Evening star., 1949-12-05
Voluntary Codes SET
By Sawyer as Goal in
New Antitrust Study
By the Associated Press

Some voluntary codes of fair
practice" may come out of a broad
new study of Federal policies in
the antitrust field.
That was one of the major goals
set up by Secretary of Commerce
Sawyer. in announcing plans for
the study. He listed as others:
A reduction of confusion. about
existing antitrust laws and clari-
fication for the businessman on
what he can and cannot do legally
Mr.. Sawyer announcing the
campaign yesterday, said:
1T is my observation, confirmed
by my recent Nationwide discus
sions with business groups, that
while most businessmen want to
obey the law and try conscien-
tiously to do so, there is much
unnecessary confusion at present
as to what the law prohibits and
what it permits
Truman Indorses Step.
President Truman himself in
dorsed the idea of seeking volun-
tary action rather than swinging
a big stick. The President asked
for recommendation to 'encour-
age legal and desirable practices,
(and) to discourage and bring
about voluntary abandonment of
illegal and questionable practices.
Mr.. Sawyer released a report on
concentration of production in a
small number of big firms. 1t
showed that in 46 industries doing
a combined annual business OF
more than $4,000. 900. 900, the top
four companies produce more than
IS per cent of all the goods.
Mr.. Sawyer said "the problem
of bigness will be on the agenda."
He was asked whether the cam
paign was undertaken because of
concern over growth of economic
or because of a need to
clarity the laws. Mr.. Sawyer said
was the major reason.
Sawyer to Head Committee.
In the study Mr.. Sawyer will
head a committee including rep
resentatives of the Justice Depart
Federal Trade Commission
and other agencies which deal
with unfair competition, price-fix-
ing combinations and monopoly.
The Treasury, Reconstruction
Finance Corp. and probably other
agencies also will take part.
Among the findings in the con-
of production report:
Three companies make all this
aluminium, four compan-
les do 95.7 per cent of all business
in the field of telephone and tele-
crap equipment, four firms make
91.8 per cent of light bulbs manu-
factured, four firms account for
90.4 per cent of cigarette making.
OtneFS LASteo.
Other highly concentrated in
as measured by the per-
centage of total output contrib
uted by the leading four COM
panies in each, include:
Small arms ammunition. 999
per cent: aircraft propellors, SO
per cent; aluminium rolling and
drawing. 94.2 per cent; locomo-
lives. 90.7 per cent; petroleum and
,oal products, 1872 per cent: fiat
,lass, 1871 per cent; matches, s82.7
Der cent; soap and glycerine, 7s
ser cent; tires and tubes, 1855 per
:ent.
In 130 industries-those in
which comparisons with 1885 are
possible-the study shows that
the degree of concentration has
increased in So industries and de-
creased in u. !
However, among the biggest in
with annual out !
put exceeding $500,000, ,000-there
were more increases Of concentra-
ton than decreases, by a score of |
IA to 8.
Getting Bigger Share.
In other words, in each of IA
large industries, the four leading |
companies were getting a bigger |
share of the total business than
they were II years before; in nine
industries they were getting less. |
Concentration had increased,