Evening star., 1936-01-20
TRADE |NQU|S|T|ON
SEEN UNDER BILL
BroadneSS of Commerce In.
vestigation Measure Is
Scrutinized.
ny DAVID LAWRENCE.

By DAVID LAW W1EGNO1s
Sinclair Lewis says 'it can't happen
here" but unfortunately it is begin
ming to happen. Federal tnquisition
into the private affairs, books. records
and transactions of all persons ana
partnerships, as we'll as corporations
and associations, is about to be estap-
lished as q right of the Federal Trade
Commission.
A new Wheeler -Rayburn bill Is IN
the making which would give Fed
eral commission more power than the
N. r. A., more power than the Sc
curities act, more power than the
Copeland food and drug bill, more
power than any Federal Trade Com
mission act or antitrust law OF the
past, and more inquisitorial rights
over the private affairs OF the citizen
than anything now on the statute
books.
The first draft of this proposal has
been introduced in both Houses by
Representative Rayburn of Texas,
Democrat, chairman of the Interstate
Commerce Committee, and Senator
Wheeler of Montana, Democrat. chair
man of the Senate Committee on
Commerce.
Breathing Spell End Seen.
Last session, the bill passed the
Senate, wes subject to motion to
reconsider when its true nature was
discovered and thereafter was never
taken up. The House did not act at
all. This time the drive is on with
the full support of the Federal Trade
Commission, which helped draft the
bill, and the Roosevelt administration.
All doubt can now be removed.
There will be an end soon to the
"breathing spell" promised last Sum-
mer by the President when he said his
legislative program had reached Sub
stantial completion"
While the new bill is supposedly
limited to the prevention of deceptive
acts" by persons and corporations en-
gagged in commerce" and commerce
is defined as business among the
States" there is absolutely no limita-
tion to the powers of inquiry which
the Federal Trade Commission would
acquire. The right to 60 on fishing
expeditions among the papers and
books of the citizens on mere Sus-
picion is obviously to be derived from
the sweeping phraseology of the pro-
posed law.
Phraseology Broad.
The present law would be amended
in several particulars and by words
that seem innocent enough on their
face but carry a world Of meaning
and power. Thus, section is to
read as follows
THAT unfair methods Of competi-
ton in commerce and unfair or de-
ceptive acts and practices in COM
merce are hereby declared unlaw-
full"
The new language is unfair or de-
ceptive acts and practices" and the
commission is directed to impose PEN
alties on anybody or any firm or
corporation that is held by the COM
mission to be guilty of such de
ceptive acts and practices"
What is "deceptice act"? It's
new word in the law and it is far
broader than dishonest" or fraud
ulent" and much more inclusive
There are errors committed frequently
with to intention to deceive. yet
the proposed act draws no distinction
between wilfully and innocently con-
summated acts that tend to mislead.
Thus, in advertising, it has been
held by the Supreme Court of the
United States that putting" ones
wares is legitimate and does not con-
stitute an unfair method Of competi-
ton. Would putting" now be re-
garded as deceptive?
Heretofore, competitor could file
q complaint showing that he was in
jured and, if the deception did work
injury to him, Federal action could
be taken. Now, under the proposed
law, it isn't necessary for competitors
to be affected at all. On the broad
ground of public interest,"" the Fed
eral Trade Commission can take unto
itself the power to determine whether
the public is allegedly being injured.
Police Force to Be Needed.
To get evidence. the Federal Trade
Commission will have to become q
new police force as big as the De-
partment of Justice, If not bigger,
and doubtless with its own corps of
detectives and investigators and
sleuths. For the proposed law gives
the commission or its agents access
to. for the purpose of examination,
and the right to copy, any documen-
tary evidence. Of any person, partner
ship or corporation being investi-
gated" The commission, moreover,
is to have power to subpoena the pro-
duction Of all documentary evidence
relating to any matter or any per-
son. partnership or corporation being
investigated by it,"
ANY matter" is a broad term. and
the inquisition could be as compre-
hensive as the Government agents
wish tv make it. Also, If there is any
doubt that the commission is to
acquire unprecedented powers, the
following paragraph, which is one
OF the most amazing ever contained
IN proposed law, is conclusive Of the
intent Of the bill:
The Congress hereby confers upon
the commission so much of the auxil-
larry power of Congress to obtain in
formation in aid of legislation as may
be necessary to enable the commission
to carry out the provisions of section
six"
Delegates Powers.
This is abdication Of the legislative
function without qualification. The
section referred to is the inquisitorial
section, which used to cover only
corporations and was limited in its
scope, but now covers everybody in
the country, either as an individual
or in his relation to any business or
profession from advertising to law and
from the sale Of insurance to the
sale of groceries.
Also, there is q unique feature in
the proposed law in that upon the
direction of the President or either
house Of Congress. or upon its own