Evening star., 1924-05-08
Remedy of Euils Will Lessen
is. Business Grip, Hoouer Says
Government Regulation of Industry
Vital Until Standards Are Raised,
He Tells C.. of C.. Convention.

CLEVELAND, May s.-Asserting he
was talking with his feet on the
ground and citing practical instances
in support of his contentious, Secre-
tary of Commerce Hoover told the
United States Chamber OF Commerce
at its annual meeting here last night
that America is on the threshold of
a new era in the organization of in
dustry and comm erce-an era which
promises to see less government in
business because of voluntary regu-
lation and the elimination of abuses
by business itself.
The thing we need searchingly to
consider" Secretary Hoover said, lis
the practical question of the method
by which the business world can de-
velop and enforce its own standards
and thus stem the tide OF govern
mental regulation: The cure does not
correction of abuse. 1t lies IN an
adaptability to changing human out
look.
Sees New Era DnwninE.
II believe we now for the first time
have the method at hand for volun-
tarily organized determination OF
standards and their adoption. i would
go further: l believe We are in the
presence of a new era in the organi-
Zation of industry and commerce IN
which. if properly directed. lie forces
pregnant with infinite possiollities OF
moral progress. l believe that we
are almost unnoticed, in the midst or
a great reVolution-or perhaps pet
ter word, transformation in the
whole superorganization OF our eco
nomic life. We are passing from
period of extremely individuallstlc
action into a period OF asSoclatlonal
activities.
"AssociationaI activities are. be-
lieve, driving upon a new ROAD wheIe
the detectives can be made whoiy
and vitality of public interest me
legitimate trade associations and
chambers of commerce, with which l
am now primarily concerned. possess
certain characteristics OF social I'M
portance and the widest olnerentla-
ton from pools and trusts. Their
membership must be open TO all mem
bers in the industry or trade, or rival
organizations enter the field at once.
Therefore, they are not millStones 1or
the grinding of competitors, as was
the essence of the old trade comoins-
tions. Their purpose must be the ao-
vancement of the whole industry or
trade. or they cannot hold togetner.
The total interdependence of all IN
dustries and commerce compelS tnem
in the long run to go paral!el 10 tne
general economic good. Their leaders
rise in real democracy without bosses
or political manipulation. Citizens
cannot run away from their country
if they do not like the political man
agement, but members OF voluntary
associations can resign and the 1850
citation dies
II believe that through these forces
we are slowly moving toward some
sort of industrial democracy. we are
upon its threshold if these agencies
can be directed solely to constructive
performance in the public interest
lest this associational movement
means the destruction of our com
petitive system, lest it inevitably oe-
stroy the primary lndlvlouailsn
which is the impulse of our society.
This alarm is groundless. Its rignt-
fuI activities do not destroy equality
of opportunity or initiative. In fact
they offer new avenues OF opportu
nity for individuals to make progress
toward leadership in the community:
ANY one of them will die at once IL
it does not offer equality OF oppor-
tunity to it's members; or il 1t re-
stricts its membership. rival associa-
tions at once emerge. They are the
safeguards of small business ano tnus
prevent the extinction of compeution;
They are the alternative 70 c4pIlSi
consolidation They are not CROWN
toward socialism-that is government
in all business-they are, in fact,
growth directly away from such an
idea.
Sees Legal Obstacles
'I am. of course. we'll aware of the
legal difficulties that surround GER
tain types of aSsociationa1 work.
do not believe that the development
of standards Of conduct or the elini-
nation of abuses in public interest has
ever been challenged as violation
of the Sherman act Moreover, 10
establish either a physical or a moral
standard directly sharpens compeu-
ton.
Now, | do not wish any one to