Evening star., 1924-03-23
BY BEN MckELWAY
TINE Federal Trade Commission

f1E rSuSTdt lTdQe commission
may continue to cite companies
who label a cotton shoestring
'Purest Silk" and order them
10 cease and desist this odious prac-
tice forthwith and Immediately. 1t
may also keep its eyes open for In
trIngements of antitrust laws and
hale the offenders into court. But its
chances for giving the public basic
figures on the cost OF living and
the reasons therefor have gone a
Slimmerin,' according to interpre-
tations Of a decision last week by the
United States Supreme Court-a de-
cision which has plunged the offices
Of the Federal Trade Commission in
deepest gloom and caused a silence
among it's officials which is more elo-
quent than words.
Som etfme back a House committee,
n the goodness of its heart, requested
mat the Federal Trade Commission
suggest what might be done to lower
the cost of living. Easier tasks have
been ssigned by Congress, but the
Federal Trade Commission, with all
the spirit and ambition characteristic
OF youth, came right back with the
proposals that TT would be desirable
to obtain and publish from time to
time current information with respect
to the productions, ownership, manu-
tacture. storage and distribution of
Ioodstuffs, or other necessaries, and
the products or by-products arising
from or in connection with the prepa-
ration and manufacture thereof, to-
-ether with figures of cost and whole
sale and retail prices and particularly
with respect to various basic indus
tries, including coal and steel
Goes Out to Get Facts.
Congress thought the suggestion
good enough to risk S150,000 on it any
way, and this amount was appropriat-
ed. The commission therefore started
on quest which, for purity and high
mindedness of purpose can only be
compared to that of Sir Galahad
Could aught be more noble than to
find the cause of the high cost of
living?
The commission decided to direct its
inquiry generally in three directions
the food industry, the clothing in
dustry and the fuel industry, for food,
fuel and clothing are necessary for
every man who pursues life. liberty
and happiness. Laying food and cloth
ing aside for the time being. it CEN
tered on the coal industry and the
steel industry, including in the latter
closely related industries such as
,.f,r
The Federal Trade Commission,
even as Sir Galatad. met it's serpent
headed dragons The commission
asked n coal company and certain
coke companies to turn over to its
duly accredited agents monthly re-
ports on the cost of produ ction, ball
ance sheets and other information in
detail. The companies refused. The
commission sought to enforce its
order, and the companies obtained in
functions restraining it from so doing.
The cases found their way into the
District of Columbia courts. One of
them is pending i'll the Court. Of APP
peaIs. the other in the United States
Supreme Court. Both cases have been
lost, SO far, by the Federal Trade
Commission.
American Tobacco Case.
Now it is necessary to digress a bit.
The scene shifts back TO the Senate
chamber on hot August day in 1921,
where a resolution is proposed and
adopted calling upon the Federal
Trade Commission to investigate the
tobacco situation in the United States
IS to the domestic and export trade,
With particular reference as to the
market price, etc, etc The Senate
authorized the commission in its
resolution to obtain documentary
evidence by inspecting documents
rapers and correspondence in possess
sion Of the American Tobacco Com
pany. "said company being engaged
In the manufacture of tobacco prod
nets. which it sells or transports or
causes to be sold or transported IN
Interstate commerce.
The Federal Trade Commission
caeerfuIly undertook this new task,
and went to work. But here 1t met
mother obstacle. The tobacco com
pany. 10 and behold, would not give
ID it's papers and documents and cor
resr,ondence, and the Federal Trade
Commission sought mandamus to
,ompel the action. The case reached
the Supreme Court last week and the
tobacco company won.
Justice Holmes opinion.
Justice Holmes, delivering the opin- I
+on ~ the court with a choice and
characteristic use of the English
language, said: "The mere racts u
carving on a commerce not con-
fined within state lines and or oelns
organized as a corporation do not
maize mems affairs public, as those
of a railroad company now may De.
ANY one who respects the spirit as
well as the letter OF the tourtn
amendment would be loath to oelieVe
that Congress intended to authorize
one of its subordinate agencies TO
sweep all our traditions into the hre
and to direct fishing expeditions into
,r,vate papers on the possibility that
thew may disclose evidence of crime.
We do not discuss the question Wnetn-
er it could do SO if It tried, as noth-
ing short of the most explicit IAN
guage would induce us to attribute
to Congress that intent. The inter-
ruption to business, the possible rev.
eiation of trade secrets and the ex-
pense that compliance with the COM
missions wholesale demand would
cause are the least considerations. 1t
is contrary to the first principles of
Justice to allow search through all
he correspondents records, relevant
N the hone that