The Washington times., 1923-03-18
HOOVER INQUIRY.
FINDS BUSINESS
NEEDS MEND|NG.
Commissions Are for Drastic
Change in U. S. Economic
Structure as First Need
TRADE GROUPS IMPORTANT
Should Function for Benefit
Of All interests and Not
Solely for It's Members
D. Internatlonal News servloe.

BY international News Service.
Growing complexity Of Ameri-
can commercial life, with IT'S soar
ing peaks of prosperity and val
leys of stagnation, has brought
about the paramount necessity
Tor drastic changes in, the coun-
try's economic structure, in the
opinion of commissions named by
Secretary of Commerce Hoover
to investigate the business fabric
OF the United States.
REPORTS IN APRIL.
This view is expressed by MEM
nera or the board selected to fnves-
figate trade association activities
and by a committee studying bust
ness bOon1s and depressions, it was
learned last night by the Interna-
tionaI News Service. The commits.
gioners are expected to make formal
reports in April.
Judge Nathan B. Williams, who
represented the National Manufac.
furers' Association on the trade
association committee, declared the
investigation disclosed the neces-
eity of economic changes whereby
trade associations must cooperate
with the Department of Commerce
! Tor the benefit of all business In
stead Of fllnctioning exclusively for
their own membership.
The beneficial reaction to bust
ness generally viii prove the sound
ness OF this theory" Judge Will
Hams said.
He said a hand book would be
issued by the committee outlining
the legitimate activities of these
organizations. Some associations,
the probe disclosed, had attempted
to organize price fixing cornbina-
tons in restraint of trade, but in
general, the investigation showed
the greatest potential value of the
associations.
Secretary Hoover, 1t was learned,
hopes to bring about Federal COM
pilation of all statistics now col
lected by trade associations. that
they may be broadcasted to both
producers and consumers. Buyer
and seller would thus be able to
study the market that they might
exercise sound business Judgment.
In the past these statistics have
been available only to the individual
trade by which they were collected.
The general result would be a
more equitable distribution of pro-
fits. blow at speculative buying
and tying up Of markets on various
commodities, and, 1t is hoped, q
creation of continued normal con-
dition OF business without occur
renee Of booms or slumps.
TO BEAT HARD TIMES"
Backing Uncle Sans death to
hard times" committee, Secretary
Hoover is said to be ready to dis
ctss with President Harding the
suspension Of government construc-
ton programs in periods of normal
times and general employment.
With approach of business stagna-
ton, it was pointed out, govern
ment construction could be en-
ployed as a weapon against hard
tines
Secretary Hoover is Of the opin-
ion that criticisms Of trade asso-
Citations, alleging them to be in vic.
1ation Of restraint of trade acts,
has been brought about by methods
ship rather than the associations
themselves. These criticisms. he
pointed out, have tended to obscure
the constructive functions and
valuable work of the bodies in up
building the efficiency, ethics
methods and services of American
industry and commerce.
The handbook is to be issued, not
TO educate big business. but with
the idea that legitimate trade
associations and other forms OF
business cooperation are the real
basis for promotion Of smaller bust
ness.
Secretary Hoover believes, II the
country il to have comprehensive
economic system, the time has
come when cognizance Of its neces-
stiles should be taken. He thinks
there is an ample field for trade
association work without trespass
upon the restraint of trade laws.