Evening star., 1937-11-30

that high prices of food products were
the results Of profiteering.
Taken as Whole-the message to
Congress, the speech by Attorney Cen
eral Cummings in New York on the
'unsolved problems of monopoly" and
the behind-the-scenes activities of AS
siStant Attorney General Jackson, who
wants to be the leading trust buster
and who rode to Florida with Mr..
Roosevelt yesterday-it may be said
that the Roosevelt administration is
hesitating as between further regula-
tion and further ENCOURAGEMENT OF
business.
Mr.. Cummings speech in New York
was careful presentation of the facts
Of collusion in bidding as the Depart
ment OF Justice sees it. The theory
back of the address was that competl-
ton must be stimulated in order to
help the smaller units in business. But
what generally is overlooked is that
many of the acts of government lead
to increases in price to consumer and
that the large efficient units in busi-
ness, by reason of their volume of
sales are able to keep prices from
soaring.
Interest in Consumer
To put it another way, the admin
istration processes great interest in
the consumer but is not prepared as
yet to protect him against the conse-
quences of a policy of virtually sub
sldlzlng the smaller businesses that
cannot compete with the big ones
Instead of free competition versus
monopoly, the issue is really becoming
one of subsidized versus unsubsidized
competition
1t is no doubt difficult for people
outside of Washington to follow the
maze Of administration moves, some
Of which look toward the improve
ment of business conditions and 9TH
ers OF which must certainly tend
toward further generalization. Thus
the message on housing is a construc-
tive document and contains the ele-
ments Of big squirt in the heavier
goods businesses Of the country, where
employment can be rapidly absorbed
The steps which are to be taken to
encourage the building of small resi-
dences are in line with the recon-
mendations of many business men
who recently have conferred with
the President at his request. In a
sense Mr.. Roosevelt is following the
advice of business by his message on
housing, though there are some
phases of the policy that will bear
examination and certainly some
phases which may lead to unsound
practices if not carefully guarded by
a thoroughly supervised and honest
system of appraisal of real estate.
Everybody knows, however, that
lending funds for housing is not the
only thing that has to be done. Labor
costs are high, and the costs of build
Ing materials are high, too. How
much both of these are the result of
high wage rates per hour, on the
other hand, and the irregular flow
OF building contracts which the coun-
try has experienced, especially on
account of the prices of materials, is
something that the President does
not attempt to solve. He knows the
dilemma is there. and he treads lightly
on the subject. because it comes di-
rectly to the question of wage rates
and union activity.
Costs Must Be Cut.
Informally, of course, Mr.. Roose-
velt can confer with union leaders
and urge them, for example, to ac-
cept some plan for an annual wage
In lieu of high hourly or weekly rate,
but this is a long distance from put
ting such policy in effect. The
labor unions have not hitherto been
willing to accept suggestions as to re-
duced hourly wages from any out
side source, not even the Government.
Until, on the other hand, something
Is done to bring down building costs
the lending, of course, will be Of little
avail. The idea of an annual income
for employees in the construction in
dustry, which shall be as large II
not larger than that now earned by