Evening star., 1950-06-23
Johnson's S Statement
On FTC Decisions
Is Called AMAZING
Writer Sees Plain Effort
To Pull Many Political
Chestnuts Out of Fire
By David Laurence

By David Laurence
An amazing statement has come
from the offices of Senator Ed
johnson, Democrat, Of Colorado.
chairman of the Senate's all-im-
portant Committee on Interstate
and Foreign Commerce.
1t is amazing not because Sena-
tor johnson and his colleagues
feel aggrieved over the Presidents
veto Of the "basing point" bill. but
because they are taking Mr.. Tru-
man literally and are going to
hold an independent agency-the
Federal Trade Commissioners
countable directly for the clarifi-
cation of certain Of its decisions.
These decisions caused the present
controversy over the right to abb
sorb freight charges by quoting to
customers a delivered price"
Originally, when Congress
created the FTC, it was supposed
to be a quasi-judicial body. 1T
was not supposed to be subject to
executive or legislative pressure.
For the FTC now to attempt to
amend what the Supreme Court
of the United States laid down as
the law of the land or for the
commission to attempt to meet
the viewpoint of the majority of
Congress, which wanted Mr.. Tru-
man to sign the remedial bill, is
distortion of the functions of that
agency.
Administration Embarrassed
Plainly there is an effort here
to pull a lot Of political chest
nuts out Of the fire. The admins
tration is obviously embarrassed
politically and from an economic
standpoint by what has happened.
In April, 194S. the Supreme Court
agreed with the FTC that de-
livered prices which absorbed the
freight rate were the result Of
identical action in the cement
industry.
Had this been all that the court
said on the subject, it would have
been apparent that only "con-
certed action" to fix identical
prices by absorbing the freight
was being struck down by the
decision. But Justice Black in
speaking for the majority Of the
court went further when he said:
while we hold that the COM
missions findings of combination
were supported by evidence. that
does not mean that existence of
a combination is an indispen-
sable ingredient of an unfair
method of competition.
Congress attempted to clarity
this point by passing new law to
remove all doubt that delivered
prices" could absorb the freight
provided each seller acted indi-
vidually and not in concert. The
President vetoed the bill last week
on the assumption that the meas
ure was unnecessary and that the
Supreme Court didn't mean what
it said. His message was construed
as meaning that the Federal
Trade Commission itself now
would clarity what the court failed
to clarity. f /
Extraordinary Pronouncement.
Senator johnson, therefore, has
appointed q subcommittee of five
Senators-all of whom favored
the bill that was vetoed-to make
sure that the FTC makes good
on the implied instructions which
the Presidents veto message con-
veys to that commission. Mr..
johnson, in his statement, says
he felt that "the frequent shifts
in position of the Federal Trade
Commission, particularly it's early
approval and later disapproval of
the O'Mahoney bill. had destroyed
public confidence and required
continued close day-by day watch
fulness over its activities in this
field"
This is an extraordinary pro-
nouncement but the Colorado
Senator and his committee have
every right to survey the work of
the commission because, as he
promises, legislation may be
needed on this subject at the next
session of Congress. He also in
tends soon to submit written
questions to the FTC so as to
make explicit what can or can not
be done to promote competitive
prices by absorbing the freight
charges.
Many of the industries of
America and their lawyers are
pondering all this with grave con-
cern. Some think they may join
the "let's take a chance" school
of thought, which wants to begin
absorbing freight and depend on
the beneficence of the administra-
ton not to prosecute them for
violating what the Supreme Court
plainly said. Others fear to take
any chance and are adopting the
Tets play safe" doctrine.
AS long as shortages in certain
commodities exist the problem
will be academic. but wherever
supply is in balance with demand,
there Is q concrete choice to be
made between reliance on a gov
ernment of laws or on o govern
ment Of men-the fallible bureau
Gratis who are swayed one day by
one pressure group and the next
dav hv another