Evening star., 1928-12-31


. II is necessary to recognize that there
are as many opportunities nowadays to
prevent business expansion by inter-
ference, namely, by the exercise of the
regulatory power. as there are chances
to stimulate business by rendering a
q service of cooperation.
The principal duty of the Government
n nowadays in respect to the co-opera-
tive function is to render accessible
information which will help business to
- understand the domestic field and at
the same time data which will assist in
developing or maintaing an export trade
. abroad.
az But the element of interference is the
one which causes most apprehension.
During the lats campaign there was
much discussion as to what might be
!. expected from possible Democratic
victory, and it was constantly denied
by the Democrats that they would do
pcanything "to disturb business" BY the
T,ssame token the Republicans were as
suring the country that business would
q be safe and prosperity would be main
& tanned.
Now that the Republican party has,
~ by overwhelming vote, been granted
power for the next four years, the ques-
ton arises as to what disturbance, If
any, to business may be expected. 1t
It a curious thing that those who are
sensitive about possible interference do
not expect it to come from the execu-
tive branch of the Government, but
from the legislative. This is because
there is no telling what the minority
in Congress might do, and there Is no
zs telling. either, what a minority inside
the Republican party might start.
Veto Power Largely Used.
One of the most influential factors
- in maintaining equilibrium under the
- Coolidge administration has been the
determined use which the President has
M made of his veto power. 1t mattered
little how radical Congress might be-
come, Mr.. Coolidge would not hesitate
Ito use his veto to prevent Government
excursions into business or undue in
~ preference by Government in what ne
considered legitimate enterprise.
But already the pressure IN Congress
for a revision of the tariff has begun,
- and nothing is quite so disturbing TO
=, the business man as to hear about a
y tariff revision. 1t is not that some OF
" the schedules should be revised on a
E,r'basis of too much protection or too
- little, but that the financial community
~rin New York wants the status quo
maintained. Too many securities nave
4 been floated on the assumption tnaC
n earnings in past years would b. con-
tinued. To upset a tariff Schedule
ss might upset the financial condition OF
e companies which are earning large
v sums This, in any event, IS the argu-
s. nent from those who believe in status
QUO. From the other side comes the
- cry that the ultimate consumer Is the
Zone whose interests must be given para
= mount consideration.
1af But whatever the argument, the 1act
remains that talk of a revision OF tle
tariff is not accepted as hea!tny
y sign by the business elements. Ana
that's why, at this writing, every eI-
-ufort is being made to postpone tarl1
zsrrrevision until next September, wnen an
extra session may be called, or 10 Ine
regular session December. 1929. THIS
suggestion has been made by business
s.amen on the theory that If tarin re-
vision is postponed for several months,
enough time will have elapsed TO study
those schedules which need revision
and hence the whole tarif structure
will not be imperiled nor will there
. be undue apprehension or uncertainty
Ia business about schedules that are
AZ not to be touched.
- Government Competition.
- Government interference in business
= sometimes takes the form of Govern
ment competition. The electric power
companies have been fearful that out
~ of Muscle Shoals and Boulder Dam
would grow Government-owned power
aa plants which would lead to public
ownership or distribution and hence
compete with their business. The view
of President-elect Hoover is that where
. ever private industry can accomplish
- result at a fair profit to the investors,
the Government ought not to be q
competitor. It is safe to assume that
:. he would veto any legislation Wnlcn
put the Government into business II
y already has not entered. Perhaps the
. greatest pleasure to keep the Govern
ment out of business has come from
the merchant marine groups and the
a.a. Jones White act is considered COM
promise piece of legislation which pre-
serves Government operation until such
go time as a merchant marine can be sus-
tanned by private capital. But the
Government out of the shipping busi-
ness.
There are other instances in which
p Government competition Is looked upon
by private interests as disturbing, but
by and large the influence OF the Gov
p eminent upon business Is not so IN
tensive in this direction. Government
interference comes rather from the
exercise of the regulatory function,
namely, the protection Of the consumer
8 and the preservation of fair trade re-
- lationS between competitors. Inc
growth of chain stores, the mergers OF
" large institutions, and the launching OF
several large enterprises with unprece-
dented sums as capital have raised
= some interesting questions as to GOV
eminent interference. VIII wealth. DC
concentrated into the hands OF few
: people? Will the small business man
ri be crushed between the upper ano
lower milestone? Are mergers a sign
of forthcoming monopolieS?
All these points have been given
careful consideration at the Depart
ment of Justice and will continue tc
be the major subject before that, de-
partment under the new administra-
ton. Col. William Donovan, Assistant
Attorney General. who has been lr
81. charge of antitrust cases. is known tc
hold the view that more can be ac"
complished by preventive action than
slby prosecutions. He is of the opinion
that when merger is in prospect. tht
. principals should bring the facts Il
the attention Of the Department o.
justice and lay all the cards on the
\, table, and in return the Attorney Gen.
~eral should say frankly whether tht
- proposed combination appears to con
gf traVene existing laws. 1t is true tha
this does not guarantee immunity, be-
cause in the development OF merger
some fact or contingency might happer
=, which would be violation of the Law