Evening star., 1951-10-28
Business Competition
Declared Threatened
By Defense Agencies
BY Eroncis P. DouqIos

A House Judiciary Subcommit-
tee yesterday expressed fears that
the Nations defense production
effort would saddle monopolies on
the economy.
1t said that business competi-
tion has been endangered during
the mobilization program by
Ignorance and confusion" of Of
ficials.
Many in responsible mobiliza-
ton jobs, the group added, lack
knowledge of Americas basic
antitrust policies.
The subcommittee Is headed by
Representative Celler, Democrat,
of New York. Its report yester-
day is based on hearings held after
spade work was done by the sub
committees counsel, E. Ernest
GoldStein.
Serious Confusion" Seen.
Charging there is serious con-
fusion" concerning antitrust as
poets of the defense effort, the
subcommittee said "expediency
and haste have often taken the
place of careful reasoning and
considered planning"
1t criticized the Office of Price
Sterilization for failing to obtain
an exemption from the antitrust
laws in connection with a volun-
tary agreement in the copper in
duStry after it had obtained one
covering an agreement in the steel
industry.
The report cited advice from the
Justice Department that volun-
tary agreements should not be
sought at industry meetings with
out prior approval of the Attorney
General. Despite this, it said, the
National Production Authority
freely sought agreements on
voluntary ALLEGATION programs
at industry advisory committee
meetings.
The subcommittee also said de-
fense agencies have failed to
reconcile their advisory committee
procedures with Justice Depart
ment requirements in the face of
two letters of admonition to top
mobilization officials by President
Truman.
S75 Serving Without Pay.
1t reported that on September
there were 875 employees serving
without pay in the defense agen-
cies. While commencing them for
their patriotism, it said there is
danger that those from large con-
Germs will reflect a big business
attitude" in carrying out their
duties.
Undesirable personnel policies
with respect to paid Government
employees may be one reason why
such widespread resort to woes
(Without Compensation has been
necessary" the report declared.
THE subcommittee has in mind
particularly the case of Col. VII
liam 6. Knight who was per-
mitted to resign from the Ma
tional Production Authority after
hiss testimony before the sub
committee (on mixup in steel
ALLEGATIONS for locomotive build
ers.) The MAS dismissal pro-
cedure in the case of Earl Glen.
formerly acting director of the
rubber division, also leaves much
to be desired"
Among other things the sub
committee recommended that:
/. The President clear up ex-
listing doubt over the respective
powers and dutiees of the Office
of Defense Mobilization and the
Munitions Board with respect to
central procurement planning.
Q. Greater effort be made to en-
list woes from smaller COM
panies and that greaterr emphasis
be given to individual qualifica-
tions rather than company aff1li-
ationS in their appointment.
8. The Defense Department
maintain up-to-date information.
on the spread of contracts through
industries. Such data now is de-
scribed as "woefully inadequate"