Evening star., 1954-06-05
Justice Report
Hits Fair Trade
Bill for District
Held Inconsistent
With Philosophy Of
Antitrust Lows
n - p NAs
By Don S. Warren

BY Don 5. Warren
The Justice Department has
thrown it's weight against the
so-called "fair trade" bill for
the District, which would give
manufacturers of trade-marked
competitive goods the right to
put q floor on retail sale prices.
In q lengthy report to the
Senate District Committee, VIII
liam p. Rogers, Deputy Attorney
General. denounced the measure
as being, In fact, a price fixing
measure and, as such, "incon-
sistent with the philosophy Of
the antitrust laws"
The measure now Is awaiting
action by the Business and
Commerce subcommittee Of the
Senate District Committee. It's
chairman, Senator Payne, Re-
publican, of Maine has reserved
Judgment, but another member,
Senator Barrett. Republican, of
Wyoming, has announced his
approval of a measure of this
kind.
Another Setback.
Hopes Of proponents received
another setback late yesterday
when a vacancy in a third place
on the subcommittee was filled
with the appointment Of Sena-
tor Morse, Independent, Of Ore
gon. a declared opponent of
such "fair trade" bills.
Senator Morse was appointed
to the place by District Commit
tee Chairman Case on the rec
ommendation Of Senator Nicely,
Democrat, of West Virginia,
ranking minority member of the
full committee. The choice was
Mr.. Neely's, because the vacancy
occurred through the transfer of
a Democrat, Senator Burke of
Ohio, to another committee.
Proponents Of the measure had
made the point that the District
Commissioners. in registering
opposition to the bill, had quoted
from 1945 and 1946 statements
by the Justice Department and
the Federal Trade Commission,
opposing an earlier bill before
Congress.
The city heads had told the
Senate committee they did not
know the view of the present
administration in the Justice De-
partment and the Federal Trade
Commission, but they made it
clear that the Commissioners
view was the same as that ex-
pressed in 1945 and 1916 by those
agencies.
Objections Outlined.
Late yesterday the present
Justice Department view. as out
lined by Mr.. Rogers, was made a
part of the Senate committee
record.
Mr.. Rogers opposed enact
ment of the bill on these
grounds: n -~, .~@t -..
1T is inconsistent with the
basic philosophy Of the anti
trust laws.
ut is susceptible Of use as a
cloak to hide general price-fixing
activities.
1T impairs competition at all
levels Of production and distribu-
tion."
In a more detailed analysis Of
the measure, Mr.. Rogers said:
"The basic American principle
which has kept our economy
dynamic and vigorous is that the
regulator of our free enterprise
system shall be competitive. not
the suppression of competition
either by governmental regula-
ton or by private agreements
"Under so-called fair trade,
price-f1xing arrangements are
entered into by private parties
without public regulation or
supervision. The public interest
is not represented at any stage
of the negotiations.
Enactment of this bill would
give immunity from the anti
trust laws to a segment Of the
business community. 1t would
further place the Congress on
record as favoring elimination
of price competition among re-
tailers with:
81. Resultant higher prices to
consumers.
"2. The throttling of initiative
of retailers, who would be de-
prived of the choice Of whether
to take a small markup and
make their profits in volume
sales and low overhead, rather
than in higher markups on fewer
sales.
IS. Advantages to the chains
and other large outlets. which
can market their private brands
below the prices fixed on the
fair-traded goods of their smaller
competitor.
a. Opportunities for boycott
ing and other coercive tactics to
insure cooperation"