Evening star., 1937-06-14
WALSH WOULD ADD
TO F. 7. c. POWER
U. S. Reorganization Issue
to Fore as Brookings Re-
ports on Publicity.
BY WILL p, KENNEDY

Democrat, of Massachusetts, proposed
legislation to broaden the Federal
Trade Commissions authority to reg
ulate certain trade practices in in
dustry and the Brookings Institution
reported to the Byrd Committee that
the Federal Government paid $751;
oao in the 1886 fiscal year to persons
engaged in full-time or allocated part
time publicity work
These developments opened a week
In which three different committees
from Senate and House are planning
10 consider reorganization measures
Senator Walshs Trade Commission
proposal is the second advanced for
tnat agency. Last week Senator
Byrd, Democrat, of Virginia, chair
man of the Senate REORGANIZATION
Committee, introduced legislation to
enlarge considerably the powers of the
Trade Commission-bv transferring
certain jurisdiction from Agriculture
and Justice Departments-as a semi
judicial agency acting for Congress,
based on recommendations of the
Brooklngs Institution, which is max
ing a series of co-ordinating studies
for the Byrd group.
1888 Bill Revised.
The new Walsh bill is a revision
OF one he introduced on May l, 1898,
about two weeks before the introduc-
tfon of the national industrial recovery
act. He explains that he had pre-
pared this revised draft several weeks
ago before the Supreme Court had
rendered its decision on the Wagner
national labor relations act and that
he used a broad definition of Inter
state commerce. which seems to him
to be entirely constitutional under the
opinion handed down by the Chief
Justice in the labor relations cases,
The Walsh bill would increase the
Trade Commission from five to nine
members to provide for its increased
duties. In addition to the broad def
milton of interstate commerce, it am
plfes the definition of unfair
methods of competition and prohibits
unfair trade practices
1t does not authorize governmental
price fixing, but permits the commits
sion to approve cooperative agree
ments in industry, after hearing,
provided such agreements are reason
able and economically sound, Senator
Walsh explains, and will not result
in price fixing or in selling price in
excess of a fair and reasonable figure.
This basis would take into consid-
Grafton the necessity for fair and
reasonable compensation to producers
and distributors of average ability and
efficiency and to labor.
Prompt Action Not Seen.
While the President is said to be
tnsistent with both Senate and House
committees that his reorganization
proposals should be acted upon at the
present session, Senator Walsh frankly
admitted that he is not hopeful OF
having the Trade Commission bill
acted upon promptly. But, since the
administration has under consIdera-
ton a study of antitrust laws, un-
fair trade practices and unfair methods
OF competition in industry, he hopes
that his proposal may be considered
pN
nection with it's own studies. so that
its provisions may be embodied In any
legislation prepared along these lines.
The Brookings Institution report
on publicity agencies cited the law
as saying that no money appropriated
by Congress shall LC used for pay
ing any publicity expert unless spe-
cifcally appropriated for that pur-
pose.
mo specific appropriations for pub
Ncity experts have been made the
report said, but it is safe to say this
law did not put an end to any pub
licity activities nor has it prevented
employment of personnel for that
purpose"
The report differentiated between
two types of information service
public reporting, including annual re-
ports, reports on expenditures and re-
search reports, and publicity activity
which it defined as gathering, writ
Ing or editing of material for dis
tribution to newspapers, magazines
and mother non governmental publ
Cations
Information Incomplete.
The report emphasized it was based
on incomplete information. including
only answers to questionnaires re-
eeived from agencies operating in the
District of Columbia, excepting the
Tennessee Valley Authority. No re-
port was received on any phase of the
Works Progress Administration in
formation services
The reports received showed upward
Of 300 persons employed, wholly or
partly, in publicity work in Washing
ton at salaries ranging up to $4,000
year, and that in the three months
ended September 30, 1886, Federal
agencies here released 4794 articles
and printed combined total of
7,l39,457 copies.
Publicity experts are carried on the
rolls under other designations, the re-
port said,
Furnishing facts is undoubtedly a
proper duty of a Government agency"
the report concluded, but expendi-
tllre of over half million dollars for
personal services and issuance Of a.
fo4 separate releases in four months
seems to indicate that, if possible
some controlling mechanism should
be set up"
Executive Control Suggested.
The report suggested "budgetary
and administrative control by a su-
perior executive authority as the
most feasible method of keeping
publicity agencies within reasonable
limits
y While the Brookings investigator;
report that 80 far as is known tno
Government has not made any ex-
penditures for the purchase of radio
tiThe," they state that lit has made
extensive use of the radio and con-
siderable amounts have been spent lr
connection with the preparation OF
programs and the manufacture OF