Evening star., 1947-05-05
Big Fish Are Target
OF Justice Agency in
Dive on MonopoIies
BY the kssoeioted Press

The Justice Department says 1t
iscgoing after the big fish among
nonopolies with antitrust suits on
Investigations involving 70 of the
100 biggest companies in America.
an inquiry is under way. too, into
c(mbinations Of investment bank
eys which Attorney General Clark
sagS are more or less able to con-
tint the money market.
This was disclosed in the record,
made public today, of hearings by
q House Appropriations subcommit-
tee on bill supplying money to
run the Justice Department for the
next fiscal year.
Derge Cites Wealth Concentration.
wendell Berge. then chief Of the
antitrust division, told the sub
committee:
THE country is now experiencing
the greatest concentration of eco
nofnic power IN its history
He said the 63 largest manufac-
turing concerns have enough capital
to buy out the 71,700 smaller ones
representing 81 per cent of the total.
Mr.. Berge, who has since left
the Government to enter private
law practice, said that 4of the 100
largest corporations n the United
States Al are now involved as de-
PENDANTS in antitrust cases and IS
are right now involved in active
investigation"
Seek to Get big Fish"
Chairman Stefan recalled that
the subcommittee had advised 60
ing after "big fish" instead of "frit-
tering away lot of time" on small
fry"
THAT is right" Mr.. Berge re-
piled. "And I certainly agree"
Among the factors that make
the monopoly problem more aggra-
waited than ever before" he said,
are the large percentage OF war
contracts which went to a few big
corporations and a great increase
in mergers resulting from avail
ability of liquid funds
Attorney General Clark informed
the subcommittee on the inyesti-
cation of investment bankers.
Operations Are Described.
He said he was told there were
combinations "by which they would
divide up the: offers with reference
to the refnancing Of outstanding
indebtedness or the financing of
new projects" with the first man
contacted getting the job.
Then the man would syndicate
1t" with or 10 others, he said,
and in turn be cut in on other
deals himself.
I'm that way they were able, I am
told" Mr.. Clark said, more or less
to control the money market"
Berge Provides Figures.
Backing up. this discussion of
economic concentration with fig
ures, Mr. Berge said that:
In 1945, the four largest iron and
steel producers owned 85.7 per cent
of the structural shapes capacity,
four firms accounted for so per
cent of domestic coke production,
and four for 54 per cent of crude
light oil.
In the first six months of 1916,
three auto companies had SO per
cent of the deduction.
At the same time, four COM
panies accounted for these percent
ages of doemstie output in their
respective fields: 95 per cent Of all
primary lead; SO per cent of all
brass mill products; So per cent OF
all wire, nails, and staples; rs per
cent of all tin plate, terneplate and
black plate; 81 per cent of all fin
isl1ed steel; So per cent of all pig
iron, all grades, and 81 per cent OF
foundry and malleable grades; 81
per cent OF all alternating current
fractional horsepower motors: GO
per cent of all copper iron mill
products.
1000 of Auto Tires Controlled.
Also, 10 per cent Of all passenger
and motorcycle tires, and 73 per
cent of all other tires; 100 per cent
of all roofing shingles and So per
cent of all siding shingles; 78 per
cent of all trucks and truck trac-
tors; AZ per cent OF all farm ma
chinery; 80 per cent of all steam
and diesel locomotives; 73 per cent
of all mechanical presses; so per
cent of all storage batteries and SO
per cent of all plate flatware.
Mr.. Stefan asked Mr.. Berge:
"Is it true as reported that the
department contemplates an in
vestigation of possible press
monopoly"
Mr.. Berge said a newsprint Inv
quiry is under way but that it does
not involve news gathering.