Evening star., 1938-02-24
BY the Associated Press.

sumner.
BY the Associated Press.
Widespread opposition developed in
the Senate today to proposal by Sen
ator Bailey, Democrat, of North Caro-
lima for a congressional investigation
of commodity prices.
Senator Bailey sought a vote on a
committee-approved resolution to ap-
propriate $4,000 for 30-day inquiry
into monopolistic practices as they
affect prices paid by consumers.
Some administration supporters,
however, were quick to question
whether q $4,000 fund would do any
more than scratch the surface"
Il don't think any congressional
committee is equipped to do the job,"
commented Senator Norris, inde-
pendent. Of Nebraska. If an inquiry
were made. it ought to be very broad
and comprehensive"
Called Wholly Inadequate.
An investigation could be handled
by the Federal Trade Commission, he
added. but not with such wholly in
adequate appropriation.
The Trade Commission spent $780,
900 In an investigation OF farm prices
alone. Senator Norris pointed out.
If We are going to try to get the
facts about monopolistic price fixing. I"
Senator La Toilette, Progressive, of
Wisconsin declared, there should be a
study OF the whole question of mo-
nopoly and competition. 1t would be
futile to attempt to do it in q month -
Senator Bailey told the Commerce
Committee he thought the price
structure. labor costs and business
profits could be sampled" quickly and
the resulting data could be made the
basis of remedial legislation.
Urges Action Be Delayed.
Senator Schwellenbach, Democrat.
OF Washington declared that. since
President Roosevelt has indicated he
would make recommendation to Con-
gress on monopoly legislation, 1T would
be better to wait to see what he recon-
mends."
Mr.. Roosevelt, back in the White
House after a rest at Hyde Park. con-
tinued his study Of the general busi-
ness situation
Secretary Morgenthau said a sup
Elemental report on commodity price.
may be ready for the President in
about two weeks.
Mr.. Roosevelt made public last week
study Of the price situation by econ.
omists working under Mr. Morgenthau
Secretary Wallace and Mariner S. Ec-
cles, Federal Reserve Board chair
man. The same group Is preparing the
supplemental report.
The Presidents next conference. al
date yet to be set, will cover railroad
finances
Senator Bailey denied any intention
Of jumping the gun on the admins
tration.
j. He asserted that he sought a broad
investigation to shed light on the cost
OF food. clothing, building materials,
power production. farm implements
and rates OF taxation.
Disparity Between Prices.
The inquiry should demonstrate, he
observed, whether there is any dis
parity as between prices paid for raw
materials, prices for labor and prices
charged to the consumer.
Necessarily" he said, "in investi-
eating prices we would investigate
profit"
Senators Borah. Republican. of
Idaho, and O'Mahoney. Democrat. OF
Wyoming Endorsed Senator Bailey's
proposal as likely to lead to disclosures
which would increase sentiment for
their Federal corporation licensing bill.
Senator Borah said he believed an
investigation such as proposed would
strike at problem which lies at
the heart of this depression"
There Is q network of forces which
are fixing prices paid by the consum-
ers," Senator Borah declared. We
never can get back to normal business
activity as long as monopolistic price,
flxlng continues.
There has been . determination
on the part Of great number of
members Of Congress to get the facts
Of this matter. think Congress has
come to the conclusion that the situa-
ton demands attention"