Evening star., 1924-03-23
COST OF LIVING PROBE
. FRUSTRATED BY COURTS
Federal Trade Commission EnshrOuded
in Gloom Following Decisions
Shielding Desired Facts.


I'll documents in order to see if they
10 not contain it. Some grounds
must be shown for supposing that the
documents called for do contain it.
=
''The demand was not only general,
but extended to the records and cor
respondence done wholly within the
state. This Is made a distinct ground
for objection. We assume for the
present purposes that even some part
of the presumably large mass of pa
pers relating only to intrastate busi-
ness may be so connected with
charges of unfair competition in in
terstate matters as to be relevant.
But that possibility does not warrant
a demand for the whole.
Commission Enjoined.
Going back, now, to the commits
sion's cost of living inquiry. The
Claire Furnace Company and a num-
ber of other companies engaged in
related lines of industry sought and
obtained an injunction in the District
Supreme Court restraining the COM
mission from enforcing it's orders to
render it monthly costs of production
and other figures. The Court of Ap-
peals affirmed the decree of the Dis
trict Supreme Court, and Justice Van
Orsdel delivered the opinion. The
Federal Trade Commission may or
may not be worried now over the
striking similarity in the arguments
advanced by Justice Holmes and
those of Justice Van Orsdel.
The latter, for instance. said: at
will be observed that the inquiry in
stituted by the commission originated
from a discussion of a committee of
Congress relative to the high cost of
living, and an appropriation by Con-
sress of d lump sum to enable the
commission to conduct such investi-
CATION as it may deem proper. There
was no specific direction by Congress
to make an investigation of the steel,
iron or coal business. The commits
sion on its own motion and by reso-
luton instituted this investigation.
The commission is not proceeding
L,
charging complainants with unfair
competition or the violation of the
Federal Trade Commission act or the
antitrust act. Neither is it the ex-
pressed intention of the commission
to make an investigation relative to
The operations of complainant COM !
oanies in interstate commerce. The
Investigation seems to be more in the |
nature of a newsgathering expedi- |
Of public interest for publication, or
possibly subject matter for future
legislation by Congress. Common
Justice would seem to demand that
before the business methods pursued
by corporation or an individual
should be investigated. the party
should be apprised either by a
formal charge or by notice of the ex-
-ent of the proposed investigation, in
order that a day in court may be ac-
corded. This is essential to deter
nine whether the commission Is act
ng within its jurisdiction and to !
meet the charges preferred"
Weakest Links in Chain.
So, as Justice Holmes compares the |
Federal Trade Commissions quest for !
tobacco Information with a FISHING
expedition" into private papers. and /,
Justice Van Orsdel, in a lower court. (,
compares the commissions quest af-
ter the high cost Of living with a |
news gathering expedition, in hope
Of securing something of public in |
terest for publication" the commits
sion may well feel sad and gloomy /
over future prospects.
The weakest link in the commits |
sion's chain of action against the coal |
and coke companies--as it proved to /
be in the tobacco case-is that the
it would investigate are
in manufacturing and not in /
commerce. And it is only in matters
mission has jurisdiction, for the
courts have held in another case: /
'"The making OF goods and the min !
ing OF coal are not commerce, nor |
does the fact that these things are to |
De afterward shipped or used in inter- !
state commerce make their produc- |
lion a part thereof. Over interstate |
or its incidents the |
regulatory power of Congress is am |
pie, but the production of articles, in !
tended for interstate commerce, is a |
matter Of local regulation"
The Supreme Courts decision in the |
tobacco case and what it may decide (
in the coal and coke cases may be of |,
more far-reaching effect on the Fed |
eral Trade Commissions activities
than merely to halt an investigation +!
into the cost Of living along the lines |
first decided upon by the commission. |
But the officials of the commission |
are unwilling to discuss any possibil-
tiles.
Mere mention Of the Supreme Courts |
decision Monday was enough to pre- !
vent an audience with the commits /
sionerS last week. One talkative Sec |
retary admitted that I'VE feel terri |
1ertook to carry to a commissioner I
the writer's request for an interview. |
He returned Immediately with a de- |
NAL and on his face was clearly writ
ten: Heavens, man, how dare you," ;
England Demands
A Tl