86598 SELECT COMMITTEE ON SMALL BUSINESS EIGHTY-SECOND CONGRESS FIRST SESSION ON PRICE DISCRIMINATION AND THE BASING-POINT SYSTEM ・ ・ ・ JULY 13, 16, 17, 18, 19, 23, 24, 25, 26, AND 27, 1951 、 Printed for the use of the Select Committee on Small Business SELECT COMMITTEE ON SMALL BUSINESS JOHN SPARKMAN, Alabama, Chairman RUSSELL B. LONG, Louisiana HUBERT H. HUMPHREY, Minnesota CHARLES W. TOBEY, New Hampshire ROBERT C. HENDRICKSON, New Jersey LAURANCE G. HENDERSON, Staff Director SUBCOMMITTEE ON PRICE DISCRIMINITION AND THE BASING-POINT SYSTEM LESTER C. HUNT, Wyoming, Chairman RUSSELL B. LONG, Louisiana CHARLES W. TOBEY, New Hampshire Dr. WATER ADAMS, Economic Consultant II CONTENTS Boggs, Hon. Hale (Louisiana), Basing-Point Legislation Directed 291 175 Dorman, Alfred, Alfred Dorman Co., Statesboro, Ga. Douglas, Hon. Paul H., United States Senator, State of Illinois_- Foer, Mel, on behalf of the American Veterans Committee.. Frates, George H., Washington representative of the National Asso- 121 180 160 149 112 Gash, C. C., purchasing agent for the Omaha Steel Works, Omaha, 220 Hardman, John M., president, Hardman-Snowden Lumber Co.. Harrison, E. H., Boillin-Harrison Co., Clarksville, Tenn.. Hilts, Harry, secretary of the Empire State Petroleum Association. Johnson, Hon. Edwin C., United States Senator, State of Colorado- Johnson, W. D., Order of Railway Conductors, Washington, D. C... Marsh, Winston W., general manager, National Association of Inde- May, F. E., Riesing Paper Co., Housatonic, Mass McCune, A. C., president and general manager, Potter-McCune Co., 55 Mund, Dr. Vernon A., professor of economics, University of Wash- Pennell, J. Roy, representing the Spartanburg Concrete Co., of Spar- tanburg, S. Č., and the Greenville Concrete Co., of Greenville, S. C. Ragland, Charles S., C. B. Ragland Co., Nashville, Tenn___ Ray, Kenneth B., counsel, West Vaco Chemical Division, Food Ma- 63 Robeson, H. B., president, Nazareth Cement Co., Nazareth, Pa_ 189 168 Rogers, Watson, representative National Food Brokers Association__ Saks, Ira, Cleveland, Ohio, on behalf of National Standard Parts Asso- 82 33 183 Snow, William D., secretary and counsel, National Congress of Petro- 117, 142 Garnsey, Dr. Morris E., professor of economics, University of Colorado, let- Berge, Wendell, excerpts from Economic Freedom for the West_ Stocking, Dr. George W., professor of economics, Vanderbilt University, article on basing-point pricing and the South_ Neal, Dr. Alfred C., vice president, and director of research, Federal Reserve Bank of Boston: Article, The Effect of the Basing-Point Decision on the New England Economy (October 1948)_. President's Council of Economic Advisers, Report on the New England Economy, (July 1951), The Effect of the Basing Point Decisions on New Sweeney, Paul E., Method of disciplining competitors under the basing- point system in the cement industry. Statements on the legality of freight absorption, notice to the staff Press release, July 12, 1949, Order Denying Motion to Modify Order to Cease and Desist (4452) (Rigid Steel Conduit). Press release, June 10, 1950, Pricing Practices - United States of America Before Federal Trade Commission (Docket No. 5508-June 15, 1951) In The Matter of American Iron and Cowan, Nathan, director, legislative department CIO, statement.. Campbell, Wallace J., director, Washington Office, Cooperative League PRICE DISCRIMINATION AND THE BASING-POINT SYSTEM FRIDAY, JULY 13, 1951 UNITED STATES SENATE, SUBCOMMITTEE ON PRICE DISCRIMINATION AND THE BASING-POINT SYSTEM OF THE The subcommittee met, pursuant to call, at 10 a. m. in room 457, Senator HUNT. The subcommittee will come to order. Senator Sparkman, chairman of the Senate Small Business Committee, has designated a subcommittee to conduct hearings on S. 719. That committee consists of Mr. Long, Mr. Moody, Mr. Tobey, Mr. Schoeppel, and the junior Senator from Wyoming, Mr. Hunt. The chairman will read a brief opening statement for the record. Under the unanimous-consent agreement of the Senate on July 2, the Senate Small Business Committee was instructed to hold hearings on S. 719. The stated purpose of this bill is to— establish beyond doubt that, under the Robinson-Patman Act, it is a complete defense to a charge of price discrimination for the seller to show that its price differential has been made in good faith to meet the equally low price of a competitor. In addition, as the majority report of the Committee on the Judiciary accompanying S. 719 points out: The primary purpose of this bill is to conform statutory law to the interpretation of section 2 of the Clayton Act, as amended by the Robinson-Patman Act (49 Stat. 1526, 15 U. S. C., sec. 13) recently enunciated by the Supreme Court in Standard Oil Company v. Federal Trade Commission (340 U. S. 231 (1951)). While on the face of it, the bill before us deals with freight absorption in particular and the basing-point system in general, it goes further than that. It raises fundamental questions concerning our national economic policy toward small business and our traditional philosophy as embodied in the antitrust laws. In examining the bill before us, our inquiry will not be limited merely to the question of whether this particular bill should or should not be passed into law. Rather, while the committee does not have jurisdiction for recommending original legislation of this nature, nonetheless, it is clear in this instance that the unanimous-consent agreement leaves the way open for us to suggest amendments to the bill and if needed to suggest a new type of legislation. Therefore, we will be open to suggestions for any modifications which prove to be needed in the law affected by this legislation. |