The Daily Alaska empire., 1938-06-29

men. but the resolution setting up the investigation is vague on that point
 Just what the committee is up against in it's inquiry is touched upon by Frederick R. Barkley, political observer in a recent article in the New York Times. He points out:
 Two opposing viewpoints will be expressed in the course of the investigation On the one side are the opponents of the concentration of economic power who see it as a menace, and on the other those who argue that such concentration has been inl- portant factor in the economic development of the United States
 In his message the President not only stated the purpose of the inquiry but he presented list of charges many of which had previously been made by Administration spokesmen and such independents IS Senator Borah
 Declaring that there is now "a concentration Of private power without equal in history the Pres- dent cited statistics from the Bureau of Internal Revenue to show the extent of that concentration Fiftytwo percent of the assets of all corporations porting, he declared, are owned by one-tenth of percent of those corporations Less than percent the corporations own 87 percent of the total assets of all of them From the source he cited figures to show that less than one-tenth of 1 percent Of the reporting corporations earned half the of all of them combined and less than percent of all of them earned 84 percent of the total net profits of all.
 The effect of this concentration he declared, is reflected in the distribution of national income Git ing a study by the National Resources Committee he said that AT percent of all American families and single individuals living alone had incomes of less than $10OO for the year 1885 -36) and at the other end of the ladder little than E percent of the nations families received incomes which in dollars and cents reached the same total as the income of the 47 percent at the bottom"
 rT,s ment of capital and labor tends to eliminate price competition and threatens both political democracy and free enterprise for profit
 Managed industrial prices" he declared mean fewer jobs It is no accident that in industries like cement and steel where prices have remained firm in the face of falling demand, payrolls have shrunk as much as 40 and 50 percent in recent months Nor is it mere chance that in most competitive industries where prices adjust themselves quickly to falling mand payrols and employment have been far better maintained"
 Senator Borah has repeatedly spoken the same issue in even more vigorous than the President used. How the Senator recently asked could the government really help the unemployed masses with relief money when monopolists stand ready to take toll of every relief dollar that is spent?
 We cannot restore purchasing power to them said Senator Borah. If there interyenes between them and the government power which fixes prices they must pay
 Industry has answered these charges On the point of concentration of wealth. it has been said that such figures the President cited actually mean little since the corporations themselves are owned by thousands and hundreds of thousands stockholders directly and indlrecu by many more thousands who have savings bank deposits and life insurance policies
 In respect to public utilities it has been pointed out that monopoly has been fully justified so long as public control prevents abuse of privilege It is also emphasized that where regulation is ineffective pub lie competition public ownership is a remedy the Supreme Court decision that there no vested right in monopoly has pretty well cleared the legal path to such public ventures.
 Of the concentration of economic power it is said that few large units in industry can produce product more efficiently and at lower price than IS possible with many small, inadequately financed us It is also argued that long as more than one unit functions in any field, competition still exists and prices seek a proper level. In cases where there is no domestic competition, as in the case Of virgin aluminium it is contended that prices are kept at competitive levels by imports, even over tariff walls and by the existence of substitute or alterna tive products such copper and steel in the case of aluminium.
 And there is the final argument-that the pre- vailing system has built up the richest country and the highest standard of living in the world