Evening star., 1936-06-17


DA''u AA"r'"'e' and industry by
either the Government or private
groups It radically changes our form
of Government. The Government
would be forced into a system OF
RECOMMENDATION of industry that would
not only be onerous to the people
but that might very well be ineft1-
cient. Certainly the greatest total
itarian, bureaucratic state the world
has ever seen would be the result.
"Price-fi fixing by private groups will
inevitably lead to price-flxing by
Government. 1t will be a Fascist
state in every sense of the word"
Senator Wheeler's remarks were
made over the National BroadcaSting
Co, system, entirely apart from any
discussion of the Guffey bill, but an
examination of the proposed price
fixing by a Government agency in
the coal industry will reveal that the
Montana Senator has described price
fixing as a vicious practice no matter
where practical.
Citizens Must Choose.
Our American society" he says,
"has been based on competition, but
the plain truth about it is that lately
we have been rendering lip service
to the competitive system, and in fact
have been getting further away from
it all the time. Whether or not we
are going to have the competitive
system or are going to have price
fixing, not only by industry but by
agriculture and labor and every other
section of trade and industry, is some
thing the American people must choose
while the choice is left open to them.
AT the outset it must be stated
that with the present personnel OF
the Supreme Court, we must have
a constitutional amendment before
we can do anything toward fixing prices
for either agriculture or labor"
Senator Wheeler is right. The
majority of the Supreme Court in
sist that if the powers of the people
are in any way abbreviated, the
court itself shall not do the abbrevi-
ating, but the people shall surrender
whatever right they yield through an
amendment to the Constitution. In
this way the justices who prefer to
err on the side of the people by CIV
ing the latter a chance to pass on
such vital issues as wage-fixlng and
price-fxing might well be classified
as the progressives who look toward
the liberal form of government, while
the justices who believe in amendment
by judicial construction" might be
said to be accepting the theory of
an all-powerful state which has pow
ers superior to those of the people.
Suggests Platform.
Senator Wheeler wants the people
TO pass on the issue Of price-flxing.
He proposes to both parties that they
consider this platform:
I'VE believe that there is inherent
IN all price fixing an economic fall
lacy. Prices, if fixed, are placed at
levels so as to protect producers gen.
orally, irrespective of their efficiency.
They are fixed at levels higher than
would result from the free play Of
competitive forces under the law of
supply and demand.
In our judgment, therefore, price
fixing cannot succeed because it Gre
ates and fosters the very things
which tend toward depression mad
economic catastrophe. 1t tends to
destroy the ability of the masses to
produce goods, consume them and re-
turn again to the market for more.
1t tends constantly to increase the
lack of balance between producing
power on the one hand and consum-
ing and purchasing power on the
other.
THE remedy, We believe, is return
to price competition and a strict en-
forcement of the antitrust laws"
Says People Not Agreeable.
The Senator says the American peo-
pie should know what they are get
ting into If price fixing is introduced
as a national policy and he adds that
he is not ready to believe that the
American people are yet willing to so
radically change their form of govern
ment"
The Importance of Senator Wheel
er's speech is that it is a challenge to
both political parties. His doctrine IS
not far different from that of Senator
Borah, Republican, who has been at
tacking monopolistic practices and
price fixing. As a matter of fact,
Senator Wheeler's proposals can
hardly be accepted without embarrass-
ment by the New Deal Administration
because the latter, through the NRA,
was willing to suspend the antitrust
laws and has now endorsed the Guf-
fey bill which establishes price fixing
as governmental policy in the coal
industry
Gov. Landon, the Republican nomi-
nee, has, therefore, a real opportu-
nifty to take up Senator Wheeler's
plea. 1t is in conformity with the
platform generalities adopted at the
Cleveland convention. Will the Kan
saS Governor make the same kind of
a speech in his campaign as has the
Montana Senator or will he be In
fiuenced by that section of industry
and business which wants price fixing
either by the Government or by its
own trade bodies so as to attain vir-
tual monopoly through Stabilized"
price that protects the inefficient and
gives a large margin of profit to the
efficient?
Wheeler has made a most striking
speech on the issue of fascism versus
Americanism because it is really at
heart a contrast between monopoly
and competition. The passage of the
Guffey bill will commit the New Deal
to The Fascist idea and the proposal to
include in the Democratic platform
declaration in favor of amending the
Constitution to give the Federal Gov
ernment power to regulate prices in
agriculture and industry is the nat
ural sequel to such move. The posi-
Liiit,r nf an outbreak on this issue at