Evening star., 1937-04-27
C0RP0RAT|0NB|LL
HEARINGS OPENED
Senator 0'Mahoney Presses
for Passage of Measure
for Licenses.
BY JOHN H. CLINE.


Confident that the Supreme Courts
decision in the Wagner cases has
dissipated doubts as to constitution
ality of his bill for Federal licensing
OF corporations, Senator OMahoney,
Democrat, of Wyoming, prepared to-
day to renew his drive for enactment
OF the measure.
He will meet this afternoon with a
subcommittee of the Senate Judiciary
Committee to hear testimony from
William z. Ripley, former Harvard pro-
fessor. The bill would require cor
porations doing an interstate business
to obtain Federal license, which
would be withheld until the concerns
complied with wage and hour laws and
working standards for women and
children.
Depend on Court Hearings.
Whether hearings on the licensing
bill will continue throughout the week
depends on the arrangements to be
made by the Judiciary Committee for
conducting its executive sessions on
the Supreme Court bill O'Mahoney
said his subcommittee might be SO tied
further hearings on his own bill would
have to be deferred.
The Wagner act decisions removed
the only arguments that have been
made against the validity of my bill -
Senator OMahoney declared Con-
ctSt NJ 10
years that it is within the power of
Congress to create corporations The
Union Pacific Railroad began as a
Federal corporation.
The only legal objection to the
present bill was that the Supreme
Court had held that manufacturing
was not commerce subject to regula-
ton by Congress- This objection was
eliminated when the court in deciding
the Wagner cases ruled that manufac-
turing activities, if they have a sub
stantial effect on the free flow of in
terstate commerce, are subject to such
regulation"
The O'Mahoney bill would come un-
der the jurisdiction of the Federal
Trade Commission. which would be in
creased from five to nine members
1t restates the collective bargaining
provisions of the Wagner act, which
would remain under supervision of the
Labor Relations Board, and prohibits
labor by children under 16.
Important Provisions.
Most significant of the licensing
acts provisions is that: Rates Of
pay of employees shall be increased
and hours of work shall be reduced
In accordance with gains in the
profits and in the production eff
cheney of industry earising from in
creased mechanization, Improvement
in archaeological methods, or from
other causes, to the end that employees
shall have an equitable participation
in the value of the output of industry
and that employment and mass-pur-
chasing power may keep pace with
the productive accomplishments of
industry"
While this provision is stated in
very general terms, it has been con-
strued as empowering the Federal
Government to enforce minimum wage
scales and maximum hour agree
ments, which cannot be done under
the Wagner act.
The OMahoney bill also prohibits
dishonest or fraudulent trade prac-
tees, or unfair methods of competi-
ton.
The bill already has been assailed
by representatives of business groups
and enthusiastically indorsed by or
ganized labor.
In a statement issued before the
Wagner decision, the National Asso-
citation of Manufacturers branded the
bill as "unsound in policy, invalid in
law and designed to re-establish "un-
limited and unfettered" Federal con-
troll over individuals as we'll as every
other form or method through which
business may be done"
The association objected particularly
to the fact the licensing provisions are
compulsory, not voluntary.