Evening star., 1938-01-02

6AChGHOUNU-
In quick change from somewhat
concilidtory tone, administration
spokesn,en during the past 10 days
hare berated big business Digor-
ously. selecting as their particular
target the go families" recently
listed as possessors of q controlling
portion of the Nations Dedlth.
BY the Associated Press.
Leon Henderson, economist Of the
Works Progress Administration, charged
in radio address last night that
monopoly and rising prices had brought
on the current business slump.
Mr.. Henderson, the third Govern
ment official to take the air within
. week to denounce price-fxing by
agreement, said the decline in pur-
chasing power was caused by price
manipulation and the concentration Of
ownership which makes monopoly pos
sible.'
His speech followed closely similar
utterances by Assistant Attorney Gen.
eral Robert H. Jackson and Secretary
Ickes.
The Henderson speech was coinci-
dental with demand by Representa-
tive Dies, Democrat. Of Texas for a
congressional investigation of recent
charges by administration spokesmen
that big business. dominated by 60
families, had brought about the busi-
ness recession in an effort ito liquidate
the New Deal"
Another development yesterday in
the discussion Of monopoly was the
statement Of Senator Borah. Repub-
lican, Of Idaho that action" was
needed to meet the problem.
Victims of Monopoly.
The blunt truth is," Mr.. Henderson
declared in his radio address, that a
large part Of the American economy is
no longer competitive, though not all
Of the rigidity by any means is due to
private controls"
The one-time economist Of N. r. A.
said retailers were not to blame for
high prices this fall, but that they "fell
heir to the increased prices and in
creased wages of the spring" He
added that they were always the VIC
Tins Of monopoly and rising prices.
Mr.. Henderson singled out the steel
industry. to illustrate his contention
that prices had increased beyond the
power Of the masses to buy. Some pig
irons, he said, are above 1929. cast
iron pipe. AS per cent above and
structural steel, Ill per cent.
Yet the steel industry is now op-
Grating at less than the 80 per cent
capacity" he asserted. How can any
one reconcile these stubbornly held
steel prices with the American system
and its concepts Of competition? How
car they stay up unless some private
group is holding them up?"
Cites Other Commodities.
Among other commodities which he
said were higher priced than in 1929
he listed paper products, auto tires,
coke, brick and tile, some lumber
products and drugs.
He took issue with the argument
that increased wages had brought
about the decline by strangling pro-
duction and keeping profits too low.
Citing q report of the National City
Bank for November, Mr.. Henderson
said 265 corporations earned at the
rate of 13 per cent Of net worth in
the first nine months Of the year, as
compared with 10.4 per cent in the
same period Of 1886.
How high do profits have to be. "
he asked, "f not to induce confidence.
at least to maintain . low level Of
grumbling?"
The Government, he said, had q
right to expect that the business sys-
tenn would make up for the reduction
in Federal spending"
Dies to Offer Resolution.
Representative Dies referred spe-
ciflcally to what he called astounding
charges" by Secretary Ickes and Mr..
jackson in saying he would introduce
q resolution calling for the inquiry
Immediately after Congress convenes
tomorrow. He predicted the admins
tration would support the measure 100
per cent"
1t would direct committee Of seven
House members to determine who are
the monopolies or monopolists en-
gagged In the sit-down strike to pro-
duce economic chaos" and to afford
Secretary Ickes and Mr.. jackson an
opportunity to "vindicate themselves
from the grave charges that they are
demag agcging to arouse the hatred Of
tne majority against tho minority"