Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-03
SESLAWS NEEDED
AS CURB ON CHAINS
Senator Sackett Gives Talk
on "Super-C orporate"
Financial Growth.
BY FREDERIC WILLIAM VILE.


At the hour when Congress and the
country at large are bordering over the
causes and lessons of the recent stock
market panic in Wall Street the atten-
ton of the United States Senate has
been drawn by one of its Republican
members, Senator Frederic M. Sackett
of Kentucky, to the necessity of new
laws to curb super corporate" activities
Addressing the Transportation Club of
Louisville on October 81, Senator Sack.
EFT delivered a briStling analysis OF
what he considers to be alarming de-
velopments in the American economic
world. Because of WaShington'S pre-
occupation with the tariff and correlated
subjects, Senator S2ckett's remarks were
rather lost in the national news shuttle.
But Senator Arthur H. Vanderberg, Re-
publican, of Michigan, has now had
the Louisville address published in the
Congressional Record. He predicts that
IT Will receive countrywide attention
and perhaps be the forerunner of legiS-
lative consideration at washington.
Senator Sackett charges that the
new wealth. which has piled up in
the United States since the World War
has turned the flank of the protec-
tive barriers provided by national legis-
lation." He asserts that the Sherman
antitrust law has been converted into
of great industrial holding companies.
The Esch-CumminS transportation act,
the Kentucky Senator afflrmS, is today
powerless to protect the public against
railroad security combines. Chain"
banking, Mr.. Sackett contends. Is de-
stfoying the McFadden act. Unless the
basic American economic principle of
equality of opportunity is to be nulli-
fed, he insists there must be much
farther reaching protective legislation.
Wants Public Views.
Senator Sackett does not signal his
intention Of proposing new laws such
as he holds to be vitality necessary. His
avowed purpose is to get the country
to thinking about the situation. and
after it has weighed its pros and cons
to let Congress know what 1t believes
ought to be done in a preventive or
remedial direction.
Wealthy before the war" says
Senator Sackett, "in the sense Of actual
ownership of a substantial equity in
the material things of our own land,
we became fabulously rich as Nation,
through the enlarged ownership of our
own resources and heavy mortgage on
practically every other country. The
per capita wealth and income rose by
leaps and bounds, and the funds which
ciers of America gave new and en-
larged ability for the organization and
development of our economic structure.
"Our American Government has al
ways nurtured an idealiStic strain. Our
national policy has constantly sought
equality of opportunity for its people
and protection of the weak against the
strong. It has provided laws to dis
courage predatory effort of the I'M
y<gafv1 OSV 1nI avAA y1n Il hnc hnA
a definite trend toward the betterment
of conditions of our people in its ma
tional legislation. While we were
debtor nation the legislative restraints
which our exigencieS required, were eX-
ercised If I may so put it, in crushing
group power, when exercised by agree
ment, against the common veal.
1--WE passed the Sherman act to pre-
vent agreements in restraint Of trade.
The dangers that we Saw-dangerS
that menaced those unable to protect
hemSelves-lay in the fact that men
or companies OF means could combine
through agreements among themselves.
The Sherman act was the legislative
preventive and rendered the in
dividual units cooperating in such
undertakings punishable by indictment
The same general principle was in
volved in the establishment of the
Interstate Commerce Commission, under
the transportation acts, which served
to hold in check the railroad systems
Of the country and assure equality of
benefits to all users of those systems.
Laws to Protect Innocent.
''Either our State or national legisla-
ton gave like assurance in other lines,
as the+laws that govern the investments
OF savings institutions disclose. The
individual depoSitor was helpless in re-
gard to the use made of his savings by
those in control Of his depository, and
so legislation stepped in, in way sup
posedly not to interfere with honest
enterprise. through laws to project the