The Washington herald., 1921-04-18
Trade Commission Sug-
gests Means of Price
Cuts to Harding.
LAWS TO SPEED UP
DECLINE OUTLINED
Vigorous Prosecution Is
Urged to End Prof
iteer Activities.

Recommendations from the Fed
ersI Trade Commission 60 President
Harding with reference to speeding
up the readjustment OF retail
prices were made public yesterday.
The recommendations are con
tained in a letter from the commits
sion to the President, to which ref
erence was made by President Har-
ding in his address to Congress
last week. The President. in his
address. did not go SO far as to
assume responsibility for the com
missions opinions or recommended
tions. but suggested that without
the spirit of hostility or haste IN
accusations Of profteerinE, some
suitable inquiry by Congress may
speed the price readJustment 10
normal relationship. with helpful
ness to both producer and con-
sumer."
The full text Of the commissions
letter as made public shows that il
covered a considerably broader field
than merely the question Of open
price associations" mentioned by
the President in his address
Letter Gives Details.
Six SPECIFIC recommendation are
made by the commission. as fol-
lows:
l. The passage n a bill which
will meet Judicial objections to the
authority Of this commission To
publish information. respecting the
ownership. production. distribution.
cost. sales and profits in the basic
industries more directly affecting
the necessities OF life-shs!ter.
clothing, food and fuel-for the in
formation Of Congress and the pro-
motion Of the public welfare.
? Vigorous prosecutions under
the antitrust laws, including a re-
examination OF the renewable de-
crees already entered in such cases.
with a view TO strengthening them
to meet present conditions. includ-
ing a closer scrutiny Of the sC-Called
open price associations. TO ascertain
whether under the Euise of benefi-
cisl associations they are in fact
violating the law.
s. Positive encouragement ~ cn-
operative associations of agricul-
tural products and cooperative
consumers organizations.
Hits Gambling in Future..
4. The passage of measures
aimed at the elimination Of unneU-
essary reconsignment and broker
age operations. Including ais"
gambling in futures" PyramidinC
Of reconsignments and Of Jobbing
sales. while not possible in present
market conditions. was one Of the
causes Of the buyers strike. from
which we now suffer. and may re-
appear whenever markets again be-
come speculative.
5. Calling 4 conference of Off
Cial representatives Of the trading
question of clearing the channels n
international trade so as to elimi-
nate undesirable combinations ana
20 promote fair competition.
s. Protection Of the farmer
against the more closely organized
elements with which he has To deal.
by extending Federal assistance in
giving more adequate and timely
information concerning foreign
and domestic market conditions.
and in affording more ample and
suitable local market and storsCe
facilities for the servioesble CON
servation Of perishsble farm prod
ucts.
In response 20 President HsrdinEE
request for general though not sta
tistical facts from the trade com
mission. both as to causes and rem
edies for existing conditions. the
commission submitted the following
striking conclusions:
One-Fundamentals in the cost II
living is the housing shortage and
the excessive price of fuel HiEh
rents and high coal prices limit the
buying power Of the general pub
lie. The excessive price OF many
basic commodities, prominent amonE
which is coal vitality affects tho
cost of other commodities
Second-The last Of Causes is
the existence Of the typical cor.
porate monopolies. and in distinc-
tion. agreements in violations @
the antitrust laws. illustrated in
the latter instance by the condition
in another basic commodity. lumber.
which WAS the subject Of a recent
report by this commission to the
Department Of Justice. and upon
which that department is now pro-
ceeding"
Price Associatfons-
Third-"open price associations. in
many cases not yet Challenged BY
the law. yet tending TO bring about
and maintain unduly high prices"
Fourth-'Ihterferen with the
channels of trade by distributors
trade associations. particularly by
activities tending TO maintain an un-
necessary number Of inefficient reg
ular' dealers. while shutting out
new dealers seeking to sell at lower
prices, and especially cooperative
purchasing and distributing orFani-
Estfons OF consumers"
Fifth-'The conditions with re-
spect TO foreign combinations IN ~.
international market" the commits
sion citing as q recent instance The
Cuban sugar commission, a syndI-
cate Of planters. bankers and deal
ers. which caused an increase in th.
retan price Of sugar throughout the
United States" Other Instances Of
the same type were illustrated hy
the Brazilian coffee vslorIzstfon
scheme. the Ecuador cocoa organ
ration, the Yucstsn sissl coml,ina-
tion, and the Chilean nitrate pre-
tueers syndieatS-