The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-12-01
Member Of Nam
Denies Virtues OF
Business Monopoly

Washington (LPA) - Newspap-
ermen crowded around as the big
shots from the National Associa-
tion Of Manufacturers, the Cham
Der of Commerce, and DUPONT told
the House Monopoly committee
that consumers were responsible
for the growth of big business. But
few were around when a little
manufacturers member Of the
NAM-denied their whole story.
The spokesmen for big business
were unanimous in declaring that
vigorous competition exists in Am
erican industry today-and that
the only reason the big companies
were big was that consumers pre-
ferred the products Of the com
panies which have grown so rapid
ly. The newspapers played up their
statements.
But wholly difTerei.- story was
told by Orville Morrison, president
of, the Suroc Refrige -ator Co.,
Glen Riddle, Pa, which 'pecializes
in making water coolers n compet-
ition with such giants a. General
Electric and Westinghouse. His
story got little attention in the
press.
Morrison said the consumer had
little choice under the monopolistic
practices Of big business. He charg-
ed GE and Westinghouse divided
the markets and did not bid against
each other. He said their products
were not sold on their merits, but
were forced on the consumer
through control of distributors
wholesalers and retailers who
were afraid to buy from any but
the big companies for fear Of re-
taliation.
A Quaker, who said his aim in
business was to please his consum
ers and his workers, Morrison en-
ploys only about 800 workers-but
said he had been able to outsell the
big companies for 20 per cent of
the water cooler business of gov
ernment units and big buyers who
test their own products.
"We try to put our money back
into our employees, because without !
them we can't do very much" Nor
rison testified.
The little business man said he
had tried to warn his colleagues in |
the NAM that they were "leading |
US down the road to totalitarian-
ism" by their mOnopolistic prac-
tices-but had made little head |
way. Many businessmen, he said,
were suffering from a neurosis |
which compelled them to try to
become the biggest in their field.
Challenging the testimony of the
big business spokesmen that con-
preferences were respon-
sible for the growth of the big
companies, Morrison said all sorts
Of devices were used to keep con-
sumers from exercising h cir
choice. He noted, for instance, that
many of the products he buys for
his plant can be obtained from only
One source-and therefore he has
no choice-whereas few years
ago there were many sources.
"Unless action is taken soon to
stop loss selling and division of
markets by Westinghouse and firms
ike that" Morrison said, "half the
small companies in my business
will soon disappear" He charged
he big companies lowered their
prices when his company was bid
ling but raised them when it
lidn't.
In many instances, Morrison
the consumer does not get ,
he best product because he has no
way of comparing quality. If GE !
,uts an inferior motor into re-
rigerator, as it has done, he said, :
he ordinary consumer cannot tell E
he difference.
Morrison charged the Army Pro-
urement Office in Chicago had :
avored Westinghouse in the recent
ward of a contract for 500 cool
rs-by writing specifications based :
n Westinghouse advertisements
nd permitting Westinghouse to
tier its bid after the bidding was :
losed. Chairman Emanuel Celler
d, N. W announced he was send :
lg the testimony to the Army, E
ne Justice Department, and the E
ederal Trade Commission E