Evening star., 1939-02-28
By JOHN C. HENRY.

declaring Dluntly LQdt our laws
against monopoly have proved In
effective, Willis J. Ballinger, eco
nomic adviser to the Federal Trade
Commission, warned the Monopoly
Committee today there appear to
be symptoms indicating monopoly
has so far weakened the body of
capitalism that both are in danger
Of dissolution, to be followed, as in
other nations, by some kind Of
authoritarian social order which
would be highly distasteful to the
American people"
THE Federal Trade Commission, ?"
Mr.. Ballinger advised the commit
tee, has become familiar with the
existence of a sentiment favoring
relaxation of the laws against
monopoly. Proposals are constantly
made and no doubt will be made
again. for the organization of price
and production controls under pub
lie sanction, with the purpose of
creating monopolies in industries
where they do not now exist, or OF
sanctioning them where they exist
by evasion Of the law.
"The commission stands unalter-
ably opposed to any general legisla-
ton permitting the organized con-
troll of prices and production by pri-
vate business
Opposes Return Of n. r. A.
Are you advocating a return of
the N r. A.. with all its wretchedness
and oppression?" Senator King,
Democrat, of Utah asked at one
point.
That would be the end Of Amer
ican democracy" Mr.. Ballinger re-
piled. I'VE believe business should
operate under decisions made by
business men, but under a system of
rules"
Throughout, the witness empha-
sized that his reference to capital
ism was to desirable structure. re-
curringly undermined by predatory
individuals or groups within the
structure.
To preserve this desirable struc-
ture. he suggested. there must be
safeguards (the system of rules)
that will prevent the growth Of pow
ers that are destructive Of such
freedom"
Further development of the his
tory of monopolies in America was
presented to the committee by Prof.
Frank A. Fetter of Princeton Uni
versity.
Speaking as representative of the
Trade Commission rather than as
an individual, Mr. Ballinger's dis
sertation was one of the most
pointed and positive declarations OF
opinion ever to come from that
body.
Narrow Limits Favored.
"The commission recognizes" Mr..
Ballinger said. that in some in
dustries chronological necessity or
national defense may require the
establishment of monopoly. But
this development should be kept, in
the commissions opinion. to as mar
row limits as possible. Public utili-
ties do not belong, theoretically, in
a free capitalistic system; they nee
essarily land in government regu-
lation, and some of them already
have landed in public ownership.
For the great bulk of American
industry, free competition,
protected against unfair practices, is
essential. In order to preserve capi-
talism and democracy, we do not
have to keep absolutely every busi-
ness in free form, but we have to
keep enough free business to make
this in general a free country.
IF, in an effort to prevent unfair
practices, free business is permitted
to organize and establish its own
rules of action, the result will in
evitably be to cover all business into
monopoly system. This road leads
directly to some form of authori-
tartan government. The abandon
ment of free capitalism here, as in
other nations, will require the
abandonment of democracy. The
commission suggests, therefore, that
this committee will do we'll to op-
pose any attempt that may be made
to obtain its sanction for laws look
ing to the organization of free in
dustries for price and production
control"
Turning to present conditions,
Mr.. Ballinger asserted that the ef-
fects of the depression, in the opin-
ion of the Trade Commission, have
been aggravated by the lethargy of
the capitalistic system, a lethargy
due to steady growth of monopo-
listic practices in American industry
and trade"
"The failure of controlled prices to
follow the falling market in $780,"
the witness said, apparently was q