Evening star., 1938-07-08
TOMAKE
MONOPOLY STUDY
Six Federal Units Ordered
to Make Preliminary
Survey for Probers. /
BY g. GOULD LINCOLN.

0Ot wy WI IVUOt o.
By G. GOULD LINCOLN.
Six Government agencies today
stood clothed with power to make pre-
lminary studies" Of industry and indi-
Hdual industries, for the use Of the
legislative-executive committee ap-
pointed to investigate the whole sub
ject Of monopoly.
The Monopoly Committee, meeting
yesterday, authorised these prelimi-
nary studies. It went further and
set up . subcommittee with power to
issue subpoenas for the use OF the
Government agencies in carrying on
their investigations.
The subpoenas, 1t was explained by
Senator O'Mahoney, Democrat, Of Wy
oming, chairman Of the committee,
will not be used to call witnesses for
public hearings-but to obtain neces-
sary papers and data.
The chairman was emphatic in stat
ing the preliminary program adopted
by the committee was for q purely
objective" study and was not to be
regarded in any way Is . punitive"
expedition.
There is no purpose whatever to
pillory any industry or group in an
industry" said Senator O'Mahoney.
THE purpose Of the committee is to
get . picture showing how American
industry really works, 50 that recon-
mendations for legislation may be
submitted to Congress"
Over and over again the chairman
asserted that there was nothing in the
program Of the committee or its pro-
posed investigation that should fright
en- business and industry.
Studies Authorised.
The program adopted, however, au-
thorizes:
l. The Department Of Justice TO
study industrial combinations and
price policies.
2. The Securities and Exchange
Commission to study corporate powers
and structures:
3. The Federal Trade Commission
to study problems Of production and
distribution.
4. The Treasury Department to
study the relation Of monopoly to Gov
ernment contracts and bids for con-
tracts, and also to undertake q general
study Of antitrust legislation In this
country and in other countries.
S. The Department Of Commerce to
study the general economic situation,
as affected by the size of industrial
groups. and in this connection to re-
view the files Of the old N. r. A. now
in its possession.
s. The Department of Labor to
study the effect Of monopolies on the
employment of labor and the living
conditions of labor.
In reply to . question, Senator
O'Mahoney said that under the pro-
gram adopted, any one of these agen-
cies might investigate any industry or
industrial group along the lines fixed
for that agency by the committee. The
oil industry, for example, or the steel
industry, will be subject to such in
quiry.
Agencies Outline Job.
Each Of the Government agencies
yesterday reported to the committee
the lines along which it believed it
could and should provide information
for the use Of the committee In its
general inquiry which is to come later,
with public hearings The program
adopted was In accordance with these
suggestions"
The subcommittee to issue subpoe-
mas for the use Of the Government
agencies viii consist Of three members
either Chairman O'Mahoney or Vice
Chairman Summers, Democrat, of Tex
as; Representative Echer, Democrat,
Of Iowa, and Chairman Douglas Of the
s. Z. c.
Chairman O'Mahoney will also ap-
point before long q subcommittee to
carry on the work of the full COM
mittee in the event gathering Of the
full committee is not practicable. The
committee adjourned to meet at the
call Of the chairman.
The preliminary investigations now
getting under way, Senator O'Mahoney
said, would require q number Of weeks
He said he did not believe the COM
mittee would have open hearings be-
fore September.
Chairman O'Mahoney has been au-
thori5ed to appoint legislative mem
Der Of the Monopoly Committee to
serve with . representative Of one Of
the Government agencies on the COM
mittee. These will constitute subcom-
mittees and, it Is explained, will be
set up to bring greater coordination
within the full committee itself.
Il have asked the legislative mem
bers Of the committee for their first
and second preferences As to which
agencies they would like to serve with, !"
said the chairman. He will make the
assignments as soon as he has received
the answers to his query.
Senator O'Mahoney pointed out that
under the laws creating them, the Fed
eral Trade Commission and the s..
E. c. have had powers to subpoena
records and witnesses. although the
other Government agencies have not
had these general powers. Within
the limits specified, the other agencies
and the two mentioned will have the
power Of subpoena, but must come to
the subcommittee to obtain the sub
poenas.
No Industries Specified.
The chairman said that there had
been no discussion ct the meeting
yesterday Of specific industries to be
investigated. Apparently each agency
will determine for itself what industry
or group 1t desires to investigate In
this preliminary way.
Complete harmony prevailed at
the meeting" the chairman insisted.
All members Of the committee were
present except Senator Borah Of
Idaho, who Is III at his home here.
None Of the various subcommittees,
the chairman said, had been authorized