Another Rock

American Motors President George Romney, David of the automakers, last week slung another stone at Goliath. Before Detroit's Adcraft Club, Romney once again demanded that General Motors be forced to give up its "dominant" hold on the U.S. auto industry (46% of the market). Said Romney: "Not only has G.M. dominated the industry for 20 years, but in the absence of an adequate antitrust policy, its competitors have existed only because G.M. permitted them to exist." If G.M. decided to cut prices and profits, "there would be fewer companies left in a very short time."

Romney wants to split G.M. into two companies. Such a "rebirth," he said, would help competition, and "it would also do much to remove a principal excuse for the excess power wielded by monopolistic unions. For some time now, the United Auto Workers has developed collective-bargaining demands directed essentially at G.M., and has used G.M.'s greater ability to pay to convince the public that the union's demands can be met." Was all this an attack on G.M.? Of course not, said Romney. "It would give us the advantage of two companies of G.M.'s competence. One of the highest compliments you can pay a person is to say, I wish you were twins.' "

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