Evening star., 1939-12-24
j. ). Officials Seek
Truce in States
Trade Conflict
Fear War May Lead
To Adoption Of
European System

3y the Associated Press.
Federal officials are puzzling over
ways to halt trade war" among the
States which they say has gathered
momentum in recent years.
A special committee is seeking a
truce in trade conflicts between
neighboring States and cities that
have produced clashes over tax and
regulatory laws and a number of
"border Incidents"
Unless these trends are reversed,
some officials fear that the national
tstic system of European states may
supplant the traditional American
plan Of internal free trade.
Incidents Listed.
Here are some of the incidents
they are worrying about:
Colorado called out the militia to
exclude sugar beet laborers from
New Mexico
Indiana and Michigan engaged in
a beer war" that finally was settled
by truce in Detroit.
Armed guards from the Los
Angeles Police Department have
patrolled borders of Nevada and
Oregon in an attempt to keep out
"drifters and immigrants" who
might increase relief loads.
Kentucky and Indiana have en-
gagged in border war" over motor
truck licenses, as have a number of
Midwestern States.
States located on transcontinental
highways at "bottleneck" or bridge
points have imposed special inspec-
tions and taxes.
Rhode Island officials once ordered
red dye poured into Vermont milk in
an effort to force Rhode Island dis
tributors to buy from resident pro-
ducerS.
Part of Trade War"
These and scores of similar Incl
dents all have been part of trade
war" with individual States and
municipalities which some officials
compare to the tactics of Europe's
small Balkan states.
The immediate result, officials say.
has been a serious burden on free
trade between the States and grad
ual development of a spirit of an
tagonism and sectionalism that en-
dangers national unity.
Secretary of Commerce Hopkins
established an informal Inter-
departmental Committee to seek
some solution. Mr.. Hopkins said the
rise of these State trade barriers.
regulations and restrictions was a
serious threat to the economic life
and business well-being of our
country"
President Roosevelt also has
warned against "the rise of internal
trade barriers along State lines
damaging restrictions that have
hlndered the free flow of commerce
among the several States"
A third administration leader.
secretary OF Agriculture Wallace,
said this Nation cant go on forever
treating the producers and business
men OF neighboring States as eco
nomic untouchables."
certain trade restrictions of some
States have been modified recently,
Altruistic Motives.
Most students of the problem con-
cede that many of the State and
local regulations which now hamper
interstate trade had an altruistic
base. But they complain that health
and sanitary regulations for milk
fruit and other foodstuffs have been
expanded until they operate to give
local producers virtual monopoly.
Similarly, they say many of the
rigid safety regulations and license
ices on motor trucks and buses ac-
tuauy were intended to help rail-
roads regain lost traffic.
Mr.. Wallace told recent confer
ence that the public cannot tolerate
any regulatory legislation which pre-
tends to protect the public welfare
out which is conceived in the spirit
OF economic warfare"
Economists trace the increase In
these State and local barriers to re-
cent lean business years and falling
prices. They said the State restric-
tlons served to increase badly needed
local government revenue and an
pease local business complaints
against outside competition.
The theory, the economists said
ignores the facts that burdens can
strangle trade, that restrictions on
imports soon curtail exports, and
that for $50 years internal trade has
oeen based on free-trade principles
They tell of an Iowa farmer who
nauled a load of melons to st. Louis
MO. Iowa highway patrolmen forced
MN to install green lights on the
truck. Policemen in St. Louis Or
oered the new green lights removed
as violation of Missouri laws.
Kansas Ports of Entry"
Another favorite example was fees
Tor a trip from Alabama to South
Carolina for f1ve-ton truck. Ala
oama and Georgia each required a
s4oo license and South Carolina a
$500 fce-a total of S1,1OO.
Kansas set pattern for a numbe,
OF Western States by establishing
ports of entry" on highway traffic
Tor the announced purpose of pro.
tecting resident petroleum producers
against inferior competition ano
'boo'Hg gasoline"
Some economists here compare
These ports of entry" to European
customs stations and their clearance
stickers and fees.
Retaliation has featured many o1
these State attempts to encourage
nome industry.
Wisconsin, trying to aid her i'm.
portant dairy industry, imposed 9
heavy tax on butter substitutes, in.
Guiding oleomargarine made largel,
from cottonseed. The Governors OF
Alabama and Louisiana, in the cot.
ton South, promptly suggested q
boycott on cheese and road ma.
chlnery from Wisconsin.
California, Florida and Texas, the
officials here contend, protect