Evening star., 1948-11-19
Capehah Challenges
FTC Officials Job
In Prejudice Charge

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Senator Capehart, chairman of
the subcommittee on Trade Poll
cies, said today he will examine the
record before deciding on any &C
ton he might take regarding Wal
ter B. Wooden, associate general
counsel of the Federal Trade Com
mission.
He said yesterday that Mr..
Wooden, by one of his statements
before the subcommittee, had dis
oualifled himself from service with
the FTC.
Mr.. Wooden had testified before
the subcommittee that some Of those
calling for Qualification OF the law
regarding what prices a business
man may obtain for his products
want to continue the collusive prac-
tees outlawed by the Supreme Court
in the Cement Institute decision.
Senator Capehart took it as
blanket condemnation Of business
men who ask for clarification until
MIR. Wooden pointed out later he
had applied his statement to some"
businessmen.
Charges Prejudice.
Meanwhile, 3enator Capehart
said:
That statement shows that you
are absolutely prejudiced, and I'm
inclined to believe that you have
outlived your usefulness to the
Government"
.Senator Capehart also said today
lie would ask the FTC to go over
the testimony the subcommittee has
taken so far. Then, he said, he
would ask the commission ITO sit
dpwn with us" to see what can be
done to clear up the situation.
As a result of the ETC policies,
al upheld by the court in the cement
case, businessmen fear they can sell
legally only on an fob. mill basis
and that any absorption Of freight
charges to meet competition is out.
The cement decision ruled out the
industry's system of basing point
prices under which uniform prices
were set in a given area and main
tained by absorbing all or part OF
tie freight costs to the buyer.
4 Rapid Fire Questioning.
sDuring yesterdays session, Sem
ator Capehart and Senator Brew
sSer, Republican, Of Maine, were FIR
ing questions at Mr.. Wooden stimuli
taneously, but without denting his
,omposure.
Senator Capehart has said fire.
qilently that the present fob. pric-
ing system of the cement and steel
industries has taken millions and
millions" from the pockets Of the
consumers. He asked Mr.. Wooden If
he would agree.
Mr.. Wooden did not. He was asked
If elimination Of basing points had
not resulted in higher prices. He
said he would be careful as to what
he attributed higher prices sin such
a complex situation as this" In
runaway sellers market, he said,
you cannot separate the higher
costs that result from changes in |
the pricing system.
He asserted that, in the past, |
consumers have paid millions and
millions" because the cement mills
were protected by their price con-
spiracy.
Claims Some Pay Less.
II don't mean to say that some
have not had to pay more" since
the cement decision, he said. But
there are others who will have to
pay less At Senator Capehart's
suggestion, he agreed to produce
witnesses who have paid lower
prices.
He was asked whether it would
be legal for company, unable to
absorb freight charges to a distant
city, to set up a warehouse in that
city, ship goods there and sell those
goods at less than the home mill
net. plus freight costs. He agreed
this would be legal.
Senator Capehart asked whether
this does not favor the big pro-
ducer, who is financially able to
send up warehouses, over the small
man, not able to do so. He replied
the producer able to do this always
has had that advantage.
Concerning the need of clarifying
the law, Mr.. Wooden said he be-
lieves it already is clear but that
what is needed is a study of the
situation. He said it was fully ex-
pected that the cement decision
would be harmful to some but that
i.aaaaial caxaarallx.