32 



SCIENCE 



[N. S. Vol. XLVII. No. 1202 



demand exceeds the supply, the maximum 

 prices are those in fact everywhere paid. 

 The difference in prices for a commodity at 

 different localities is only that necessary to 

 compensate for freight differentials and 

 other conditions. 



In the matter of distribution, commodi- 

 ties do not go to the highest bidders but to 

 the persons and places indicated by the 

 control. The wheat and sugar remain at 

 home and are sent abroad in proportions 

 decided by the Food Administration. Fuel 

 is furnished to the government and to cor- 

 porations and individuals as decided by the 

 Fuel Administration. Copper, iron, and 

 steel are first to go directly to war pur- 

 poses, then to purposes which are indi- 

 rectly to assist in the war, and only what 

 is left may go to unessential industries. 



If the prosecution of the war is best fur- 

 thered by so doing, commodities are sent 

 abroad. If to do this it is necessary to cur- 

 tail the home consumption, this is done. 

 The control of exports and imports through 

 licenses is completely in charge of the War 

 Trade Board. The common carriers in- 

 stead of acting independently and handling 

 goods without discrimination must so co- 

 operate in avoiding cross haulages as to 

 give the highest efficiency; and they must 

 handle goods in the order that the director 

 general indicates. 



In short, there is governmental control 

 of many phases of industry and commerce 

 for a number of the most essential com- 

 modities. 



By express act, any form of cooperation 

 in shipping which meets the approval of 

 the Shipping Board, even to the extent of 

 pooling, is exempted from the antitrust 

 laws. The same is true for the railroads 

 acting in accordance with orders of the 

 Priority Administrator. No such express 

 exemption is made for the agreements in 

 regard to food and fuel. It is to be pre- 



sumed that for these commodities the en- 

 actments of the food and fuel laws by Con- 

 gress may be construed as repealing the 

 anti-trust acts so far as the particular 

 authority of these laws goes. Thus the fix- 

 ing of the price of wheat and the control 

 of wheat as a government monopoly are 

 authorized by law enacted later than the 

 Sherman and other antitrust acts; and 

 they, therefore, in effect repeal these laws 

 as far as these transactions are concerned. 

 However, for the transactions of the War 

 Industries Board, there is no express law 

 authorizing the copper, iron, and steel men 

 to agree upon prices and to recognize prior- 

 ity. This board makes requests rather than 

 issues orders. The price fixing is by agree- 

 ment. These agreements may haA'e the 

 sanction of law by implication, so far as 

 the purchases are by the government under 

 section 120 of the National Defense Act. 

 But it is clear that in agreeing upon prices 

 for the public, the copper, iron, and steel 

 men are violating the antitrust laws, and 

 they are so doing by request of the "War In- 

 dustries Board, an instrument of the Na- 

 tional Council of Defense, and with the 

 approval of the President. 



Incongruity of the Regulatory Measiires 

 and the Antitr^ist Acts 



At the very same time these agreements 

 are being made and are in force, the 

 United States Steel Corporation is before 

 the United States Supreme Court, charged 

 with violating the antitrust laws by coop- 

 eration in controlling prices. Even if the 

 charges are fully sustained, they do not go 

 so far as the cooperation of the copper, 

 iron, and steel men in response to the re- 

 quest of the government. Is this not in- 

 deed an extraordinary anomaly? 



If the Steel Corporation is dissolved by 

 the Supreme Court in consequence of the 

 prosecution of the Attorney General, this 



