June 4, 1957

ins cos seek avg 18% rise in NYS liability rates: Holz comments; All-state repts minimum policy now $123.50

6 fined $5,500 for attending club; gen mgr Weiss denies rift with Stengel; Stengel, players comment

US Sup Ct, 4-2, rules co violates Sec 7 of Clayton Anti-Trust Act by holding 23% of GM stock; overrules Judge LaBuy, returns case to him for determination of relief necessary; Justice Brennan majority opinion, concurred in by Chief Justice Warren, Justices Black and Douglas, holds that Sec 7 was always meant to affect 'vertical' mergers and stock acquisitions, and that Govt, to prove Act violation, need only prove 'probable' lessening of competition or tendency to monopoly when suit is brought, not that condition existed when stock acquisition was made; holds du Pont used stock to obtain preferential status as supplier of auto finishes and fabrics to GM; holds mkt 'substantial'; also cites GM vp Pratt '26 lr to GM Delco Light Div urging preference for du Pont mdse; minority opinion by Justice Burton, concurred in by Justice Frankfurter, warns on interpretation of Sec 7, finds that du Pont had little success selling other mdse to GM and that its sales of fabrics and finishes were only small port of total

Sen com, 7-3, approves amendment; Brownell, in lrs to key Repub backers of Adm bill, urges fight against it; sees it undermining program

Sup Ct rules Govt must produce FBI repts that form basis of testimony of witnesses in criminal trials or drop cases, C E Jencks case; decision ends tradition that FBI files are inviolate unless FBI elects disclosure; Justice Clark, lone dissenter, warns on ramifications of ruling