Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-08
HOOVER WARNS
Continued, from Page ons)


mil!stones for the grinding of COM
pettors as was the essence Of the
!. @old trade combinations.
1"Their purpose must be the ad-
@yAnccment of the whole industry or
trade, or they cannot hold together.
The total interdependence of all in
dustries and commerce compels them
in the long run to go parallel to the
general economic good. Their Lead
ers rise in real democracy without
bosses or political manipulation.
Citizens cannot run away from their
2. country il they do not like the politi-
cal management, but members of
Voluntary associations can resign and
The association dies.
Il believe that through these forces
we are slowly moving toward some
sort of industrial democracy. We
are upon its threshold IL these agen-
cles can be directed solely to con-
structive performance in the public
interest.
Z. IAN this does contain some dan
gers. but they win come only from
low ethical standards. With these
agencies used as the machinery for
the cultivation and spread of high
standards and the elimination of
abuses, I am convinced that we shall
-}+eve entered the great era of self
governing industry and business
which has been a dream to many
thinkers"
- referring to the penetration Of the
business world by legislation. MIR.
Hoover declared 1t was because there
was an abuse somewhere.
t,e. Legislative action" he added, as
always clumsy-it is incapable of ad-
= justment to shifting needs. 1t often
enough produces new economic cur
=, fonts more abusive than those In
e. tended to bo cured.
THE vast tide of these regulations
that is sweeping onward can be
stopped If 1T is possible to devise, out
OF the conscience and organization
OF business itself. those restraints
which will cure abuse: that will
eliminate waste; that will prevent
unnecessary hardship in the working
OF our economic system; that will
march without larger social under
. standings. Indeed it is vitality nee
essary that we stem this tide II we
would preserve that initiative in men
which builds up the character, In
tclligence and progress of our peo-
7u "In these times of muddled thought
1t Is sometimes worth repeating a
truism. Industry and commerce are
not based on taking advantage of
: other persons. Their foundations lie
m the division of labor and ex-
change of products. For through
specialization we increase the total
and variety of production and Sc
cure It's diffusion into consumption.
And our homemade Bolshevist-
r minded critics to the contrary, the
whole economic structure Of our ma
ton and the survival Of our high
d. general levels of comfort are de-
Il pendent upon the maintenance and
development of leadership in the
world of industry and commerce"
Urging industry to search for
methods by which II can develop and
enforce its own standards. Secretary
Hoover pointed to recent work of
the Commerce Department in aiding
the lumber industry to agree upon
1Certain standards for the conduct of
: its business. and as an example of
what may be done to correct etlls
referred to recent adjustments in the
bt.uminous coal industry.
Many. bills were introduced in
Congress to correct the evils in that
industry. he stated. and government
commissions had examined the ques-
ton but the real step toward elimi-
mating tho difficulties was taken
more cars. operators agreed to put
more coal in storage, during slack
..e rlarket seasons. and the men signed
- Contracts to keep production up.
Another instance of great inter-
est in which had the honor to par
tteipate," he added. was the aboli-
e.ttOn OF the 12-hour day in the steel
industry through the action OF the
steel association"
= ~ am, of course, we'll aware OF the
- legal difficulties that surround GER
tain types of associational work. I
do not believe that the development
- &c standards of conduct or the elimi-
!, nation of abuses in public interest
has ever been challenged as viola
ton of the Sherman Act. Moreover.
' to establish either physical or a
- moral standard directly sharpens
competition.
-. These associational activities are
- tile promising machinery for much OF
tie necessary determination Of ethi-
cal standards, for the elimination Of
useless waste and hardship from the
=. burden of our economic engines.
Moreover, we have in them not only
the agencies by which standards can
he set bul by cooperative action
among, the associations representing
the different stages OF production,
distribution and use we can secure q
degree of enforcenent far wider than
mere public opinion in a single trade.
when standards are agreed upon
by the associations representing the
manufacturer and distributor and by
those representing the user, we have
triple force interacting for their
enforcement" 1885,.