The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-09
TRADE COMMISSION
SEEKS MORE POWER
Would Control Big Business
and Halt Many Unfair
Trade Practices.
MURDOCH MAKES APPEAL
Tells Congress Authority Ia
Needed to Help Cut Pre-
vailing High Prices.
spsciar ps.patoh 20 TIE sus.

va1l1ng High Prices.
Special Despatch 70 TIE suS.
WASHINGTON, Sept s.-Extensions Of
the powers OF the Federal Trade Com
mission 60 that the Federal Government
may exercise greater control 'over big
business and Illustrate several unfair
trade practices that are now considered
legal were asked of Congress to-day by
Victor Murdoch, one Of the commission
ers.
The additional powers are needed to
carry on a more effective campaign
against high prices. Mr.. Murdoch said
before the House Judiciary COMMITTEES,
His main suggestion was that the Fed
eral Trade Commission and Clayton anti
trust acts be extended so that the FED
eral Government may regufate the layge
number Of powerful voluntary trade or
ganizations that have grown UP in recent
years. In this class were suggested the
American Iron and Steel Institute. the
Institute of American Meat Packers and
various associations of dealers in coal,
shoes, textiles. clothing and other COM
modities.
Other practices of business that the
commission desires to break UP were
| enumerated by Mr.. Murdoch az follows /:
The guarantee against price de-
clines to tobbers by manufacturer;
1NAN A-lA - ~
officials Of one company by other
companies to obtain business; the
breaking Of contracts to sell spot on
a rising market; fraudulent and ille-
gal bond and stock issues.
Mr.. Murdoch suggested amendments
to the various sections of the two acts.
so that this additional authority might
be obtained.
Some Eliminated Competition.
In asking for powers to act against
the voluntary combinations of big BUSH
ness firms, Mr.. Murdock said many of
| these organizations had been developed
to such powerful position that competi-
ton had been eliminated.
The organizations are so intact that
| nobody is Disseminated against-that is
nobody except the public" he continued,
land the Federal Trade Commission has
no power to act when there is no COM
plant by other firms. The trouble is
that these associations have taken in
practically the entire industry
| The first step of such associations is
to meet and compare prices. 1t is not
long until they actually start fixing
prices for mutual benefit. Then earnings
are pooled"
| Would you desire to look into the
Gary dinners. for instance?" asked Rep
resentative Steele (Pa.).
Yes. we would desire to find IL there
is competition In the steel industry, and
/, ] think It would DO found that the public
alone is being Disseminated against"
Amendment Favored by Murdoch
Tho amendment suggested by Mr.
Murdoch follows:
Whenever from any investigation au.
thorized to be conducted under this ac,
| the commission shall have reason tC
believe that any person, partnership OF
been or is in its organization, business
| conduct, practices or management vio.
| lating the antitrust acts, or that the
| same will substantially lessen competi.
| ton or tend to create a monopoly, II
| shall issue and serve upon such person
partnership or corporation complaint
stating its charges In that respect, and
shall proceed in reference thereto in al
| respects as provided in section of thi,
act.
''If. upon hearing the commission shall
| be of the opinion that the method oil
| organization, business conduct, practice.
or management is prohibited by tht
antitrust acts. or that the same will
subsequently, lessen competition or tend
| to create a monopoly, 1t Shall make 8
| report in writing in which it shall stats
its findings as to the facts and shall
issue its order to cease and desist, oil
to readjust its organization, business
conduct. practices or management a.
ordered"
Mr.. Murdoch prefaced his Suggestion
with the general declaration that 9Th,
Government must exercise greater regu
lation of business"
Business is now being done in bis
units, and will continue so. The only
protection for the puble comes in regu
lation. We cannot break up the bis
business organizations.
zone OF the most important product.
that must be regulated is petroleum. r
will take all the forbearance and pa
thence of the two nations In the mex
fifteen years to prevent the embroilinf
OF the United States and Great Britain
in serious difficulties over the supply o.
fuel OIL Already the great combine il
this country, 'the Standard OH Compan,
and the big European organisation, tn,
British-Dutch Company, are planning Il
establish reservoirs all over the world Il
supply the ships of the merchant marin,
and the navies. The two government,
must exercise a restraint over this trade
or serious difficulties are ahead"
Mr.. Murdoch enumerated these causel
of the present high priest Imitation n
the currency with expansion of credit
general disruption due to the war, heaV,
expectations. speculation, restraint o.
trade by trusts.
Broad Law Is Advocated.
He suggested the changing of m,
statute TO include the following broat
lines. to reach the other practices n,
mentioned
Unfair methods of competition q,
unfair actss in commerce, or afrectin,
commerce, are hereby declared unlaw
full"
Illustrating the need for other lesIs
lation, Mr.. Murdoch said
I'VE found that during the war ear.
ners were breaking their contracts src
were selling spot on the rising market
On the request Of Herbert Hoover Nh,
commission ordered this. practice ston
ped, and 1t was stopped. We want m,
authority now.
THE commission is now diracftng ma,