The Washington times., 1936-06-22
TRUST PLANK
PR0P0SEDBY
WHEELER

CHdTdcLeTtStng the Repu0H-
can Gntimonopoly plank as
"U1gue and general" Senator
Wheeler (DD, OF Montana,
urges that the Democrats take
the initiGtive in q tdrreGching
antitrust n1oUe.
By BURTON K. WHEELER
U. 8. Senator from Montana
Written Expressly for International
News Service
PHIL ELPHIA, June %
GN.S) Much sound and fury
has lately been raised about
InonopolieS and the antitrust laws.
The Republican party has in its
new platform blank which de-
clares in part that:
I'VE favor the vigorous en-
fOrcement of the criminal laws
as well as the civil laws against
mOnOpOlies and trusts and their
officials and we demand the
enactment Of such additional
legislation as is necessary to
make 1t impossible for private
monopoly to exist in the United
States"
CALLS 1T VAGUE
This is rather vague and gen.
eral and, like most platform
planks on the subject for many
years, commits the Republicans
to no definite action. 1 should
like to leave the realm of gen.
eralities on both sides and suggest
three specific proposals which
ought to form the backbone Of
any program to enforce the spirit
Of the antitrust laws.
While these proposals may
sound far reaching in their ef
fects, they amount to the only
practical method of carrying out
the expressed intention of the
existing antitrust laws. No busi-
ness which is now being operated
in accordance with the spirit and
purpose of the laws which have
been on the statute books for As
years would be affected by these
changes.
The first, and most important
proposal, would tend to dis
courage the great size of corpora
tionS. When business activity be-
comes concentrated in the hands
of very small number of cor
porationS, as is the case today, no
regulation through antitrust laws
can hope to be effective.
Explains Tax Plan
A tax, in addition to the reg
ular corporation taxes, should be
levied on the amount of profit a
corporation has left after paying
its operating expenses, but before |
interest and dividends are paid.
This tax should start at about 2
per cent when this net operating
profits amounts to $3,00O,000 a
year, and graduate upward to SO
per cent for those Is or 80 cor
porations whose net capital is
over $50,O00,0O0 yearly.
This imposition of such a tax
would tend gradually to decrease
the size of huge business units.
The second proposal deals with
Section of the Clayton Act,
which has been part of the law
since 1914. Section Z outlaws
mergers and acquisitions Of Sc
curitieS and assets Of corporations
where the effect would be to
restrain trade.
Language is Plain
- The language is it stands Is
plain upon it's face and seems
strong enough to halt the disaS-
trous trend toward concentration
of economic power. This language
should be amended to reState what
everyone thought it meant before
the Supreme Court of the United
States opened the door through
which the corporation lawyers
have been leading the larger corpo-
rationS to escape entirely from its
provisions.
The expressed intention of Con-
gresS was nullified and Congress
should reaffirm its position in
such way that even the Supreme
Court cannot fail to see what is
meant by its plain language.
The third proposal is to prohibit
use of the "basing point" method
of pricing, whereby members of
the steel, cement, lumber and
dozens of other industries are able
to fix prices so that every one must |
pay the same price no matter from
whom he buys.