The Barre daily times. (Barre, Vt.) 1897-1959, 1917-12-12
PRICE FIXING NEEDS
TO BE EXTENDED
Federal Trade Commission Thinks Gov
eminent Should Apply the Principle
to Iron and Steel Because of the
Economic Conditions.

Economic Conditions.
j Washington, d. c., Dec. l2.-Extenson
of the governments price fixing power
to other products than food and fuel and
especially to iron and steel, is believed
necessary by the federal trade commits
sion in the light of experience gained in
investigating economic conditions since
| the United States entered the war. Rec
ommendation that temporary admin
istrative body be established to deter
mine reasonable prices for prime necos-
sa1les and also to regulate the distribu-
ton of raw materials and finished prod
ucts was made in the commissions an
nual report, submitted to-day to Con-
gress
| Other recommendations suggest that
| the commissions powers of obtaining in
| formation be broadened to authorize re-
| quirement of reports from individuals
engaged in commerce, as well as cor
porations: that information gathered by
temporary semi official organizations
such as the council of national defense,
| including all correspondence be ordered
preserved; that trade association files
should be made public records; that in
vestigation of foreign trade conditions
be made to permit proper measures with
regard to American industrial organiza-
tion now and when peace is concluded;
that the Webb bill to eliminate associa-
tions for export trade from the operation
of the Sherman law be passed, and that
the salary limitation of $1,000 a year be
removed from the commissions expert
employees.
Declaration of war has not essened
either the number or importance of the
complaints made to the commission of
unfair competition, but on the contrary
the number of complaints has been in
creased. During the fiscal year ending
June 80, total of l02 complaints were
disposed of without formal proceedings,
leaving l9l complaints still under inves.
tigation Applications for remedial pro-
cedure by the commission showed a de-
crease from the fiscal year ending June
30, 1916. In nine cases during the last !
year, the commission issued formal com
plants, and in four the matter was dis !
posed of by the issuance of orders to |
cease and desist
Besides its regulative functions, the |
commission has been engaged in eco |
nomic Investigations, the most important |
of which concerned the newsprint paper, |
gasoline and coal industries. At the re-
quest of the president, the commission
has undertaken extensive inquiries into |
industries furnishing war supplies to the
government and information thus OBJ
tanned is being used as basis for gov
eminent contracts.
Regarding the necessity for govern
mental price fixing, the report says:
THE experience of this government in
the question of fixing prices is one that
has been carefully followed by the com
which has furnished extensive
data for this purpose to the fuel admin
and to the war industries board
The commission has also had under CON
sideration the experience of other coun-
tries in this matter, and particularly
England and her colonies, France, and
other allies. 1t is convinced that price
fixing by authority of law will have to
be extended to other products than food
and fuel, and that such authority is
preferably exercised by temporary ad-
body In particular it is of
the opinion that such price fixing power
should be established and exercised with
respect to the iron and steel industry,
for which bill has already been intro
luced in the Senate. Equally important.
n its opinion, with the fixing of reason
lble prices is the regulation of the dis
of the raw materials and in
ermediate products in the industry al
ected and of the distribution of the
inal products to the consumer In this
connection also should be considered the
made prior to the passage OF a price fix
ng law should be allowed to be en-
orced. This commission is of the opin-
on that the exact merits of the PROPOSE
ion might differ somewhat in different
Industries. With respect to the iron and
teel industry however. it believes that
he greatest public advantage would be
ttained by not allowing such contracts
o be fulfilled. at least over long periods
f time In the ease of coal. il is the
piniOn Of the commission that the con
inued fulfllment of long term bonafide
ontracts of sale made prior to the enact
1ent of the law would initiate against
he most successful operation of price
king by the government"
The need Of comprehensive investi
alton of trade associations according TO
he report, has been developed from the
other inquiries. Lack OF
dequate trade information has been
,und to be one Of the chief obstacles in
ANY industries to the operation Of nat
raj competitive forces. and where trade
ssociations collect such information. IL
as discovered that temptation frequent
results To control prices artifciallvI
ID the channels Of distribution. Pup
city Of trade association files. IL ssl
1ged. would extend the knowledge Of
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