The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1927-08-05
By HARVEY O'CONNOR

By HARVEY O'CONNOR
WashingtOn-Half of Washing
ton is amazed, the other half puzz-
zled by the sudden decision of the
federal trade commission to inves-
tlgate the "clOse financial rela-
lions" between the three giants of
American industry, United States
Steel, General Motors and dupont
de NenOurs.
MOVE A SURPRISE
Why the commission, agent of the
Coolidge Mellon Hoover theory that
government is the servant of big
business, should challenge the three
outstanding corporations on their
community OF interests" through
lnterlOcking directOrships, is ques-
ton largely unanswered. MANY
prOgressives who have been uneasy
over the purchase of large holdings
in United States Steel by the du-
Point interests, already dominant in
General Motors, believe the COM
missions action to result from the
personal insistenace of A. F. Myers
a new member. Myers was assist
ant attorney general in charge of
anti trust Investigations and is re-
ported to be honestly alarmed at
the towering influence which the
triangular union Of powerful indus
trial tOrces may achieve.
INVESTIGATIONS NOT TAKEN
SERIOUSLY
But that the Coolidge administra-
ton will call a halt to the worlds
greatest merger is hoId distinctly
improbable. Wall Street in its
stock quotations. reflects no uneasi-
ness over the commissions probe
While III Washington it is pointed
out that there is no hint of anti
trust prosecution. Tho department
OF justice has taken no action and
is not expected to. The commits
slon's order itself merely directs
the chief economist to male an
Inquiry into the relationships. d.
rect or indirect, tending to bring
these three large corporations IN
der a common ownership and con-
troll or management, with infOrma-
tIOn as to the probable economic
consequences Of such community of
interests"
OCTOPUS THREATENS GOV
ERNA1ENT ITSELF
Ii the duPont-U. S. Stc.ai-Gener-
al Motors merger, already incom-
parably the worlds greatest indusa
trial combination, continues to ex-
paHd taking in chemicals and dives
and establishing a close agreement
with General Electric, the giant of
the power field, it will dwarf the
agencies of political government.
Already this three-headed octopus
has taken the lead in instituting a
benevolent dictatorship over its
wOrker-subjects through elaborate
welfare and Insurance devices, cal
culated to choke off any demand
for state-administered social legis-
latiOn. Government, to this titanic
combine is merely device for
maintaining law and order so that
1t can operate its plants ard roll
cut profits. undreamed Of hitherto
IN the history of industry.
COMBINING CONCERNS EARN
HUGE PROFITS
General Motors, soon to be COM
plete master of the auto industry.
has just reported profits for tie
six months of S129, 100000, at the
rate Of more than a quarter billion
a year. the largest ever accumulat-
ed in peace times. Steel reported
profits of 100000. DuPont's
earnings, through control over mu-
nitiOns, auto paint and chemicals,
are fabulous.
IMPROVEMENT OF
UNITED STATES
With General Electric, thev viii
soon compose the super government
of the United States, in the ewes of
some of the scared trade commiz-
si0ners. Although realizing that
they are as pOwerless to prevent
this development as the govern merit
was il the Standard Oil cases. still
they feel that any rate an inquiry
should De made and the country
told Of the new era IN which two
or tire" great combinations Of cap
I'll