Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-06-23
TRADE COMMISSION
PLAN IS |ND0RSED
Would Have Prevented Growth
Of MonopoIies, Says
NeWIands.

The establishment of a trade commits
sion at the same time that the interstate
commerce commission was established
would have prevented the extraordinary
development Of monopolistic organiza-
tions In industry in this country said
Senator Newlands, chairman of the inter-
state commerce committee of the Senate,
In his report to the Senate today on
the federal trade commission bill.
IF this commission had been in ex-
istence during this period we would not
now have to deal with such organiza-
tions as the United States Steel Corpora
ton, the International Harvester Com
pany or the American Sugar Refining
Company: the American Tobacco Com
pany would not have been organized and
even the Standard Oil Company would
not have survived the dissolution of the
original Standard Oil trust in 1892.
Would Have Been Curb.
such a commission would have at leas
kept within limited bounds the activities
C a multitude Of price-fixing associa-
tions in different branches of business,
which. together with the great trusts,
have been potent causes of the present
high cost Of living"
Experience in the execution of the
Sherman antitrust law" said Mr. New
lands, .'as shown in the Standard Oil
and American Tobacco DEGREES of disso-
luton, and in the frequent efforts of
combinations to make voluntary adjust
ment with the Department of Justice
establishes that the question involved is
administrative as well as legislative and
judicial. 1t is generally conceded that
the peculiar character and Importance
Of this question make it indispensable
that some af the administrative func-
tons should Sbe lodged in a body special
ly competent to deal with them, by rea-
son of Information. experience and care
full study Of the business and economic
conditions of the industry affected
Cites Value Of Control.
THE value of such administrative over
sight and control has been recognized in
the banking and transportation business
and we have in the controller of the cur
rency, the newly created federal reserve
board and the interstate commerce COM
mission practical illustrations of the op-
GRAFTON Of such organization.
Senator Newlands. while admitting that
the present bureau Of corporations In the
Department of Commerce had many of
the powers which it is proposed to give
to the federal trade commission, declared
that that bureau had not had the pres
tige which would be given to an inde-
pendent commission, such as the inter-
state commerce commission.
Substitute for House Bill.
The Senate bill reported q week ago is
substituted for the bill which passed the
House. The two measures are alike in
principle, but the Senate bill would give
the commission power to prevent unfair
competition. and would allow an investi-
CATION of foreign trade conditions and
their effect on United States export
trade.
The report explains that the committee
proceeded on the theory that "private
monopoly is intolerable and unscientific, /"
and that a commission Is a necessary ad-
junct to the preservation Of competition.
It declares that the trade commission
should have sufficient power ancillary to
the Department of Justice to aid in the
enforcement of the Sherman antitrust
act to help business and to build up a
body Of information useful to both.
'If conditions warrant" 1t says, there
will be a natural growth in the power of
this body"