Evening star., 1938-01-16

I General Jackson and Secretary Ickes They
aim bluntly at breaking up "bigness "
| Those sharing this viewpoint feel that
mere higness gives dominant power Since
monopoly tends to create bigness, bigness
This groups slogan is Break 1t up" It
calls for more money for enforcement and
more clarity in the law as to what Is
| illegal.
The second group may be loosely de-
scrbed as the Richberg school. For mo-
nopoly control this group does not place
main reliance upon statutes. It would
| rather salvage those features Of N. R. A.
regarded as socially desirable and consti-
| tutionally enforceable In this the chang
ing personnel of the Supreme Court favors
them. This group would not stop at mere
ly strengthening the enforcement agencies
or making the statutes define more clearly
what is illegal They have different con-
ception of monopoly. They would have
the statutes make combinations for GER
tain specified purposes legal. Mere bigness
they do not view as abhorent, but as a
normal and unavoidable development pos
sessing distinct social advantages under
proper Government supervision and CO.
operation. In few basic industries, there
fore, this group seeks to revive the N. r.
A. idea.
| A third approach is embodied in the
Borah- O'Mahoney bill This group disap-
proves of cooperating with business
| through Government bureaus, but insists
that Congress set down clearly the stand
ards to be sought. This 1t would do
through Federal licensing of corporations
engaging in interstate and foreign COM
merce. Issuance of license would depend
| upon compliance with fair-trade standards
to be laid down by Congress. Tie Borah-
| ON1ahoney bill is aimed specifically at such
| practices as child labor and the closed
| shop. But it is device which could be
used to minimize unfair price policy or
| other competitive abuses.
Just how the President will reconcile
the various proposals remains to be seen.
| Certainly request for more money in
1889 for the two enforcing agencies, the
Federal Trade Commission and the De-
partment of Justice, would meet with
little opposition in Congress.
CIarifcation Difficult.
Clariflcation of the statutes as to what
| practices are illegal is a more complicated
proposal, but one likely to be Incorporated
IN Mr.. Roosevelt's message to Congress.
Thus Mr.. Jackson will not be disappointed.
There are indications, moreover, that the
President favors the so-called Richbere
suggestions, which involve more Govern.
mens IN business Excepting for its &C.
ceptance OF regulated bigness this proposal
is not in conflict with the aims stated in
Mr.. Jackson's recent speeches. "Enlight-
ened business men" would be encouraged
to increase production and employment.
improve working conditions, eliminate
waste, provide more effective methods of
distribution and better services to the
public
According to this plan, there would be
set up in one of the Government depart
ments, probably the Department of Com
merce, an agency to consider proposed
Joint activities by trades or industries, pass
on their legality and authorize their adop-
tion separate agency is necessary, since
the Federal Trade Commission and the
Justice Department are prosecuting
agencies and you can't tie up cooperation
and prosecution in the same body"
Protection for Business.
Under this plan, if trade association
favored-e. g., open price filing-and OBJ
tanned from the Government an opinion
that no violation of the antitrust laws
would be involved, its members could 90
ahead with the assurance that, even
though the Department of Justice might
later overrule the Commerce Department.
the business men concerned would not be
criminally prosecuted.
Should the procedure approved by the
Commerce Department later work out in
a given industry in manner contrary to
the public interest, the department could
withdraw its approval and issue cease
and desist" order, violation of which would
then become an indictable of1ense.
This proposed system would be much
superior to the trial and error" method
necess1tated by the present statutes It
would avoid expensive and troublesome ef-
forts. On the other hand, it will mean
more Government in business, and many
will oppose it vigorously on that account
For the Commerce Department. these
semi-regulatory powers over trade and in
dustry would be something distinctly new.
It would be form of what Secretary Roper
describes as democratic government in
partnership with business
Since the point of public contact with
monopolistic or controlled prices lies in
what 1t must pay for the products of in
dustry, the accusations Of the administra.
ton will deserve most careful examination.
Are rigid prices really responsible for the
current business situation, and will
strengthening of the antitrust laws
eliminate such fluctuations in our economic
life?
Consumer Goods Flexible.
1t Is not without significance that rigid
prices are usually found in producers
goods. whereas flexible prices are usually
| found IN consumers goods. When prices
| OF consumers goods like radios are low
cred, consumption tends to be increased.
But the purchase Of producers goods is
not readily influenced by lowering of
prices. A diesel engine may be reduced in
price from 100000 to 100000, but If
business is depressed, the railroads are
not likely to be tempted. The idea that