Evening star., 1938-06-27
1y the Associated Press.

1y the Associated Press.
General agreement that many large
corpora tions ought to be broken into
smaller ones, it was disclosed today,
has developed in the conversations be.
tween groups Of big business men and
administration economists.
Prentiss L. Coonley, wo left a New
York brokerage firm to arrange the
informal meetings, said they had pro-
duced almost unanimous acceptance
Of these principles:
l. "Bigness" isn't always efficient.
and generally consolidated business
colossus doesn't earn as much money
as its units earned separately.
z. Business must find methods of
taking care of dismissed employees
more adequately.
8. Cutting prices doesn't always in
crease the volume of sales. because
buyers wait in hope OF further con-
cessions.
Meetings Held at Homes
These. Mr.. Coonley said, were Just
. few Of the things that brought no
argument from either side. It's proof
he declared, that when presuma bly,
hostile men get to know each other,
they are not nearly at such odds
as they had imagined.
The meetings have taken place at
the homes of Mr.. Coonley, an aide
to the business advisory council Of
the Commerce Department. and Rich
ard c. Patterson, jr, Assistant Secre-
tary of Commerce
In some of the discussions, the group
has considered phases of the monopoly
problem. which is to be investigated by
q committee of three Senators, three
Representatives and six Federal off,
clals The committee will hold its
f1rst meeting later this week. and
members predicted Senator O'Ma-
honey, Democrat, of wyoming would
be elected chairman.
Senator King, Democrat, of Utah.
one OF the members, reiterated today
that the investigation will not be
. witch-burning affair"
We are not trying to punish any
one. reward any one. condemn any one
or bless any one," he said. The COM
mittee's job is to get facts. A man
seeking facts doesn't carry a torch
and he doesn't carry whip.
Borah Won't Push Bill.
Inc investigation should not fur
ther chastise business as has been
done. 1t also should refrain from
pushing the Borah- h-OMahoney licens-
ing bill"
Senators O'Mahoney and Borah. Re-
publican. OF Idaho, have proposed that
companies doing interstate business
be incorporated by the Federal Gov
ernment instead of by the States.
senator Borah said he would make
no attempt to convince the committee
that 1t should adopt the Federal licens-
ing method Of dealing with monopolv
II other methods were proved to be
better.
The first hints of the scope of the
monopoly inquiry indicate it will trv
to find out:
Whether the present antitrust laws
can be made effective, and how much
more authority the Justice Depart
ment and Federal Trade Commission
would need.
whether a Federal licensing law
should be put in to supplement or re-
place the present antitrust laws.
Wide Study Planned.
Obviously, before any such decision
Is made, the committee will try to
measure the extent of monopolistic
practices. This will take the commit
tee into study Of mergers and inter-
locking relationships Of various COM
panies, into the financial controls back
OF them, investment trusts. bank hold
Ing companies, the work of trade as
soclatlons. patent laws and taxes.
These are collateral to the questions
that will be asked about price FIX