Evening star., 1938-08-23
D|STR|BUT|0NA|D
URGED BY ROPER
Process Must Be Freed by
Removal of WastefuI
Practices, He Says.
Continued From Page B-8.)

(COntlnued FROM Page B-S)
power. If rates are so high in one
line that they lead to unemployment
and lower total pay rolls, then the
actual result is to reduce labor'S pur-
chasing power. On the other hand,
II rates are so low in certain lines
that employees are not enabled to
enjoy their share of the flow of goods,
this equally constitutes an impedi-
ment to full utilization Of our re-
sources. 1t is question of balanced
relationships here as elsewhere. This
applies as well to other prices.
1t is not the price Of steel that deter
mines the purchasing power of the steel
makers, but the price multiplied by
the quantity sold When a reduction
in the price of steel leads to an in
crease in the quantity sold, which
more than offsets the unit price reduc-
ton, then the gross income of the
manufacturer would increase and there
would be nothing deflationary in the
movement; but when prices are so low
that they involve widespread losses,
they do not increase purchasing power
for labor or any other unit as industry
cannot function effectively under such
conditions. If we are to sell the maxi
mum volume of goods that can be pro-
duced, we must have correctly bal
anced prices and wages that make
possible the fullest employment and
the largest volume Of pay rolls.
The kind Of competition that must
be eliminated from our economic life
is not that which legitimately sup
ports our profit system and meets its
social responsibilities, but the destruc-
tive type, and monopolistic controls
which harm both business and the
public. Experience of leaders in busi-
ness has made them familiar with
those practices which are detrimental
and which adversely affect the con-
sumner and impede progress. Informed
as they are, they should initiate the
necessary changes through their own
efforts, with the knowledge that the
Government is ready to help if and
when its assistance is needed.
1t is admitted that many of the
situations affecting the proper opera
tion of our system of distribution are
traceable to monopolistic practices. A
fact-finding investigation now under
way will, we hope, point the way to
effective remedies in the interest of
all our citizens. With the economy
of the Nation complicated by the
growth of great corporations into vast
economic states, the power of the
Congress to secure competitive SELL
ing and prevent unreasonable profits
is the public's safeguard against
abuses.
Under the existing laws of the
United States, it is virtually impos-
sible for private monopolies to legally
prevail. Yet conditions have arisen
that challenge the ability of the Gov
ernment to regulate monopoly effec-
lively. Otherwise, monopoly. with its
vast integrated power might seek to
regulate the Government and defeat
the fundamental aims of democracy.
Thus, IN preserving our competitive
economy and private property rights
against monopolistic encroachments,
democracy itself is being protected.
Asks Co. operative Endeavor.
The approach to solution must be
supported by background of correct
understanding and with a broad per-
spective Of the interviewer problems
A purely negative program for curing
evils will not suffice, but the solution
must come from positive and construc-
lively cooperative endeavors, imple-
mented by machinery within the ex-
listing framework. Concerted action
should be based on the recognition of
the fact that the objectives are mutual
and hence their accomplishment would
, result in mutual good. Existing un-
equal terms in the economic system
must be brought into equitable balance
through the enforcement by industry
and government Of such rules and
regulations for fair play as will prevent
monopoly and preserve personal lib
erty.
The steps that are taken now to safe
guard our competitive system against
those tendencies which would thWart
1ree enterprise are steps taken in time
They will remove us further from the
undesirable alternative of government
ownership and operation of enterprises
that are essential to the national econ
omy.
To this end, such regulation of
monopolistic organizations as are in
imical to our fundamentals of govern
ment and to our competitive system
should be undertaken and a program
formulated which would properly con-
serve our national resources and main
tain equal opportunity 1t must be
recognized that evil is not necessarily
q characteristic Of size which we call
"bigness," but that the true measure
OF corporate size is determined by the
yardstick of service to society generally.
Economies achieved by mass produc-
tion must be conserved and encouraged,
but not at the expense of unfair and
harmful exploitation.
Every item of cost and every policy
must therefore be submitted to the