Fire Hose

Though they angered Roosevelt I the most, monopolies in tobacco, oil and whiskey were not the only U. S. trusts. The Bath Tub Trust made exciting news in 1899. The Wallpaper Trust was a failure.

In the depression of 1893 bakers talked darkly about a trust in gingersnaps and crackers. But not until last week did the U. S. ever hear of a trust in fire hoses.

When New York City called for bids in October 1932, the NRA was not even a political idea and the rubber industry was quoting 34-c- per ft. as its top price for fire hose. The following July eight new bids were received by the city. Seven quoted 71-c- a ft., the eighth 75-c-. All were rejected. Last February, after the Rubber Code had been in effect for more than a year. New York City authorities were amazed to learn that the price had jumped to 82-c-. Furthermore, they had received 13 bids from 13 different companies all quoting an identical price. That was more than Mayor LaGuardia could stand. He threw out all bids, demanded that NRA investigate.

Last week an investigation was completed, not by NRA but by the Federal Trade Commission. Attorney Harry A. Babcock of the Trade Commission appeared before the Senate Finance Committee, now taking testimony on a bill to extend NRA, to lay grave charges at the door of the fire hose industry. Rubber companies had conspired to fix the price of fire hose, said he, even before the Rubber Code was signed. "After the code was adopted," Attorney Babcock declared, "the conspiracy was perfected and consummated 100%." New York was not the only victim. When Milwaukee accepted a low bid on fire hoses, it was contended, the bidder suddenly found himself unable to deliver as no big rubber company would supply him at his price. On Attorney Babcock's recommendation, the Federal Trade Commission issued a complaint against the Rubber Manufacturers' Association, Rubber Code Authorities and 17 rubber companies including Goodyear, U. S. Rubber and Goodrich, for conspiracy in restraint of trade, price-fixing, customer classification, boycott and resale price maintenance.

Attorney Babcock proudly announced that it had taken him only ten days to investigate the "trust." Reason: The fire hose business is minuscule. New York City spent only $48,000 on fire hoses last year and $14,000 the year before, while other U. S. cities usually spend less. In 1933 the whole fire hose "trust" did only $2,600,000 worth of business.

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