Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-01
.NYE URGES STICK
TO CURB CAPITAL
Senator Complains of Chain
Stores and Threatens
Legislative Action.
By the Associated Press.

By the Associated Press.
BALTIMORE. May I.-Use Of big
stick to torcs trade practices and ito
halt this vicious program of further
concentration OF wealth and power
was called for last night by Senator
Nye.
In an address to the Maryland Re
tail 0rocers' Association, the North Da-
kota Republican complained vi the
growth OF the chain-Store system ano
gave notice Of legislation he would IN
troduce next session to give the Federal
Trade Commission more active machlh-
cry in combating trusts.
Senator Nye named as "a Leaning
cause" Of unemployment the lack vi
anything resembling All interest In hu-
manity by those few who have come
into control OF industrial enterprises. .
However. lie WAS optimistic VI
change III this attitude.
objects TO Legislation.
In his new legislation. Senator Nye
said he hoped 10 decentraiizc the FED
eral Trade Commission; 10 provide PEN
aities which can Ne more speedily as
sessed upon those guilty Oh unfair trade
practices, and TO make the courts more
erai Trade Commission Investigations.
How these trusts organize and oper-
ate their dangerous power, said Senator
Nye land the conditions making them
possible, is perhaps best shown by Tie
testimony OF the president OF the Amer
lean Steel T. Wire trust before the III
dustrial Investigation Commission.
He related how lac started In lie
poor boy and worked 30 hours each
day. always saving something from ms
earnings his confession was q tribute
TO his executive head lie accumulated
until he was strong enough " manipu-
late u trust; he tells how he studied the
project for one year before undertaking
It; his first step was ~ gain control Vi
all patents used III producing steel aho
Weaves which he Was 10 manufacture
he then put spies on all The steel AND
wire factories ia tie country; when
he asceTtained about the amount u
business each was doing he made ali OIL
fer for the plants and compelled sur
render; 81 his large concern swallowed
up the smaller ones: lac acknowledged
he dismantled these small concerns and
threw men out OF employment.
Spread Of Chain System.
Discussing chain stores, the North
Dakota Senator said:
Chain stores are being rapidly estab-
lished In every quarter. Their purpose
cannot be ignored Thousands upon
thousands OF independent merchants
are doomed 10 failure by reason of the
competition which these chains will
bring to bear III order TO gain mo-
nopoliSJic control over retail distri-
button.
"A town Of my acquaintance, which
Is only one VI many suffering such AT
experience, once had three splendid de-
partment stores. three strong banks
grocery stores. meat markets and the
! kindred establishments OF a progress
siFe community. All OF them until
q few years ago were owned by resi-
dents of the community. Their owners
were making proritS. These profits III
turn were being reinveSted in the COM
| munity. 70 the advantage OF better
school and community Accommodations
To-day the chains have all but elimi-
| mated the many independent mer-
| chants. The three locally owned banks
are supplanted by one lone bank, q chain
! bank, owned and controlled by people
so fer removed from the community
/ that they have no conception of the
merit OF individuals IN the community
and the needs OF the community. That
community pride which was once sc
manifest there is largely gone.
Benefits Are Disputed.
But some one interrupts. "these
chains are performing great service
10 the buying public. II Is makine
( merchandise cheaper TO the consumer.
do not agree that this is true. There
may Dc Items purchasabie for les:
| through this system at times. but on
| the whole doubt that chain merchan-
! III. ing Is lending TO any new o. ortunity
| or advantage. But for the mere sake
| VI the argument let us presume thai
the chains do afford some slight saving
TO the buying public. How long viii
| that continue? Just so long as there
remains any competition on the part Of
| the independent merchant will the
| chains fight for an advantage. Bu
with that competition finally eliminated
what then? Does any one know of q
monopoly that has existed for AN,
| other purpose than that Of g3uging til,
buying public for ali that they can get
for all the proIlt that the trafiic vii
| bear?"
! Canadas income tax returns for thu