Evening star., 1933-02-08


administration of these cooperative
organizations"
The committee formulated a series
of general principles" which 1t believes
could be applied as corrective to
certain governmental competitive &C
tivities already existing, as well as to
those which, in the absence Of some
definitely announced public policy
might develop in the future" The
principles follow:
Il. Entrance of the Government into
commercial and industrial undertek-
ings, backed by public credit and re-
sources and its military and civilian
personnel for the purpose of COM
peting with the business establishments
and the opportunities of livelihood of
its citizens, is in general repugnance to
cur fundamental democratic instltu-
tons End aspirations. Our people. II
they SO elect, might decide to own and
operate their own utilities, or might
declare any branch of industry or busi-
ness to be affected with public in
terest, and through proper legal meas
ures might acquire and operate such
economic institutions. Even such ex-
treme action, however. under our Con-
stitution, would have to be carried cut
without any confiscetion or impairment
Of private property or properly rights
but no constitutional authority exists
whatsoever which would permit the
Government deliberately to engage IN
business in any form which comp2teS
with and impairs the private business
OF its citizens. except for reasons OF
eccnomy or fiscal and military ex-
redicncy.
% From these fundamental conSld-
erations it clearly follows that the
Government, with the exceptions noteo,
should aprocure the commodities ana
facilities of all kinds which it requires
for its use from the commercial anu
industrial world.
Terms of Actual Costs.
"3. In the event of the continuance
of governmental competition, a Gov
ernment department or public agency
should not be permitted to compete
with any private business except upon
terms of actual costs They should De
required to maintain systems OF ac-
counting based upon all the proper eie- ,,
ments and accepted standards, sucn as
interes5 on invested capital, taxes anu
deprecietion, &c, oromarny IecosIa1eu
under similar conditions OF pISave
business operation. Other things belng !
equal il articles produced by SUCH
department or agency cannot be sup
plied except at a greater cost IMAM
through private agencies, the punnc
facilities for their production snoulo
be abandoned or devoted to some otner
purpose. - ,,s+,+,t,o,s On
the other hand, as condition TO ac-
ceptance of their bids for supplying the
Government with commoditles anu
services, must demonstrate tnelr coii
formitv with public policy as to their
stendards of working conditions and
industrial relations. -
"5. It is also Of fundamental I'M
uortance that all procurement agencies
and activities of the War, Navy ana
other departments of the Government
Should be ccnsoiids ted into one general
department. of SUP plies and munltlonS'
under civilian control and dlrectlon.
cs2 Items Affected.
Data collected by the committee
showed "at least 232 items OF traoe;
industry and personal and professional
services affected by governmental coH-
retition," the report stated.
sThe evidence in general indicates
that, the operations of the Federal GOV
ernment in the field of private enter.
urise has reached magnitude ana
giversitv which threatens to reduce the |
nrivate initiative, curtan the oppor-
tunities and infringe upon the earning
mowers of taxpaying undertakings, while
steadily increasing the levies upon
them" it was declared.
The proposed centralized Federal
architectural and engineering agency
would confne itself chiefly to admin.
istrative work, and the drawing OF
plans and local supervision OF pro)ects
would be left to resident architects anu
engineers.
nv the Army. Navy and Marine bands,
performances at private functions ana
any concerts where admission Is chargeo.
Manufacturing activities OF arsenals
and navy yards should be studled unoer
a cost-accounting system to determine
il private industry could do the same
work cheaper, it was asserted. i
Military stores, post exchanges and
conlmissaries are unnecessary, except at
isolated stations, the committee said,
and movie shows on military reserVa-
tions should be closed to the public.
Abandonment of Government uni
form and saddle plants at Philadelphia,
Brooklvn and Jeffersonville, Ind, was
recommended. Much river and harbor
construction work can be done by prl-
yate contract more economically, the
committee believes.
Army and Navy laundries and clean
ing and dyeing establishments should
be restricted to actual service require
ments" and should never interfere with
private business, the House was told
Prison industries should emphasize
training for prisoners rather than mass
production of products, the report said.