Evening star., 1933-02-01
HOUSE MAY WRECK
TRADE COMMISSION
Proposal, if Adopted, Would
Curtai| Work Begun by
Woodrow Wilson.
Continued From First Page.)

commission appropriation may be, and
1t would appear that in view of the
committees report the chances are
against the adoption Of the budget
recommendation for this commission,
1t is expected that the Senate will take
firm stand against such a reduction.
Senator McKellar Of Tennessee, one
Of the ranking Democratic members Of
the Senate Appropriations Committee,
said today he was entirely out Of
sympathy with any proposal which
would make 1t impossible for the Fed
eral Trade Commission to carry out
the purposes for which 1t had been set
up. The Senator is strongly in favor
OF economy In government expeAdi-
ture, but said he thought the saving
should be made elsewhere"
Senators Wheeler of Montana and
Dill Of Washington. both Democrats.
also declared their opposition to the
priations for the commission by more
than half Of the budget estimate.
Includes Old Bureau.
The economic divisiorls of the Trade
Commission is the successor of the old
Bureau Of Corporations, first es.ab-
lished during the administration of the
late President Theodore Roosevelt At
the time of the establishment of the
Trade Commission in 1914, on recon-
mendation of Woodrow Wilson. the
powers. duties and personnel of the
Bureau of Corporations were trans
ferred to and became part of the new
commission. The old bureau, indeed,
hoH fhn yic1o of Hn
new commission.
When the transfer Of the personnel
was made on March Is. 1915, there was
a staff Of SO engaged on special bust
ness investigations. The commissions S
estimate for the fiscal year 1884
provide for a staff Of 102 to handle
such investigations-or only 9 more
than were engaged in that kind OF
work nearly 20 years ago.
In addition to striking from the ap-
preparation bill all funds for the main
tenance Of the economic staff of the
Trade Commission. the committee bill
has made further slash of 100000 in
the funds estimated by the budget as
necessary for the other or regulatory
activities of the commission.
Other Activities Hit.
These other activities include inves-
legations by the legal or examining staff
of violations OF the section of the act
creating the commission covering un-
fair methods Of competition in busi-
ness, the taking Of testimony and trial
of such cases in which formal COM
plants have been issued by the trial
attorneys and the review Of cease and
desiSt orders of the commission in the
United States Circuit Court of Appeals
and the United States Supreme Court.
The annual report Of the Trade Com
mission shows that ON June 80, 1882,
the close Of the last fiscal year, 440 ap-
plicationS for complaint were docketed
and 208 complaints pending for trial or
In the course Of trial. The proposed
cut in appropriations will reduce by at
least so per cent. it is said. the person.
mel engaged in this work and seriously
retard or altogether prevent its proper
prosecution
The Trade Commission, in the inter-
ests CT governmental economy, volun-
tarily cut its own estimates for the
next fiscal year from $1,466, $780, the
appropriation for the present fiscal
year, to 81 800 900. reduction Of more
than II per cent. When the Budget
Bureau finished up with the estimates
1t had reduced them to $1.l09, ,5OO or
q cut of about "a per cent frcm the
appropriations for this year.
Greater Cut Demanded.
If the object Of the incoming ad-
ministration is to cut governmental ex-
penditures Is per cent, 1t looks as
though that had been accomplished so
far as the Federal Trade Commission
was concerned. when the Budget BIZ
Ire Orly d
proposed by the House Committee to
make a cut of IS per cent in the an-
preparations for the commission. In
the opinion Of many members Of the
House and Senate, that Is going much
too far
The Trade Commission, it was pointed
out by its supporters, is the principal
governmental agency to protect the
Government from exploitation by dis
honest business. 1t has been testified
often that the commission action in the
so-called Pittsburgh plus case against
the United States Steel Corporation
saved the farmers of the Middle West
alone $3O,000,000 a year. Some of the
most important cases of the Depart
ment of Justice under the Sherman
antitrust act have grown out of in
vestigations conducted by the commits
sion. which were referred to the De-
partment of Justice. Among these were
the cases against the Cement Manufac-
turers' Protective Association, General
Outdoor Advertising Co., Maine CO.
operative Sardine Co.. Southern Hard
ware Jobbers' Association, Maple Floor
ing Manufacturers Association, Radio
Corporation, and Bot and Nut Associa-
tion. In nearly all of these cases de-
crees were obtained by the department.
The House Appropriations Commit
tee, In its report en- the appropriations
bill, declared that it did not approve
OF having the commission engag. on
new investigations during the coming
year. Among the investigations pro-
jected were those into the financial
practices of corporations, the effects of
antitrust acts with relation to the
petroleum, natural gas, coal and lum-
Der industries, the effects on business
and the general public Of quantity dis
counts, selling below cost, reciprocity in
dealing, brand advertising, guarantee
against decline and wholesale and re-
tail price stabilization.
Party Pledges Recalled.
In view of what has happened in
connection with many corporations and
their financial setting, the proposal of
the commission to inquire into the
facts regarding the form, adequacy and
accuracy Of published financial reports
made to stockholders and others by
corporations engaged in interstate COM
merce might prove CT very great value.
Furthermore both the Democratic and
Republican national platforms promised
their respective parties would advocate
the protection OF the investing public,
10 of al
advertisements Of foreign and dcmes-
| tic stocks and bonds, and a thorough
study of the conditions which permitted
the credit Of the country to be made
available for wholesale speculation in
securities, resulting in ruin to millions
Of investors
The late President Wilson delivered
special message to the Congress in
joint session in 1914 urging the estab-