Evening star., 1926-05-13
MASS PRODUCTION
URGED BY HOOVER
Tells Commerce Chamber 1t
Is in Interest of BuSi-
ness Stability.

Economic and social changes in the
last Quarter Of a century were pic
tured by Secretary Hoover last night
as having given rise to the hope OF
solving the country's greatest problem
the method by which social salts
faction is to be attained with the
preservation of private industry. or
initiative. and a full opportunity for
the development of the individual.
Addressing the annual dinner OF
the United States Chamber of Com
merce, the Secretary declared that
while the economic things were not
the objective of life itself, 'if by their
steady improvement we shall yet
further reduce poverty and create
secure and happy homes. we shall
have served God to make better men
and women"
Only Speaker of Evening.
The Commerce Secretary was the
only speaker at the dinner. while the
general session during the day was
confined to a discussion Of resolutions
and an address by Gov. Ritchie OF
Maryland.
Mr.. Hoover stressed the Importance
Of mass production by big corpora
lions as being in the interest OF bust
ness stability and public benefit, and
discussed in turn the changed concep-
tions as to the basis of wages. growth
Of cooperative sense, ascendancy OF
management over ownership, increaS-.
ed stability of finance. elements OF
disorganization in some lines, and
benefits from the advance in educa-
lion. scientific knowledge and leader
ship.
Declaring he believed strongly that
full constructive competition must be
preserved In the manufacture and dis
tribution of commodities, the SeCre
tAry said the country was gradually
receding from the original concep-
tions of the antitrust laws that in
order to provide equal opportunity
there must be maintained a great
host OF highly competitive units in
every trade.
Public Opinion Changing.
by degrees" he said I'VE have been
retreating from this notion because
The competition it required became
At times highly destructive. We have
modified its application to orga nized
labor. 1t has been partially and will
probably be fully withdrawn as TO
cooperative marketing.
We have found" he continued
that to maintain complete competi.
tion in the utilities-tra
light, power. and communication
meant a fabulous cost in duplicating
equipment. with less financial stabil.
ity, increased operating expenses.
poorer service and increased rates to
the consumer. The Federal Govern
ment and most OF the As States. act
ing independently. have abandoned
competition reaching to each con.
sumer of the services as the method
of holding down rates and holding up
service and have established regional
monopolies."
A considerable element of direct or
indirect competition still exists. how.
ever. he declared. in the alternate
services that can in a large sense be
made available-other railways. other
forms Of power, other forms of light,
etc. so that the stimulus to improve.
ment is still held
Ideas i'm Other Trades MuddIed.,.
Ideas in other trades, he said. were
good deal muddled," In the manu-
featuring and business trades, where
there was a Theoretical attempt to
enforce full competition, whether de-
structive or not" the practice, he
added. seemed to have become more
legalistic than economic in. some of
it's results"
For instance, he said a consolidation
by purchase of units controlling As
per cent OF the output of an industry
had been held legal, and yet If a num-
ber of men owning individually a
much smaller percentage contracted
or combined to control production
or distribution. they stood in danger
Of prosecution.
Right or wrong. either way" he
asserted. I'VE are at least incon-
sistent."
Declaring mass production did not
necessarily imply trusts and monop-
olies. Mr.. Hoover said the biggest need
OF business today was thoughtful
consideration directed to the essential
question of how to maintain real com
petition instead of legalistic formula.
how to substitute constructive com
petition for destructive competition"
and the weighing of the whole process
of combination ''solely in the scales
Of public interest"
Some Industries Lasging. l.
Industries described as having lag
Fed behind others in the march to-
ward stability were bituminous. due
to war expansion, destructive competi- |
ton and other causes: textile, due
TO its migration South and West. and |
especially some branches OF the agri. |
cultural industry.
While the latter had struggled with |
some success through cooperative |
marketing. he continued. this method |
had been slow in developing, and the |
chief difffculty was the "summoning |
Of original initiative and leadership, |
failures from lack of skilled direc- |
ton, g. degree of individualism which |
persistently keeps individuals COIN
peting with the co-opera tves. and the
srNn ESa fuvr Hl.
selves TO provide the large sums of
working capital which such large con-
soidated undertakings require"
Agriculture, he said. remained the
Nations most difficult economi, prob
lem, and was not to be dismissed
with gesture of impatience at ideas
which spring from misery. but must