Evening star., 1950-06-21
Business Seen Ruled
By Bureaucrat Whim,
Not Law Of Congress
Bosine Point Bill Veto
Leaves Many Wondering
If They Dare Take Risk
By David Laurence

By DGvtd Laurence
Businessmen suddenly have
discovered this week that they are
not governed by the laws of Con-
sress any more but by the whims
Of fallible bureaucrats who can
construe laws as they please. -,
The oft-quoted phrase gov
ernment Of laws and not of men"
has become obsolete with the
recent veto message Of President
Truman on the so-called "basing
point" bill.
All over the country, in commod-
tiles ranging from candy to
tooth paste and from steel to
paper, the producers are. wonder
ing If they dare take a chance
and absorb a part or all of the
freight rate in quoting delivered
price.
The President, in vetoing a bill
which attempted to clarity the
matter. virtually substitutes his
own Judgment of the meaning of
the law for the judgment of Con-
gress and the courts.
Statement by O'Mahoney.
Perhaps the most illuminating
statement of what has happened
is given by Senator O'Mahoney
OF Wyoming, Democrat, who
cfampioned the bill that the Pres
ident vetoed. The Wyoming Sen
ator, who was undoubtedly trying
to be constructive and to smooth
over the chaotic situation pro-
duced by the President, said some
things in his recent statement
which emphasize the government
of men rather than laws doc
trine.
II have read with satisfaction
the Presidents words: Thus it is
quite clear that there is no bar to
freight absorption or delivered
prices as SUCH I take this to be
an expression Of the desire of the
President of the United States
that the Federal Trade Commits
sion should not bring any pro-
ceedings against any seller who.
by individual action, without
combination or conspiracy, adopts
either Of these practices.
Il commend this presidential
construction Of existing law to
all businessmen and particularly
to all professors in the West and
in the South and indeed every.
where in the United States who
desire without restraint of trade
or unfair methods of competition
to quote delivered prices or to
absorb freight by individual ac-
tion in order that they may reach
the markets they must reach If
we are to have competition.
businessmen will note the fol-
lowing statement from the veto
message Of the President: I recog-
nize that businessmen have been
concerned lest they be penalized
for perfectly sensible and appro-
PIRATE competitive action. I be-
lieye their concern Is unVar-
ranted. - .;,,ae e3i
-sf~ Transparent Hypocrisy.
These words likewise should
be an encouragement to business
men who desire to compete by the
pricing methods mentioned in my
bill and should also be clear in
dication to all Government agen-
cies that there should be no pro-
cess against perfectly sensible
and appropriate competitive &C
ton involving freight absorption
or delivered prices which the Pres
ident says are not illegal as SUCH
That is the objective my bill sought
to attain" ~
But how can the President in
dicate to an independent agency
indeed, to quasi-judicial COM
mission, such as the Federal Trade
Commission is supposed to be
just what suits it may or may
not bring? And how can any
businessman rely on such trans
parent hypocrisy? For certainly
it may be predicted that If large
company like United States Steel
tries it, there will be q lawsuit
just the same.
The fact of the matter is that
the President has frustrated an
attempt by Congress in an i'm
portant matter-quoting delivered
prices-to exercise its rightful
power in regulating commerce.
Nobody knows now what is lawful
or unlawful. Competition, which
Is the essence of the American
system, has been prevented and
local monopolies encouraged. It
certainly should make a real cam
paign issue in certain areas of the
country where prices will grad
ually begin to rise as the buyer
has to pay extra for the freight
on nearly everything he buys.
Reproduction Rights Reserved1