Evening star., 1948-12-06
Small Business Urges
Congress 10 Uphold
Basing-Point Ban
~ the Assecioted Press

A witness for small business said
today Congress may undermine all
antitrust laws If 1t tries to upset the
Supreme Courts "basing point" de-
cision.
George j. Burger, director of the
Washington Office for the National
Federation of Small Business, asked
the Senate Trade Policies Commit
tee to keep hands of the courts
ruling.
That decision earlier this year up
held q Federal Trade Commission
ruling that the cement industy's use
of "basing- point" prices violated
Federal monopoly and trade laws.
Under the basing-point system,
the manufacturer or supplier aver
ages out transportation costs in
order to quote identical prices to
customers, regardless of how far the
goods have to be shipped.
Confusion, Hardship Seen.
After the Supreme Court decision,
the cement and steel industries
abandoned their traditional pricing
systems. This resulted in higher
prices in many areas distant from
supply points or factories.
Chairman Capehart, Republican,
of Indiana of the Senate committee
contends this has caused confusion
in business generally and hardship
in some cases.
In testimony presented on re-
sumption of lengthy hearings on
the court decision and its ranifica-
tions, Mr.. Burger said most small
businesses do not care what kind of
price system is used, so long as it
does not discriminate unfairly be-
tween various customers"
Mr.. Burger insisted that, contrary
TO the impression he said previous
witnesses sought to leave, the Su-
preme Court decision did not outlaw
basing-point systems as such but
found agreements to use them
illegal.
Legalized Practice Asked.
Chairman Capehart placed in the
record letters from II chambers of
commerce and one city trade asso-
ciation asking that Congress legal
ize the practice of freight abSorp-
ton.
Charles w. Dunn, New York, gen.
eral counsel for the Grocery Manu-
facturers of America. Inc, testified
that the grocery industry has long
employed O basing point delivered
price and a uniform price in the
sale of branded consumer products.
Bert Cremers, vice president in
charge of sales for the Michigan
Alkali Division of the Wyandotte
Chemical Corp, told the committee:
"The present method of freight
equalization enables the large con-
sumner to insure stability of his
enterprise by providing more than
one source of supply, and enables
the new and smaller consumers, re-
gardless of geographic location, to
obtain their chemicals at a price
which will render them competi-
tive"
Question to Be Discussed.
Meanwhile, it was announced that
the question will be considered at
the 1913 Economic Institute of the
Chamber of Commerce of the United
States here Thursday and Friday.
Taking part in the discussion will
be Earl o. Shreve, national chamber
president. who will be moderator:
Melvin T. Copeland, chairman of
the Senate groups advisory coun-
ell: A. D. H. Kaplan Of the Brook
ings Institution: Walter Wooden.
associate general counsel Of the
FTC; Corwin D. Edwards, director
Of the FTC's industrial economics
bureau: Paul T. Homan. Council of
Economic Advisers, and numerous
business and university leaders.
A. Friday luncheon at the Statler
will be addressed by William Simon,
general counsel of the Senate Com
nittee.