Evening star., 1932-10-11
BUSINESS INVASION
HELD j. S. SUICIDE
Bar Association Commerce
Committee Says Policy Will
Destroy Institutions.


The American Government is de-
stroying itself by invading the domain
of private business the American Bar
Associations Committee on Commerce
reported today.
The committees report. adopted at a
meeting in the United States Chamber
of Commerce Building, held that the
invasion of private business by gov
ernmental agencies forces citizens into
the Government service and in the
course of time will destroy the ability
of the individual to support the Gov
ernment by taxation"
Much OF the encroachment on priv
ate business. the report says. Is under
the guise of regulation power grant,
ed by the Constitution, but a vast
amount of it results from the ambition
and zeal Of departmental bureau heads
to carry on private business enterprises
supplemental to their lawful and le-
gitimate governmental activities and to
expand and magnify the Importance of
their departments.
Illustration of Charge.
This is illustrated" the report con-
tinued, by those departments, of which
there are many. which operate found
ries. machine shops. architectural and
engineering Offices, commissaries, res
taurantS hospitals. ice plants and other
businesses too numerous to msnticn.
"A necessary concomitant of these
unnecessary and illegal activities is to
increase the number Of governmental
employees SO that 1t is now estimated
that of all persons gainfully employed
in the United States. one out of every
nine or ten is Government employe.
For the last fiscal year it is estimated
by competent authorities that $4,000
100000, or approximately one-fifth of
the total annual income Of the Nation,
was required to operate the machinery
Of government. This sum amounts to
approximately $ll0 per year for every
man. woman and child in the country
The report further contended that
business stagnation, attributed, in part
at least to huge and increasing costs
OF government, has seriously reduced
tax revenue end necessarily increased
government borrowings, increased taxa
ton, and new methods of taxation,
which. in turn. have added to the pub
lie distress and augmented the stagna-
ton"
1t was held that the question in
volved is political rather than judicial;
that many acts Of Congress and the ex-
ecutive officers Of the Government are,
IN many instances, usurpation of Con-
stitutional powers. but the injured in
dividual is powerless to protect himself
a direct injury.
The issue in the main" the report
added, must be tried before the bar OF
rublic opinion and the Congress and
TIE executive department must be made
to realize that the Constitution is bind
ing upon them and that they are SUBJ
Ject to its limitations an drestrictions
even though their acts may not be
subject to review by the courts"
AS specific remedy it vas urged
that Congress cease making appropria-
tions to support governmental
functions and activities.
Antitrust Law Changes.
The committee also recommended
amendments to the antitrust laws to
provide for the advance submission OF
contracts to Federal agency and for
exemption from the provisions of anti
trust laws in the event contracts Sc
submitted either are approved or not
disapproved
further recommendation was that
transportation Of property for hire by
motor trucks over the public highways
be subject to reasonable legislation and
that the operator of such vehicle
either as common carrier or a con-
tract carrier, be subject to licensing.
In connection with the report oil
the committee, Rush C. Butler, its
chairman, said the purpose of the
committees amendment to the anti
trust bill is to relieve business men
from the fear of criminal prosecution
which now deters them from entering
into lawful contracts and at the same
time safeguards the rights of the pub
lie against unreasonable restraints anc
monopoly by conferring certain add.
tional powers upon the Department OF
Justice and the Federal Trade Com
mission"
He also said the committee Is moi
unmindful of the fact that in order tc
obtain the full benefit CT the proposed
legislation there must be reorganiza.
tion CT the Federal Trade Commission
David L. Podell of New York City
said that while this nation is opposed
to. unrestrained monopoly and COM
bihation, it is likewise opposed to un-
restrained and unregulated competi-
| ton. Some measure of cooperation
must, under our laws. be permitted
which will harmonic the extremes OF
monopoly and competition Some
where between these two extremes lies
the course which antitrust legislation
| will in all likelihood pursue
1T does SEEM" he continued
that so long as we continue to enforce
the competitive principle as our guide
so long as we Danish price fixing tc
prevent throttling of the market WI
can well afford f. liberalize the law sc
/ as to permit e cooperative effort il,
the matter Of regulating production. II
| is just as absurd to contend that there
| is a market when there is nothing bu,
sellers as it is to contend that there is
market when there is nothing but
buyers"