South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-12-16

WASHINGTON, Dec. 15.-Exten-
sion Of the governments price fix
ing power to other products than
food and fuel and especially TO iron
and steel, is believed necessary by
the federal trade commission in the
light Of experience gained in inves-
tisating economic conditions since
the United States entered the war.
Recommendation that a temporary
administrative body be established
20 determine reasonable prices for
prime necessities and also TO regu-
late the distribution OF raw mate
rails and finished products was made
in the commissions annual report,
submitted Wednesday to congress.
other recommendation suggest
that the commissions powers Of OBJ
tanning information be broadened to
authorize requirement of reports
from individuals engaged in COM
merce, as well as corporations; that
information gathered by temporary
semi official organization such as the
council of national defense, includ-
ing all correspondence, be ordered
preserved; that trade association
files should be made public records;
that investigation of foreign trade
conditions be made TO permit prop
er measures with regard 10 Ameri-
can Industrial organization now and
when peace is concluded; that the
Webb bill TO eliminate associations
for export trade from the operation
o. the sherman law be passed and
that the salary limitation of $1,000
year be removed from the COM
missions expert employees.
Complaints on Increase.
Declaration of war has not lessen
ed the number or importance Of the
complaints made to the commission
of unfair competition but on the
contrary the number of complaints
has increased. During the fiscal year
ending June 30, a total Of 102 COM
plants were disposed of without
formal proceedings, leaving 191
complaints still under investigation.
! Application for remedial procedure
by the commission showed a de-
| crease from the fiscal year ending
I June 80, 1916. In nine cases during
the last year, the commission issued
formal complaints, and in four the
matter was disposed of by the issu-
ance of orders to cease and desist.
Beside its regulative functions, the
commission has been engaged in
economic Investigations, the most
important of which concerned the
TIT
industries. At the request of the
president, the commission has I'M
dertaken extensive inquiries into in
dustries furnishing war supplies TO
] the government and information
thus obtained is being used as a
basis for government contracts.
! Regarding the necessity for gov
ernmental price-fxing, the report
says:
Price Fixing Necessary.
! The experience of this govern
ment in the question of fixing prices
is one that has been carefully fol-
/ lowed by the commission, which has
I furnished extensive data for this
purpose to the fuel administration
and 20 the war industries board. The
commission has also had under con-
sideration the experience of other
countries in this matter. and par
ticularly England and her colonies
II France. and other allies 1t is con-
WINGED that price fixing by authority
of law will have to be extended &c
other products than food and fuel
and that such authority is prefer
ably exercised by a temporary ad-
ministrative body. In particular il
is of the opinion that such price-fiX-
ing power should be established and
exercised with respect 20 the iror
and steel industry for which a bill
has already been introduced in the
senate Equally important, in it
opinion. with the fixing of reason
able prices is the regulation of th'
distribution of the raw material
and intermediate products in the in
dustry affected and of the distribu
ION of the final products TO tn
consumer. In this connection ais
should be considered the question
whether bona fde contracts mad
prior TO the passage of price-fixinl
law SlOulQ De allowed 10 DC Ell
forced. This commission is of tn
opinion that the exact merits Of tn
proposition might differ sOmewha
III different industries. With respeC
10 the iron and steel industry, how
ever. il believes that the creates
public advantage would be attaine
by not allowing such contracts 20 b
/ fulfilled. at least over long period
Of time In the case OF coal, IL
the opinion Of the commission tina
the continued fulhllment Of Ions
term bona fde contracts Of sal
made prior TO the enactment Of IN
| law would initiate against the mos
successful operation of price fiNin
| by the government"
Needs Trade Information.
The need of a comprehensive in
| vestigation Of trade associations, az
4 cording 10 the report, has been dc
| veloped from the commissions othe
| inquiries. Lack Of adequate trad
/ information has been found 10 /
one of the chief obstacles in man
/ industries TO the operation OF ma
] ural competitive forces. and wheI