Evening star., 1947-08-12
Clark Orders
Probe Of Food,
Prices
Clothing Included;
Jail Will Be Asked
In Antitrust Cuses
BY the Associated Press

BY the Asseeia,sd Press
Attorney General Clark today
ordered an investigation Of food,
clothing and housing prices.
He instructed the Justice Depart
ment's Antitrust Division to deter
mine whether "conspiracies" exist
TO maintain or to increase present
prices in the food, clothing and
housing fields"
Jail sentences, rather than merely
fines, will be sought for any vio-
lators, it was announced.
A Justice Department statement
announcing Mr.. Clark's action, said:
Such conspiracies will be prose-
cuted criminally and In those cases
the Justice Department viii oppose
acceptance by the courts of pleas
of nolo contendere (no contest, and
upon conviction of the defendants
the department will recommend Jail
sentences for the individual de-
PENDANTS and maximum fines
against the corporations"
Is Result of 3-Month Probe.
The statement said the investiga-
tion follows a three-month study Of
the present price situation by As
sistant Attorney General John r.
Sonnet who took charge Of the
Antitrust Division in May.
Mr.. Clark feels, it was added, that
"the soaring high prices now con-
tinuing in the food, clothing and
housing fields, require that new
and more vigorous approach be
undertaken in these fields"
Hence, it was stated, the decision
to press for jail sentences for indi.
viduals violating the antitrust laws.
Shortly before the Attorney Gen.
erals announcement the CIO Full
Employment Committee issued Q
call for special session of Con-
gress to restore price controls.
Promises More Wage Demands.
The CIO pronouncement said
there would be another round Of
wage demands If living costs con-
tinued to rise.
Mr.. Clark recalled in his an
nouncement that President Truman
has repeatedly warned Of dangers
from rising prices.
Mr.. Clark's statement said:
TN his State Of the Union meg
sage in January President Truman
pointed out to the Congress that
despite half century OF anti
trust law enforcement one Of the
gravest threats to our welfare lay
In the increasing concentration OF
power In the hands Of small num-
Der of giant organizations, and that
today we find that to q greater
extent than ever before whole in
dustries are dominated by one or
a few large organizations which can
restrict production in the interest
of higher profits and thus reduces
employment and purchasing power.
viii Continue Monopoly Drive.
I'm his recent mid-year economic
report, the President warned that
prices, to support a prosperous
economy, must be kept down to
the lowest point compatible with
costs and reasonable business in
centives and that free enterprise
system cannot tolerate collision in
price, a curtailment Of output, or in
restriction of capacity expansion,
or, the hampering of the entry Of
new firms into the business life Of
the community.
"The antitrust program for this
year will be aimed at these vital
problems.
In addition to the new program
the division will continue its pres
ent activities aimed at breaking up
monopoly power in various In
dustries."
Before Congress adjourned, plans
were made for committees to study
living cost increases.
Subcommittee Appointed.
The inquiries will be made under
the general direction of the joint
Congressional Committee on the
Economic Report, headed by Sena-
tor Taft, Republican, Of Ohio.
The committee announced today
appointment OF subcommittee
headed by Senator Flanders, Repub-
lican, of Vermont to make study
Of the situation in Eastern States
and one, headed by Representative
Bender, Republican, of Ohio. to con-
duct an inquiry In the Midwest.
Senator Watkins, Republican, Of
Utah will head a third committee to
make studies in the Far West, but
the membership Of this group has
not yet been completed.
The CIO groups action was an
nounced by Emil Rieve, its chair
man. Mr.. Rieve said at news cor-
ference that the CIO feels prices
should be rolled back" to near levels
existing at the time OPA was abol-
ished.
Urges Truman to Act.
He called the projected congress
sional studies IAN investigation to
forestan action"
"The facts are already known" !"
Mr.. Rieye added. 1--WE are up to our
necks in imitation"
AS an alternative to calling spe-
cial session of Congress, Mr.. Rieve
proposed that President Truman call
a congress of industrial, labor and
agricultural leaders to develop vol
untary program for price reductions.
Truman TO Take Daughter