Evening star., 1933-01-29
Virtual Junking of Agency Is
Seen as Result of Drastic
Fund Cut.
$50 LET OUT IN YEAR;
so TOGO BEFORE JULY !
Report to House Recommends
$4,000, Slash of $956, 500 Un-
der Current Appropriation.

The Federal Trade Commission will
be required to dismiss nearly 300 en-
ployes, bringing it's force to little more
than 100 persons, on the basis of the
appropriation of $4,000 recommended
for the next fiscal year, in the In
dependent Offices funds bill, reported
to the House Friday, it was said at
the commission yesterday.
While there was an unWillingnesS
on the part of any one in authority
to be quoted at this time, it was made
plain that it is felt the appropriations
slash of $956,5OO under the appropria-
ton this year virtually would amount
to junking the commission.
Already during the present financial
year $50 commission employees have
been dismissed and so more will go
before July l. these reductions being
necessitated it was explained, even
after administrative furloughs ranging
frcm two to nine months had been en-
forced among various groups OF en-
ployes.
Under the budget estimate of ST.
109,550 for the commission, 1t would
have been necessary to dismiss 81
workers starting July l and the added
cut proposed by the House Appropria-
tions Committee would mean that 200
more must go. it was said.
Had Sought S1,30O.O0O.
The commission had sought $780,
900 for the forthcoming fiscal year,
In comparison to the appropriation
of Sl,466,500 this year. which had
made its available funds about a
million and half dollars. Two
notable inquiries-chain stores and
power-which the commission has
been conducting for a long period, will
be completed at the end OF June. and
three others were contemplated to de-
termine if new legislation was neces-
Sary.
One of these was designed to go into
the effects of the antitrust acts with
relation to the industries engaged in
the exploitation of petroleum, natural
gas, coal and lumber, and the advan-
tageS or disadvantages to business and
the public of agreements by the indus
tries affecting competition.
Another was designed to cover the
financial practices of corporations en-
gagged in interstate commerce, but ex-
Guiding banks, common carriers and
public utilities. for the period prior to
and following the market crash Of 1929.
The third study proposed was that
covering quantity discounts, selling be-
low cost, reciprocity in dealing, brand
advertising, and wholesale and retail
price Stabilization.
Chairman Humphrey Dissents.
This is in addition to the routine
duties of the commission.
Commissioner William E. Humphrey,
who has just wound up a years term
as chairman Of the commission, had
dlSsented from the proposal of the
commission to initiate these investi-
cations which were estimated to cost
S333134, and for which the budget
had allowed $288,134. Commissioner
Humphrey took the stand that in de-
termining cost, time, scope and neces-
sity for these probes. the commission
was assuming responsibility he did
not think it should shoulder.
The committee also vetoed the pro-
posal, and added: The committee is
also of the opinion that the remaining
activities Of the commission can be
substantially curtailed without injury
to the public interest and has further
cut the budget estimate to the figure
indicated"
The House committee only cut the
budget estimate for independent estab-
lishments by S1,657,5 ,522. out of total
1Ci dll U! LIoie Ciidu ol'oo9'ooo'oou. Lie
commission cut amounted to approxi-
mately one-third of the slash, while
the rest, S1,000,000, came from the al
lowance for the Supreme Court Build
ing, which it was said would not re-
quire this amount.
The Federal Trade Commission had
trouble last year in the House, where
its appropriation was severely cut, but
got some help in the Senate. when
100000 was added for power and chain
stores inquiries.