Evening star., 1933-02-08
27 Specific Reforms Urged to
End "Pernicious" Effect
on Private Trade.
PR0BERS WOULD CLOSE
FEDERAL RESTAURANTS
Army Exchanges, Navy Stores,
Barge Lines and Paint Plants
Assailed by Investigators.

Depicting Uncle Sam as a tack-of-
all-tradeS whose varied manufacturing.
merchandising and professional activi-
ties are having a 'pernicious" effect
on private enterprise, special House
investigation committee today made
sweeping recommendations for taking
the Government out of business.
A report submitted by Representative
Joseph B. Shannon, chairman of the
Committee on Investigation of Govern
ment Competition With Private Enter.
prise, suggested ~ specific reforms.
from abolishment of most Army ex-
changes and Navy stores to elimination
OF Government-operated restaurants,
barge lines, paint plants and military
clothing factories.
Representative Cox, Democrat, OF
Georgia, did not concur with other
members Of the committee in proposal
to restrict Farm Board operations or to
ban barge lines.
Capitalization of architectural and
engineering activities of the Treasury,
veterans Bureau, War, Navy and other
departments so as to eliminate as far
as possible competition with private
architects and engineers; creation of a
cost-finding system to compare Fed
eral manufacturing costs with those Of
private industry; merger of all military
and civilian procurement services under
a new civilian control, and formation
OF standing committee of the House
to look for further reforms were among
other major recommendations.
Postal Reforms Asked.
The committee urged that the Post
Office Department discontinue tts
practice of soliciting parcel post busi-
ness" that parcel post rates be raised
that sale of so-called window" stamped
envelopes and imprinted" stamped en-
velopes be stopped.
Wider employment Of private physi-
clans, dentists and veterarians; greater
use OF private hospitals for veteranss
care and discontinuance of production
and sale Of serum, virus and other
biological preparations In competition
with private laboratories were asked.
Federal competition with private
bands, mucilage and stationery manu-
facturers, mapmakers, launderers, he-
litlm producers, lumber interests, ware
house proprietors, ship salvagers and
various contractors in the construction
industry was condemned.
abandonment of Farm Board stabil-
lzation activities. closer supervision of
co-operatives and parity of interest
rates Tor loans to co-operatives and
private middlemen were demanded.
"fTha Embellishments - l.
Government buildings and at Govern
ment expense" the committee said, "as
a rule constitute an unwarranted en-
croachment upon private business with
out benefit to the Government. Gov.
ernment building space without COM
pensation should not be devoted to such
undertakings. Government personnel
during Government hours should not be
used In such enterprises.
II Congress should at any time
decide that space should be made avail
able for restaurants in Government
buildings, the authorization should be
limited to the space itself. and should
not extend to the purchase of equip
ment with Government funds.
Cooperative Enterprises.
Should Government employees,
whether civilian or military, desire to
cooperative stores, cafeterias,
restaurants or other enterprises, they
have the right, of course, to do so, but
in no case should space in Government
buildings or on Government reserva-
tions be assigned to such co-operatives
unless other space is unavailable. in
which event space should be made
available to such co-operatives under
conditions, or, in other
words, at rentals which would be paid
by any other private rental enterprise.
Under no conditions should civilian
employees or those of the military es-
adjustments be used in the service or