Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-01-16
ROOSEVELT STAND
WORRIES BUSINESS
Holding Firm Fight Puzzles
Leaders in View of Mes.
sage to Congress.

Leaders in View of Mes.
sage to Congress.
BY G. GOULD LINCOLN.
When President Roosevelt addressed
Congress at its opening session. he
said there were two ways Of meeting
the economic situation, improving
business and increasing employment.
The first was through cooperation
Of business and the Government.
The second was through enactment
Of laws to remedy evils in the busi-
ness and financial world, some Of
which the President enumerated.
Since Mr.. Roosevelt's address there
penings. The President has con-
ferred with leaders in industry and
OF labor. apparently seeking co-opera-
ton looking toward improvement in
business and elimination Of deleterious
practices. In a press conference he
talked Of production control" as q
measure aiding conditions. He at
tackled "high-pressure' installment
selling. In another press conference,
he urged abolition of holding compa-
MES.
Recommendation Approved.
Also. the administrators tax revi-
sion plans have been revealed in a
report made by House Ways and
Means Subcommittee. It's recon-
mendations are approved by the
Treasury officials.
What can be done by way of Co
operation" and what must be done by
way of legislation?
II there Is to be cooperation, OBJ
servers insist, both business men and
the Government must approach the
matter with open minds. Many OF
the leaders in industry and business
are reported to be ready to Coop
erate-more so than at any other
time.
They are ready to consider the mat
ter of production control. Many Of
them are ready to cooperate in the
matter of minimum wages and maxi
mum hours of labor. They prefer
cooperation in the last rather than
q rigid law. And they look on = law
rs the stepping stone to more and
more demands in the future.
Continued BewiIderment.
The Presidents opposition to hold
Ing companies, however. and to INSTALL
ment selling may lead to uncertainties
and to a continuance of bewilderment
regarding the administration plans for
business and business legislation, it
was said yesterday.
Business men as we'll As the Presi-
dent are fully cognizant Of the evils
of overproduction. 1t is Of no advan-
tage to an industry to produce ut 90
per cent capacity the first six months
of a year, and then be forced to drop
to 80 per cent capacity, or even lower,
the last six months.
How to bring about this control Of
production is admittedly q problem.
It is suggested in informed quarters
that leaders of an industry. ready to
cooperate in this matter of produce
ton control. may sit down with repre-
sentatives of the Government and de-
liberately plan for such control. It
may be necessary to amend the anti
trust laws to permit such agreements.
with more clear definitions Of re-
straint Of trade.
Full publicity. it is asserted. should
be given to all such agreements and
to the proceedings leading up to them.
This Is regarded as essential. for the
protection Of the consuming public as
well as for the component parts Of the
industry, and for the workers.
Others In Deliberation.
Either new agency of Govern
ment or one already established could
De called on to take part in the de-
alterations. If it is preferred to turn
these duties over to an existing agen-
ey. the Department Of Commerce
might be called on. It is believed 1t
would make for better understanding
and administration If these duties were
performed by An agency of the Gov
eminent not engaged in punitive pro-
ceedings. such as the Department Of
Justice and the Federal Trade Com
mission.
Naturally. 1t is said, II these agree
ments and plans are to be made, the
members OF the industry will wish to
get some go" word from q Govern
ment agency to assure themselves that
they will not be violating anti-x trust
or other laws. It may be that this will
b duty assigned to any agency that
sits in with the industrial leaders on
these plans. However. court proceed
1ngs necessarily would not be barred.
involved in any agreement for con-
erol OF production will be the matter
OF prices, either directly or indirectly.
II production is controlled it Is clear
the law Of supply and demand will A.
3ect the prices. This Is . feature
OF such agreements that must, it is
said, be carefully considered.
Prectices Enumerated.
The President, in his address to
congress, enumerated q number Of
pracuces IN business which should.
he held, be eliminated. Among those
he mentioned were tax avoidance
through corporate and other methods.
excessive capitalization, investment
write-ups and security manipulations
price-rigging and collusive bidding in
defance of the spirit of the antitrust
laws by methods which baffie prosecu-
ton under the present statutes, high
pressure salesmanship, the use Of pat
,ent laws to enable larger corpora
lions to maintain high prices, unfair
competition which drives the smaller
producer out of business locally, re.
gionally or even on . national scale:
intimidation Of local or State govern,
menU to prevent the enactment of
labor laws, and the shifting of &C.
tual production from one locality to
another in pursuit Of the cheapest
wage scale.
:. Existing laws, the President said.
require Reconstruction" tn u,Ast th>..