domestic distribution will
be somewhat limited.
The members Of any industry
would hesitate. on the other hand,
to take any responsibility for allo-
cation by concerted action They
may be subject to antitrust law
prosecutions If they agree among
themselves on any formula of dis
tribution or price fixing. Hence, in
the coming legislative action some
amendments to exempt from anti
trust prosecutions those companies
which obey a Government request
would seem to be necessary.
During wartime no such explicit
assurance was available, though
compromise formula was worked
out which industry accepted as in
volving little risk. 1t was recognized
that very likely no prosecutions
would come for obeying govern
mental requests.
In peacetime, however, the risks
are greater. Mere compliance with
a Government request is not safe.
Actually the distillers, for instance,
who agreed with each other recently
to close down their plants for so
days and comply with an informal
request by the Luckman commit
tee, were taking a chance in spite
of the fact that a letter from the
Attorney General promised not to
prosecute them for obeying the
Government.
In a future administration, an
other Attorney General could prose-
cute for the offense. Indeed, this
has happened before Various oil
companies contend that the famous
Madison (Wisc.) prosecutions in the
Federal Court were on charges that
the industry members say con-
stituted actions originally requested
by the Government. This has been
matter of debate ever since.
Chance to Clear Doubts.
Congress has the opportunity to
clear up all doubts and insure CO.
operation between industry and
Government by specifying what kind
of acts are immune. Certainly any
advisory group which recommends
concerted action by an industry in
accordance with a Government re-
quest should not be subject to prose-
cution.
The problem of how far the in
dustry committees will be permit
TED to function in the ALLEGATION of
products will soon come up for
discussion in Congress because, If
the new control powers to be
granted are used by cleft wingers"
merely to put over their planned
economy" ideas, the chance of
success for any program of conser-
vation or ALLEGATION will be slight
Congress also will want to limit
the time during which the new con-
troll powers may be used-possibly
for one year. Unless a fixed eXpira-
ton date is written into law, it
would take more than a two-thirds
vote of both Houses to override the
veto of a proposed repeal bill. When
legislation automatically expires on
a given date, it takes only ma
jority Of both houses to obtain an
extension or to let statute expire.
Some control powers will be
granted and the administration is
trying to convince industry that 1t
doesn't mean to regiment or direct
its operations but merely to get
enough goods for export and to hold
prices to existing levels.