Cure Worse Than Disease? - C&EN Global Enterprise (ACS

Testifying in behalf of both the Manufacturing Chemists' Association and the Synthetic Organic Chemical Manufacturers' Association, Henry H. Fowler ap...
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GOVERNMENT These newspaper accounts report that the Administration is cool t o the pro­ posals a n d variously say that Secretary Wilson will order t h e report shelved or will refer t h e Cordiner suggestions to the Cabinet and t o t h e President. T h e Civil Service Commission op­ poses a separate scientific a n d profes­ sional classification act a n d also op­ poses a general p a y raise. The Civil Service Commission desires further study of federal p a y policy that might result in a flexible w a g e system that could meet rapidly changing conditions in m a n p o w e r shortage fields. This view was indicated b y Commissioner Young in his speech before t h e Engineers Joint Council.

Legislative Outlook T h e outlook for passage of legislation is bleak at the m o m e n t b u t could be changed to a rosier h u e . I n its efforts to fight inflation t h e Administration has generally opposed p a y raises. Faced by a lack of Administration support or strong urgings from their voting con­ stituents, Congress appears somewhat apathetic toward the bills already intro­ duced. R e p . T o m Murray (D.-Tenn.), Chairman of the House Post Office and Civil Service Committee, h a s said that the a p p o i n t m e n t of t w o new Civil Service Commissioners will delay hear­ ings by his g r o u p for several months. T w o slight rays of hope: • Sen Johnston's announcement that his committee will hold hearings i n the next four months. • President Eisenhower's statement in his b u d g e t message to Congress that pay legislation for scientific employees should await completion of t h e Cordiner study.

ernment agencies, nothing will be done. It is becoming evident that u n ­ less this situation is corrected, t h e wel­ fare of our nation can b e jeopardized. Information on t h e problem has b e e n m a d e readily available from time to time by t h e various scientific societies, including t h e A M E R I C A N C H E M I C A L S O ­ CIETY. X o t only is it a privilege, b u t

it is a duty of citizens to advise their representatives regarding their views, supported by as much factual evidence

Cure Worse Than Disease? Proposed a m e n d m e n t to R o b i n s o n - P a t m a n A c t , says M C A , could f r e e z e prices, restrict f r e e c o m p e t i t i o n JL H E C H E M I C A L INDUSTRY last

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had a chance to tell Congress w h a t it thinks about S. 1 1 , the controversial bill to a m e n d the Robinson-Patman Act (C&EN, March 2 5 , page 3 2 ) . Testify­ ing in behalf of both the Manufacturing Chemists' Association a n d t h e Synthetic Organic Chemical Manufacturers' Asso­ ciation, H e n r y H . Fowler appeared be­ fore the Senate Subcommittee on Anti­ trust and Monopoly. • Industry O p p o s e s . T h e chemical industry opposes a n y change in existing antitrust laws which would further re­ strict free competition, says Fowler. S . l l "makes unclear or beclouds t h e situations in which a seller may com­ pete." Should S. 11 become law, says Fowler, free competition as w e know it today would eventually die. T h e effect of S. 11 on manufacturing sellers should be studied b y Congress, Fowler says. "Chlorine is chlorine," he explains, pointing out that chemi­ cals m a d e by different producers using different methods are almost identical. The actual selling of many chemicals is largely a matter of price. Any law that W h a t Should Be Done prevents competitor A from meeting t h e I m m e d i a t e interim legislation is price of competitor Β to customer X n e e d e d to remove t h e present p a y in­ dries u p competition a n d creates price rigidity, causing, says Fowler, a sort of equities. This w o u l d call for hearings "hardening of the competitive arteries." in Congress now. F o r long range» per­ As Fowler interprets S. I l , a pro­ m a n e n t legislation a study group or ducer lowering his prices in good faith subcommittee should b e set up. to meet those of a competitor must ex­ This problem of t h e growing discrep­ tend t h e lower price t o all his custo­ ancy between government salaries for mers wâthin a certain b u t undefined scientists a n d those paid by private trading area. However, u n d e r S. 1 1 , industry must b e solved either b y the such a price cut would be illegal if its Federal Administration or Congress or effect " m a y b e substantially to lessen b o t h . Unless m e m b e r s of Congress and competition or tend to create a m o n o p oly in a n y line of commerce in a n y sectop Administration officials are made tion of t h e country." aware of t h e facts a n d t h e need to T h e clause "may b e substantially t o correct a situation leading t o deteriora­ lessen competition" is t h e troublemaker tion in t h e quality of research in gov­ in S. 11, says Fowler. T h e word " m a y " 28

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as possible. O n e of t h e marks of t h e professional m a n is a serious concern with such civic responsibilities. T h e plight of government scientists presents a compelling opportunity for members of t h e scientific professions to demonstrate their concern with professional responsibilities a n d t h e status of their professions. Rather t h a n complain about t h e lack of status, each should now take some action to prove his sincerity. •

makes t h e test one " n o t of economic fact b u t of economic conjecture or p r e disposition," h e says. I n t h e chemical industry it is impossible t o tell in a d vance whether a price c u t may a t some time in t h e future " t e n d substantially to r e d u c e competition." Fowler fears this restricting phrase w o u l d be subject to m a n y interpretations by various courts. T h e Robinson-Patman Act as it stands today is a d e q u a t e , says Fowler. Most pricing complaints have to do with unfair a n d predatory practices which a r e illegal u n d e r existing laws. More vigorous enforcement of present laws would eliminate a large n u m b e r of these practices, Fowler feels. S. 1 1 , says Fowler, is general legislation which will change the ground rules of competition for every segment of our economy. H e suggests special legislation b e considered for correcting specific pricing abuses in those industries concerned. T h a t way, Fowler thinks, a general, highly restrictive law won't b e used t o cure isolated abuses in a few industries.

Potomac

Postscript

• N a t i o n a l I n v e n t o r s Council of t h e

Commerce D e p a r t m e n t calls o n chemists to develop compounds u r gently needed by t h e armed forces. Sample items: a c h e a p chemical soil stabilizer, noncorrosive chemicals t o melt snow a n d ice when t h e temperature drops t o —65° F., a simple w a y to convert auto storage batteries for use at —65° F. For a complete list of problems write t o N I C , U. S. D e p a r t m e n t of Commerce, Washington 2 5 , D . C.