Evening star., 1949-10-17

and faith but leaves out the attitude of to-
erance although reference is made thereto
under the heading of activities
Not one word indicates the presence of
Negro citizens although this substitute"
Tor religious instruction in public schools
llsts one activity, comparing the Indian
trloes as to forms Of democracy practiced
Que to the influence of religion"
Both these recent instances indicate that
were Christ in our midst he would wonder
ABOUT our professions of Christianity. I
repeat our educators on these two occasions
nave missed great opportunity to develop
the larger ideals of democracy and Christ
ianity. O., B. HENDERS0N
Concerning Price Competition
And Basing Point Systems
To the Editor Of The Star:
The bill relating to basing point methods
OF pricing. which was reported out of con-
terence on October IL. is very important
measure. There is reason to believe that
1t would not pass either house or. il passed
that it would probably be vetoed by Presi-
dent Truman, if it were fully understood.
Baslng point systems and the closely
similar zone price and freight equalization
systems are all methods of formula pricing.
In every industry using them, each supposed
competitor makes, at each destination in the
country, whenever he cares to bid, the same
delivered price as every other "competi-
tor makes at the same destination
One or another Of these systems is used
IN all building supplies industries, except
insofar as they have recently modified their
methods in difference to the basng point
decision of the Supreme Court in the cement
case. The results IN building costs have
been widely observed but too seldom attrib-
uted to the use of these systems.
NOW IN every one Of these industries. in
so1ar as these systems are employed, price
competition is destroyed and the public is
deprived OF the principal advantage, eco
nomically OF our world-vaunted free en-
terprise" system
The bill as reported by majority of the
con1erees is designed greatly to increase the
difficulties of the Federal agencies enforcing
antitrust laws in their efforts to restore
price competition to industries which use
these systems 1t IS designed to prevent
the Federal Trade Commission and the
courts from imputing, to those who use
Identical pricing systems, a mutual under
standing to match one another's delivered
prices exactly and thereby unlawfully to
eliminate price competition.
"A Logical Absurdity"
The expressed aim to foster competition
under the circumstances is a logical abb
surdity. The mutual understanding to make
Identical delivered prices is as nearly per-
1ect as II industry members had signed a
cartel agreement fixing prices Everybody
knows the delivered prices are identical to
buyers at each respective destination. The
competitive urge to make lower prices to
hold ones trade is gone. In place of it is
the fear that if one should reduce his de-
nVered prices, he would be regarded as
price cutter" renegade and enemy to
his industry, and be treated accordingly.
Much OF this. I strongly believe is not
understood by many members of the Con-
gress. They do not realize, for example.
that the once-famous Pittsburgh plus" case,
decided by the Federal Trade Commission
against the United States Steel Corp,
in 1924, could not have been brought
II the law had then been what it will be if
the conference bill is now enacted.
Few members of the Congress probably
realize that if that corporation should con-
clude to revive the old "Pittsburgh plus"
system. which seriously Disseminated
against every buyer of extensive steel To-
Gated from Indiana west to the Pacific and
from Kentucky to the Gulf this measure
would enable that corporation to do so. It
would preclude action by the Federal Trade
Commission. And If. in such event. the
other steel companies should conclude, as
they traditionally have done, to follow that
company's pricing methods, and could
prove that they did so independently"
Whatever that means, the results in fxa-
ton OF delivered prices serious discrimina-
ton against fabricators and consumers of
the West and South, and in the destruction
OF competitive enterprise, would be placed,
through this bill. beyond the reach of the
Federal Trade Commission.
If basic industries like steel, cement and
lumber and manV Lesser inGy1Strios ora
be thus encouraged by the Congress to de-
Stroy price competition, many results can
easily be foreseen. Among them are: The
undermining of efforts to enforce the Sher-
man Act through promoting efforts to cir
cumvent the antitrust policy; the ultimate
necessity for the Government to police
prices. in lieu of having them kept in check
by competition; the ultimate necessity for
the Government to police wages, as a CO.
rollary of policing prices: the furnishing to
foreign opponents Of this country of strong
arguments against the sincerity of our pro-
testat1onS for free enterprise; and the ship
wreck Of American efforts to preserve free
institutions among democratic peoples who
are already skeptical as to our firm and per-
manent adherence to a free competitive
economy. EUGENE w. BURR.
Questionable Collection Methods Cited
In Case of Roosevelt Stamps
To the Editor Of The Star: #
President F. D. Roosevelt was indeed q
great stamp impresario. as the editorial in
The Star of October states; so much so
that, according to John T. Flynn, pages 274
and 275 of his best seller ''The Roosevelt
Myth" he impressed into his personal COL
lection while he was president many thou
sands OF dollars worth of imperforated first
sheets OF new stamp issues for which he paid
only the face value.
In addition. again quoting Mr. Flynn, he
ordered delivered to himself large number
OF dye proofs Of stamp issues going all the
way back to 1896, which because of their /
value had been ordered kept in the Bureau
OF Printing and Engraving by President
Theodore Roosevelt. Mr.. Flynn states that
these dye proofs alone sold for SIS, 900 when