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January 16, 1962 - Image 3

Resource type:
The Michigan Daily, 1962-01-16

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Foresees More Antitrust Bills


WASHINGTON (A')-President John F. Kennedy said yesterday
his administration has made more advances in the civil rights
field in the last 12 months than were made in the previous eight
The President also told a news conference that United States
Ambassador Llewellyn Thompson would continue his talks with
Soviet Foreign Minister Andrei Gromyko on a possible basis for
solution of the Berlin crisis. On?-

gal yesterday accused the United
Nations of bias and declared it
would refuse to take part in de-
bate on alleged Portuguese terror-
ism in Angola.
The accusation was made by
Ambassador Vasco Vieira Garin
before the 104-nation General As-
sembly as two Communist bloc
countries proposed that the As-
sembly direct the Security Coun-
cil to consider application of
harsh penalties against Portugal.
Poland and Bulgaria introduced
a resolution which would also have
the Assembly condemn Portugal
for pursuing a colonial war against
the Angolan people arid reaffirm
their right to self-determination.
Despite Garin's protests dele-
gates to the resumed 16th Assem-
bly session went ahead with the
scheduled debate on Angola, the
restive Portuguese possession on
Africa's west coast which Portu-
gal has ruled for almost 400 years.
Garin denounced the debate as
"mischievously designed, from
which only evil can come to An-
gola and to this organization it-
But he did not threaten that
Portugal would quit the world or-
ganization, as did Premier An-
tonio Salazar in a speech to par-
liament on Jan. 3. 1

"There is no doubt that the 87th
Congress will consider more anti-
trust bills than in most past years,
even though the Kennedy admin-
istration only partly accounts for
this increased activity," Prof. S.
Chesterfield Oppenheim of the
Law School says.
Prof. Oppenheim is chairman of
the American Bar Association's
anti-trust law section and was
formerly co-chairman of the Atty.
General's National Committee to
Study the Antitrust Laws.
"The most radical and bitterly
controversial bill would give the
Federal Trade Commission power
to issue temporary cease and de-
sist orders whenever the Commis-
sion believes it is to the interest
of the public," he says.
As the law now stands, the FTC
issues a complaint-for example
against a firm for false advertis-
ing. If the respondent, or firm in
this case, claims the complaint is
not supportable, he may contest
New Budget
WASHINGTON OP-) - Congress
was told yesterday that the an-
nual presidential budget is a poor
guide to the government's impact
on the economy because it doesn't
reflect the full range of federal
Roy E. Moor reached this con-
clusion in a book-length report
prepared for the joint Senate-
House Economics Committee on
whose staff he serves. The bulky
budget for fiscal 1963 will be sent
to Congress Thursday.
Moor recommended that changes
be made so the budget will be a
more accurate and useful econom-
ic gauge.
Although in 1960 the govern-
ment had actual cash receipts of
nearly $127 billion and expendi-
tures of about $130 billion, the
published budget amounts were
$78 billion receipts and $77 billion
expenditures, Moor claimed.

it and request a full hearing where
a hearing examiner renders the
initial decision. If the respondent
is not satisfied with this decision,
he may appeal the case as far as
the Supreme Court.
Until he gets the final decision
of the court, the respondent is
free to continue with the practice
against which the complaint nas
been made.
Cease and Desist
By the proposed temporary
cease and desist order, as soon as
the FTC files the complaint, the
respondent must stop the practice
against which the complaint has
been made-whether or not he
intends to appeal it. If it is ap-
pealed, he may not continue with
the practice until after he is
vindicated-a period of perhaps
two years.
"The discontinuance of the
practice, coupled with the public's
knowledge of the Federal Trade
Commission's complaint could
cause the corporation severe'
losses," Prof. Oppenheim says.
"Even when the company is finally
vindicated, it could be to late to
recoup its losses or perhaps pre-
vent utter ruin."
"This bill ignores the funda-
mental Anglo-American right of
an accused business firm to have
a full hearing before its conduct
is judged to be lawful or unlawful.
Furthermore, Prof. Oppenheim
continues, "There is no real need
for this legislation. A temporary
cease and desist order of the com-
mission would not be subject to
full judicial review and would give
the commission unprecedented
power to prejudge its own case on
an incomplete record."
Slight Chance
He admitted there was only a
slight chance of the bill's enact-
ment, even though President John
F. Kennedy approved it in a letter
to the Congressional committee
"In my opinion, this was one of
the very few instances in which
Kennedy has exercised poor judge-
ment," Oppenheim says.
"Probably the best outlook for
enactment is a bill which would
give the Justice Department the
equivalent of subpoena power to

compel the production of docu-
mentary evidence in a civil anti-
trust investigation prior to filing
of a complaint in court.
As the law now stands, the Jus-
tice Department secures a sub-
poena from the Grand Jury, which
supposedly makes investigations
of criminal prosecutions rather
than civil ones. In order to prevent
resort to the Grand Jury in cases
that are civil in nature, the Ameri-
can Bar Association approved the
pending bill with certain safe-
guards for the defendants.
Pre-Merger Bill
Another bill, the pre-merger no-
tification bill, also has a good
chance for enactment according
to Prof. Oppenheim, even though
in his opinion it would impose too
heavy a burden on the antitrust
division of the Justice Department
and the FTC.
The bill provides that in the
case of corporate mergers where
the combined capital of both ex-
ceeds $10 million, prior notifica-
tion must be given to the Justice
Department and the FTC. The
American Bar Association is op-
posed to this bill.
A fourth bill to be considered by
Congress proposes to increase
criminal penalties for antitrust
violations. The fines would be
raised from $50,000 to $100,000
maximum for individual offenders
and would force them to resign
their position within the corpora-
tion for one year.
Harsh Penaltes
"The present criminal penalties
are harsh enough," Prof. Oppen-
heim asserted. "If criminal penal-
ties for so-called business or white
collar crimes are made too stiff,
juries will be less likely to render
guilty verdicts and Judges will be
reluctant to impose the maximum
penalties anyway.
"The corporate image is harmed
more by the adverse publicity of
the case than by the fines or even
jail sentences."
Even though the number of
antitrust bills to be considered
by Congress is greater than in the
past years, some are a result of
bills introduced by the previous
administration, Prof. Oppenheim
specialists in internal medicine
filed tentative resignations with
Blue Shield yesterday, charging
"serious inequities" exist in the
fee structures of the medical-
surgical insurance plan.
The doctors charge that the fees
don't relate to training and ex-
perience. They cited the same $60
fee for a gastro-intestinal exam-
ination taking 30 minutes and a
cardiac treatment preceding a
heart surgery that takes.30 hours.,
* * *
' NEW YORK-The stock market
backed away from a moderate
early gain and displayed an irreg-
ularly lower pattern in final deal-
ings yesterday.
Dow-Jones Industrials closed at
709.50, a drop of 2.23. Railroads
closed at 148.81, a . drop of 0.07
while Utilities closed at 124.38, a
drop of 0.43. Stocks showed a
drop of 0.64 closing at 241.14.

U.S. SendsHelicopters to Vi

By The Associated Press
SAIGON-The United States
yesterday added two army helicop-
ters and several planes to the ex-
panding air force that is helping
President Ngo Dinh Diem's troops
cope with the Communist Viet
Cong guerrillas.
The Navy aircraft Ferry Breton,
a converted carrier, steamed up
the Saigon River to deliver the
helicopters and some observation
planes at the capital's docks. Four
jets bearing markings of the U.S.
Air Force's 109th fighter squad-
ron landed at Saigon's airport.
* * *
BERLIN-East German police
said last night they were tem-
porarily closing one of the two
crossing points where West Ger-
mans have been permitted through
the Communist wall into Red-
ruled East Berlin.
The crossing is at Bornhomer

Strasse, in West Berlin's French
sector. The police gave 'no reason
for the closing.
* * *.
ed Nations command and the Ka-
tanga,government announced the
exchange last night of all prison-
ers captured in the December
A joint communique said 10
Swedish, two Norwegian and two
Irish soldiers were surrendered by
Katanga authorities. The ,United
Nations turned over 33 Katangans.
* * *
WASHINGTON - Hundreds of
women braved a downpour to pa-
rade in front of the White House
and urge world disarmament yes-
President John F. Kennedy said
"their message was received."
The purpose of the organization
is to plug for international dis-

armament. Balloons released at
the demonstration were Inscribed
"peace or perish."
* * *
WASHINGTON-Officials said
yesterday a visa application by
Thomas W. I. Liao, self-styled
president of a Taiwanian provi-
sional government in exile, re-
mains under review by the United
The application has been pend-'
ing since last February and does
not appear to be under any active
consideration at this time.
The Chinese Nationalist gov-
ernment on Taiwan sent notes to
the United States last summer
asking that Liao, who was .then
in Tokyo, not be permitted to en-
ter this country because of his
hostility to President Chiang Kai-
* * *
ROCHESTER, N.Y.-About 120

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