Evening star., 1937-06-07
|BROOK|NGS REPORT
'URCESFREED0M
FOR j. S. AGENCIES
Independence of Control by
President of Regulatory
Bodies Is Sought.
EIGHT PROPOSALS
MADE TO BYRD UNIT
Expanded, Stronger Federal Trade
Commission-New Court
System Asked.
BY WILL P. KENNEDY.

ClCS SIlOulu llOt NC given w oAAS NAAASA
Executive, the Brookings Institution
warned today in submitting eight def
mite recommendations to the Senate
Committee on Government Reorgani-
cation, headed by Senator Byrd, Dem
ocrat, of Virginia.
The report emphasized that these
independent agencies regulating prl-
vate business enterprises are really
agents of Congress performing the
same functions Congress would If it
had time; that they are lin a real
sense creators of law, rather than en-
forcers," and almost without exception
ARE handling large questions OF So
cial and economic policy which are
too complicated detailed and chang
Ing In nature for Congress to deal
with except in broad outline"
Stronger Trade Body Urged.
Enlarging and strengthening the
Jurisdiction of the Federal Trade Com
mission by transfers from the Justice
and Agriculture Departments also was
recommended.
A new foreign trade promotion CO.
ordination arrangement between the
State and Commerce Departments
and transfer Of the Weather Bureau
to the Commerce Department or some
agency directly concerned with trans
portation were two of the three recon-
mendations by the institution regard
ing agencies engaged in promoting
commerce and industry.
The third urged corrections for lad
ministrative defects" in the granting
of patents, trade marks and copy
rights, attributable to the scattering
of activities and procedural shortcom-
jngs."
Senator Byrd in making public a
summary of chapters and 10 of the
report the Brookings Institution is
making in fulf1llment of its contract
with the Byrd committee, pointed out
that this latest study covered more
than score Of Independent boards
and commissions and executive de-
partments and their divisions which
are engaged in Government promotion
and regulation of business.
Eight Recommendations.
Regarding regulation of business,
the report explained that there is a
clear line of demarcation between
types of economic situations controlled
by Government departments and
those regulated by independent boards
and commissions" Broadly speaking,
the report draws this line between %
situations in which the formula OF po-
lice regulation, Standardization, grad
ing, etc, is largely applicable, and (2)
regulatory situations which involve
questions of public policy, complicated
economic relationships and problems
Of public management
The eight recommendations regard
Ing agencies concerned with regula-
ton Of business-in the interests of
economy and efticiency-are:
l. Reorganization of the Federal
Trade Commission to eliminate con-
fusion of powers and strengthen its
functions.
2. Transfer of certain unfair trade
practice functions s-including control
over packers and over food and drugs,
In so far as unfair competitive meth
DDS are involved-from the Agricul-
ture Department to the Trade Com
mission.
3. Transfer of control over COM
modify exchanges from the Agricul-
ture Department and the Commodity
Exchange Commission to the Trade
Commission.
Abolish F. A. c. A.
T. Transfer of Justice Department
powers over monopolies and restraint
OF trade under the antitrust act to
the Trade Commission, except trial OF
criminal cases.
S. Transfer of Bureau of Air Com
merce regulatory functions to the In
terstate Commerce Commission or
some agency in the general field OF
transportation.
6. Abolish the Federal Alcohol Ad-
ministration, members OF which have
not yet been appointed, and continue
alcohol control in the Treasury De-
partment, at a saving estimated by
experts up to $250.000. As an alter
native-divide the control according
to (D pure food and drugs, co So
cial and (c) trade aspects, and dis
tribute it accordingly to the Pure
Food and Drug Administration, the
Treasury Department and the Trade
Commission.
7. Control over the policy and ad-
ministration of the Federal regulatory
bodies should not be given to the
Chief Executive.
New Court System.
3. An administrative court system
to enforce regulatory laws, a code of
administrative adjudicatory proceed
ures, proper system OF enforcement
methods and simple but adequate
system of appeal. Experts say this
recommendation should result in
economies which would offset by far
any moderate additional costs in
volved.
This same chapter touches on sew
eral agencies in the field of power.
minerals and finance, which have been
or will be discussed more fully in
other chapters, Senator Byrd ex-
planned.
Discussing its differences with the
Brownlow Committee report regard
Ing independent regulatory agencies.
and particularly regarding its rec
ommendation that Congress should
not surrender control oyer these agen-
cies to the President, the report said:
In case the independent boards
and commissions were placed within
executive departments, there un-
doubtedly would be strong control es~
tablished over sublegislative and ad-
ministrative activities of the regula.
tory authorities.
Arguments for Capitalization in
the President applv in almost equal