Evening star., 1941-03-31

the concentration OF economic
po1uer and financial control oUer
production OF goods and services.
Under leadership OF Senator
O'Mdhoney, Democrat, OF Wyo-
sstns, ths committee held numer-
Gus public hearings.
~ the Associated Press.
The Monopoly Committee re-
ported 10 Congress today that con-
centration of economic and politi-
cal power" was undermining the
foundations of both free enterprise
and frve government" in the United
States
Submitting its final report on q
study in progress almost three years
the committee asked for a pollcy OF
permanent decentralization tC
halt such concentration and oHereo
. legislative program, much OF which
was aimed at curtailing monopohstlc
practice. s,
One of the objectives of the study
was to ascertain the causes and
possible remedies for recurfent
business depression, and in this con-
nection the committee rejected Gov
ernment spending as a remedy pro-
posing instead encouragement OF
private enterprise and use OF prl-
vate capital. :,
I'VE cannot" the committee said,
continue to rely upon Government
expenditures whether by way OF
contribution or loan, to sustain en-
terprise and private employment
unless we are willing to invite
eventually some form of the authorl-
tartan state"
Germs of Fascism Seen.
At one point the committee as
SERTED that the germs" of both
Fascism and Socialism already were
"apparent in our own economy.
The committee cited the Bltuml-
nous Coal Act as having set up an
order which is not without It's re,
semblance to the Fascist oroer' ano
said that the Tennessee Valley Au-
thoritv is mot without some aspects
Of Socialism
Specific legislative recommenda--
tions made in the report mcludeo
establishment of Federal charters
for corporations engaged IN inter
state business, but four members OF
the l2-man congressional-executlVe
body dissented. :,
Other legislative proposals "oulo
set I'D new restrictions on corporate
mergers, revise patent laws, outlaw
the basing point price system ano
tighten antitrust law generally.
Pike Proposal Rejected.
The committee rejected proposal
bv Sumner T. Pike. Securities ano
Exchange Commission member, tor
Federal registration and examlna-
tion of national life insurance COM
nanies. but accepted several other
recommendation by Mr.. Pike Tor
Federal insurance laws, including a
nroposaI to bring insurance COM
panies under the Federal BANK
ruptcy Act.
The report was sprinkled with
assertions that maintenance OF
democracy depended on elimination
not only of concentrated govern.
mental control, but concentrated
business power.
TT is quite conceivable" the re-
port said of the current war, that
the democracies might attain mill
tary victory over the aggressors, only
to find themselves under the doml'
nation of economic authority fal
more concentrated and Influential
than that which existed prior tc
the war.
80 great a proportion Of all ma
tional savings and all nationa
wealth have fallen under the con-
troll of a few organized enterprises,
the committee said, that the oppor-
tunity of those individuals who viii
constitute the next generation will
be completely foreclosed unless, by
common consent of leadership II
business and Government, we un-
dertake to reverse the trends re-
sponsiple for the present crisis"
Isador Lubin, commissioner OF
labor statistics, and Leon Hender-
son, a member of the S. E. c. and
In charge of price Stabilization fol-
the Defense Commission, asserted
in q separate statement that the re-
port emphasized the avoidance OF
monopoly more than the broader
and more fundamental questions.
I'VE do not believe that the pro-
gram which this report presents
would, in itself, have prevented the
great depression of the 30s," they
said. Likewise, such a program will
not be adequate to meet the problems
Of tomorrow"
The majority of the committee
proposed these measures to be ef-
fected under a national charter law:
/. Prohibit interlocking director
ships.
2. Make corporation directors
trustees In fact as we'll as in law"
3. Raise a barrier to business
dealings by corporation officers ano
directors for their own persona,
profit with the corporations they
manage"
4. Make corporate officers and di-
rectors civilly liable personally fol
violations of the antitrust laws,
5. Define the scope OF subsidiary
corporations and standardize inter
corporate financing"
Insurance Recommendations.
The committees recommendation!
covering insurance included numer'
Gus proposals for State Legislation
10 strengthen State regulations, bu
excluded a recommendation by Mr
Pike that the States relax thell
investment laws to permit life IN
surance companies to invest IN com
mon stocks. Mr.. Pike contendet
this action would stimulate health
Ter financial structures and have
wholesome effect on the economy
The committee proposed a Fed
ersl statute prohibiting life insur
ance companies from using tn
mails, radio or other instrumentall
ties of interstate commerce to sci
insurance in a State where the.
have not been lawfully admitted II
do business.
Also unanimously recommended