Evening star., 1949-03-27
'Basine Point Prices
To Be Argued Again
In Supreme Court
By Robert K. Walsh

The highly controversial and
complicated "basing point" price
system, outlawed by the Supreme
Court last year in cases involving
the cement industry. comes up for
oral argument again in the tri-
bunal this week.
The main question this time is
whether that method Of absorbing
freight charges. and delivering
products at uniform prices to var
ious destinations is illegal. even if
done individually by a manufac-
turer without agreement with
other sellers.
Before hearing those arguments,
probably Thursday, the court to-
morrow will listen to the post
poned plea for Gerhard Eisler,
German Communist. He is appeal
ing District Court conviction on
charges of contempt of Congress
for refusal to testify before the
House Committee on Un- American
Activities in 1947. He is on bail
under sentence of a year in Jail
and $1,000 fine.
II Cases Awaiting Decision.
The justices will return to the
bench tomorrow for another two
weeks of oral arguments following
q fnrtni0hf f0
of cases already heard. There are
II such cases awaiting decision.
Among those on which opinions
may be handed down tomorrow
are:
District cases on the right of
Washington residents to bring
civil suits in Federal Courts out
side of the District. and the new
trial request of Baxter Griffin,
Negro. under death sentence here
on murder charge.
A California case testing valid
ity of exclusive dealer contracts"
between oil producers and their
retail service stations.
A question whether "the Gov
ernment can sue itself" by asking
the courts to set aside an Inter-
state Commerce Commission order
denying damage payments to the
Government by a railroad.
A claim that the Government
can be sued by the estate of SOL
dier who. while on furlough. was
killed in an accident caused by
War Department truck driver.
Dealing With Wage Increases.
Other cases the Supreme Court
may decide tomorrow deal with
wage increases given by an en-
ployer without consultation with
a union. and the scope of agricul-
tural employe exemptions in the
Fair Labor Standards Act.
The basing point litigation has
been followed with keen interest
by industry. business and labor
groups since the Supreme Courts
decision year ago.
The earlier ruling held that use
of the basing point system in the
cement industry amounted to con-
spiracy. price discrimina ton, and
destruction of competition.
This aroused fear that numer-
Gus price and paint dislocati tions
would eventually result through
out the country. A bill is pending |
in Congress-. as an outcome of ex-
tended Senate committee hearings
at the last session. to legalize
freight absorption to meet COM
petitive prices. so long as there is
no conspiracy.
In Effect 80 Years.
The basing point system has
been in effect for almost so years
in many parts of the country. Un-
der the system manufacturer or
distributor set prices at one or
more points. such as city or fac
tory site. Each buyer paid the
same freight charge from that
point. irrespective of his distance
from the point.
Where various companies used
the same basing point and met
competitors prices. the more dis
tant companies often absorbed atl
least part of the freight charges,
resulting in a lower net price.
The matter up for a:eumentI
this week is known as the Rigid
Steel Conduit Case" and relates to
bssing point shipments of elec-
trio wiring and cable. General
Electric Co., Youngstown Sheet
and Tube Co.. Republic Steel
Corp, Clayton Mark & Co., are