STUDY OF MONOPOLY POWER

HEARINGS

BEFORE THE

50

SUBCOMMITTEE ON STUDY OF MONOPOLY POWER

S. Cone He

OF THE

COMMITTEE ON THE JUDICIARY,
HOUSE OF REPRESENTATIVES

EIGHTY-FIRST CONGRESS

SECOND SESSION

ON

H. R. 6679
(H. R. 7827)

A BILL TO INCREASE CRIMINAL PENALTIES UNDER THE SHERMAN
AND CLAYTON ANTITRUST ACTS
FEBRUARY 1 AND 15, 1950

INCLUDING ALSO

HEARINGS

ON

H. R. 6987-A BILL TO PROVIDE THAT THE ATTORNEY GENERAL
SHALL MAKE PERIODIC REPORTS TO THE CONGRESS WITH RESPECT
TO CONSENT DECREES AND PLEAS OF NOLO CONTENDERE IN CERTAIN
ANTITRUST PROCEEDINGS, AND FOR OTHER PURPOSES
FEBRUARY 8, 1950

AND

H. R. 5041-A BILL TO AMEND THE ACT ENTITLED "AN ACT TO
PROMOTE EXPORT TRADE, AND FOR OTHER PURPOSES," APPROVED
APRIL 10, 1918, TO PROVIDE THAT NO EXPORT TRADE ASSOCIATION
SHALL RESTRICT ANY FOREIGN BUYER FROM DEALING DIRECTLY, OR
THROUGH AN AGENT OF HIS OWN SELECTION, WITH ANY PRODUCER,
MANUFACTURER, OR SELLER

AND

COMMITTEE PRINT No. 1-A PROPOSED BILL TO AMEND THE
ACT ENTITLED “AN ACT TO PROMOTE EXPORT TRADE, AND FOR OTHER
PURPOSES," APPROVED APRIL 10, 1918

FEBRUARY 23, 24, AND MARCH 1, 1950

Serial 14, Part 3

Printed for the use of the Committee on the Judiciary

COMMITTEE ON THE JUDICIARY

EMANUEL CELLER, New York, Chairman

FRANCIS E. WALTER, Pennsylvania
SAM HOBBS, Alabama

WILLIAM T. BYRNE, New York
JOSEPH R. BRYSON, South Carolina
THOMAS J. LANE, Massachusetts
MICHAEL A. FEIGHAN, Ohio
FRANK L. CHELF, Kentucky
ED GOSSETT, Texas

J. FRANK WILSON, Texas

ROBERT L. RAMSAY, West Virginia
DIXIE GILMER, Oklahoma
BOYD TACKETT, Arkansas
EDWIN E. WILLIS, Louisiana
WINFIELD K. DENTON, Indiana
JAMES B. FRAZIER, JR., Tennessee
PETER W. RODINO, JR., New Jersey

EARL C. MICHENER, Michigan
CHAUNCEY W. REED, Illinois
LOUIS E. GRAHAM, Pennsylvania
FRANK FELLOWS, Maine
JOHN JENNINGS, JR., Tennessee
CLIFFORD P. CASE, New Jersey
KENNETH B. KEATING, New York
WILLIAM M. McCULLOCH, Ohio

J. CALEB BOGGS, Delaware
ANGIER L. GOODWIN, Massachusetts

BESS EFFRAT DICK, Chief Clerk
VELMA SMEDLEY, Assistant Chief Clerk
C. MURRAY BERNHARDT, Committee Counsel
WILLIAM R. FOLEY, Committee Counsel
WALTER M. BESTERMAN, Legislative Assistant
WALTER R. LEE, Legislative Assistant
CHARLES J. ZINN, Law Revision Counsel

SUBCOMMITTEE ON STUDY OF MONOPOLY POWER
EMANUEL CELLER, New York, Chairman

FRANCIS E. WALTER, Pennsylvania
JOSEPH R. BRYSON, South Carolina
THOMAS J. LANE, Massachusetts
J. FRANK WILSON, Texas
WINFIELD K. DENTON, Indiana

EARL C. MICHENER, Michigan
KENNETH B. KEATING, New York
WILLIAM M. McCULLOCH, Ohio

C. MURRAY BERNHARDT, General Counsel
DAVID C. COYLE, Consultant
JERROLD L. WALDEN, Assistant Counsel

II

J75
1949

19

CONTENTS

HEARINGS ON H. R 6679 (H. R. 7827)

A bill to increase criminal penalties under the Sherman and Clayton Acts

Testimony of

FEBRUARY 1, 1950

Page

Herbert A. Bergson, Assistant Attorney General in Charge of Antitrust

Division, Department of Justice...

1

James W. Cassedy, associate general counsel, Federal Trade Com-

mission..

5

Additional and supporting documents introduced: Copy of H. R. 6679, a

bill to increase criminal penalties under the Sherman and Clayton Anti-

trust Acts..

Testimony of-

1

FEBRUARY 15, 1950

Hon. Wright Patman, a Representative in Congress from the First

Congressional District of the State of Texas..

11

George J. Burger, vice president, National Federation of Independent

Business, Inc..

17

Additional and supporting documents introduced:

Excerpt from progress report, Select Committee on Small Business,

House of Representatives, Eighty-first Congress_

12

Letter, Hon. Estes Kefauver, United States Senator from the State of

Tennessee, February 18, 1950, to Chairman Celler-

25

2223

Excerpt from address, Needed Changes in Legislation, delivered by

Estes Kefauver before the Annual Convention of American Eco-

nomic Association, December 30, 1947-

Letter, Edward S. Mason, dean, Harvard University, Graduate School

of Public Administration, January 30, 1950, to Chairman Celler...

Report of the committee on the Sherman law of the section on the

antitrust laws of the New York State Bar Association on H. R. 6679_

Letter and memorandum in opposition to H. R. 6679, Commerce and

Industry Association of New York, Inc...

Resolution presented by the section of corporation, banking, and

business law and the standing committee on commerce, American

Bar Association...

Letter and report by the Department of Justice on Strengthening the

Remedies of the Antitrust Laws..

Prepared statement of George F. Meredith, executive director, Na-

tional Alliance of Independent Business.

33

40

Legislative program, National Alliance of Independent Business_

HEARINGS ON H. R. 6987

A bill to provide that the Attorney General shall make periodic reports to the

Congress with respect to consent decrees and pleas of nolo contendere in

certain antitrust proceedings and for other purposes

Herbert A. Bergson, Assistant Attorney General in Charge of Anti-

trust Division, Department of Justice--

William R. Peterson, University of Kansas City..

Additional and supporting documents introduced:

Text of H. R. 6987, a bill to provide that the Attorney General shall

make periodic reports to the Congress with respect to consent

decrees..

The Association of the Bar of the City of New York, committee on

trade regulation and trade-marks, report on H. R. 6987.

The Association of the Bar of the City of New York, committee on

trade regulation and trade-marks, minority report_

HEARINGS ON H. R. 5041

A bill to amend the act entitled "An act to promote export trade, and for other

purposes," approved April 10, 1918, to provide that no export trade association

shall restrict any foreign buyer from dealing directly, or through an agent of

his own selection, with any producer, manufacturer, or seller;

and

COMMITTEE PRINT NO. 1

A proposed bill to amend the act entitled "An act to promote export trade, and

for other purposes," approved April 10, 1918.

Testimony of-

FEBRUARY 23, 1950

Myron W. Watkins, consulting economist, Boni, Schorr, Watkins &

Mounteer, New York City, N. Y.

Hon. Abraham J. Multer, a Representative in Congress from the

Fourteenth Congressional District of the State of New York...--

Myron W. Watkins (resumed)..

Additional and supporting documents introduced:

Text of H. R. 5041, a bill to amend the act entitled "An act to promote

export trade, and for other purposes," approved April 10, 1918, to

provide that no export trade association shall restrict any foreign

buyer from dealing directly or through an agent of his own selection

with any producer, manufacturer, or seller.

Text of Committee Print No. 1, a proposed bill to amend the act en-

titled "An act to promote export trade, and for other purposes,'

approved April 10, 1918.

79

Letter, February 28, 1950, to Chairman Celler, from Electrical Manu-

facturers Export Association_

97

Letter, February 27, 1950, to Chairman Celler from Westinghouse

Electric Corp--.

98

99

Letter, March 13, 1950, from Hon. Abraham J. Multer, Congressman

from the Fourteenth District of New York to Chairman Celler...

Letter, March 6, 1950, from E. V. Huggins, secretary, Westinghouse

Electric Corp., to Hon. Abraham J. Multer, Congressman from the

Fourteenth District of New York..

Letter, March 13, 1950, from Hon. Abraham J. Multer, Congressman

from the Fourteenth District of New York to E. V. Huggins, secre-

tary, Westinghouse Electric Corp....

Letter, March 14, 1950, to Chairman Çeller from Hon. Abraham J.

Multer, Congressman from the Fourteenth District of New York..

Letter, March 14, 1950, from Gerard Swope, Jr., counsel, Interna-

tional General Electric Co., to Chairman Celler including consent

decree in United States v. Electrical Apparatus Export Association,

et al..

Letter, March 16, 1950, from Hon. Abraham J. Multer, Congressman

from the Fourteenth District of New York, to Chairman Celler...

Testimony of-

100

101

102

102

105

FEBRUARY 24, 1950

Eugene P. Thomas, president, National Foreign Trade Council, Inc.

Allen C. Phelps, Chief, Division of Export Trade, Federal Trade

Commission..

111

119

Additional and supporting documents introduced:

Hon. Woodrow Wilson, President of the United States, excerpt from

inaugural address, December 5, 1916............

Resolution, National Foreign Trade Convention, January 27, 1917...

The Silver Letter, excerpt from a reply by the Federal Trade Com-

mission to the silver producers, August 6, 1924..

Page

112

112

Federal Trade Commission, Report on International Steel Cartels,

page 16..

128

133

Federal Trade Commission, Report on the Sulfur Industry and In-

ternational Cartels, page 14.

134

Federal Trade Commission, Report on the International Phosphate

Cartel, page 44..

136

List, 44 export associations filing papers with the Federal Trade Com-

mission under the Export Trade Act, February 23, 1950...

143

MARCH 1, 1950

Testimony of-

Winthrop G. Brown, Director, Office of International Trade Policy,

Department of State...

147

Robert E. Sher, counsel, Typewriter Manufacturers Export Associa-

tion....

154

John C. Stedman, Chief, Legislative and Clearance Section, Antitrust

Division, Department of Justice...

172

Additional and supporting documents introduced:

Memorandum submitted by Winthrop G. Brown, Director, Office of

International Trade Policy, Department of State on Decarteli-

zation-Deconcentration Program in Germany..

152

Section 22 of complaint in United States v. Underwood Elliott Fisher

Co....

162

Typewriter prices, General Services Administration.

164

Pages 12 and 13 of the indictment in United States v. Underwood

Elliott Fisher Co...

165

Page 17 of the indictment in the case of United States v. Underwood

Elliott Fisher Co--

166

Return on invested capital, four manufacturers of typewriters.

Earnings, four manufacturers of typewriters, 1947, 1948, 1949

Paragraph X of decree in United States v. Underwood Elliott Fisher

Co....

167

168

171

Excerpts from report of Subcommittee on Foreign Trade, Senate

Small Business Committee (1946)...

182

Prepared statement of John Stedman, Chief, Legislative and Clear-

ance Section, Antitrust Division, Department of Justice----

184

APPENDIX

Prepared statement of Potash Export Association, Inc., on Committee

Print No. 1, a proposed bill to amend the Webb-Pomerene Act of

April 10, 1918..

Letter, February 21, 1950, Thomas C. Blaisdell, Jr., the Assistant Secretary

of Commerce, to Chairman Celler..

Commerce Department, summary analysis and comments on proposed bill

to amend the Webb-Pomerene Act submitted to Subcommittee on Study

of Monopoly Power, House Committee on the Judiciary.

Letter from Myron W. Watkins, February 27, 1950, to Chairman Celler.

Replies by Dr. Watkins to written questions raised by Department of

Commerce..

Letter, Electrical Manufacturers Export Association, February 21, 1950,

to Chairman Celler.

Letter, Chamber of Commerce of the United States of America, February

24, 1950, to Chairman Celler...

Letter, Bell & Ehrlich, attorneys at law, February 23, 1950, to Chairman

Celler in behalf of California Dried Fruit Export Association....

Letter, W. P. Gulick, president, International B. F. Goodrich Co., Feb-

ruary 20, 1950, to Chairman Ćeller...

191

193

195

197

198

202

203

203

204