Milford chronicle., 1955-09-23
LOWER TAXES IF HOOVER REPORT
IS FOLLOWED

of the recommendations has appeared. This
was inevitable, for the Commission dealt not
only with administrative policies and pro-
cedures, but went into great and highly con-
troversial matters OF governmental phlo-
sophy as we'll Mr.. Hoover, naturally, ex-
pected that there would be dlssents, out one
charge, made in the name of the Democratic
National Committee, obviously provoked him.
1t said that he had stacked the Task Forces,
especially that on Water Power. The former
President answered that this was San in
famous smear on the Commission" and
pointed out that there was no division on
political grounds, every recommendation be-
ing approved by a majority including some
If not all of the five Democratic members /;
that every member signed statement tend
ering Commission appreciation ''for his able,
fair and patient leadership and that public
power groups were not represented on the
Water Resources Task Force for the same
reason that representatives of the utilities
were not appointed-an objective inquiry
was wanted.
The Task Force reports are long and de-
tailed But the idea back of them is pretty
well expressed in single sentence, which
u. S. News & World Report used as title
for an interview with Mr. Hoover: Govern
ment is too big
In the T. S. News interview, Mr.. Hoover
described "the philosophic foundation" with
which a large majority of the Commission
members agreed: "The whole social-economic
system of this country is based on private
enterprise, property regulated to prevent
unfair competition and to prevent monopol-
les that the Government should provide
those services which the people cannot do
for themselves" That was the test used in
examining the various government agencies.
Going on, Mr.. Hoover said that 5000
cases were found in which the government
conducts business operations In direct COM
petition with private citizens. Most of these
enterprises were born in emergency of war
But, when their job was done and the emer-
gency ended, they didn't close up shop. AS
he put it, g. they were equipped with a
large bureaucracy, in love with an empire"
and they had powerful pressure groups sup
porting them.
In the 20 years preceding the present
Administration, Mr.. Hoover then said the
federal government actually multiplied Ia
times in size He does not oppose all this
expansion-much was unavoidable. But a
large part of it, in his view, was not justified.
The Commissions purpose was to show spe-
cifically how government can be cut back
without weakening our military power, or
reducing any necessary federal service, In
cluding those of social nature. The money
savings that would result are not known
exactly. But, Mr.. Hoover believes, they would
DS ~ Ddldi1Ct LIlG OQuSCt dIlQ iildkc
g very substantial reduction In taxes" Some
students have estimated these savings at well
over $5,000,000,0 900 year.
What are the chances of the Commits
sion's recommendations being effected? Some
will become policy with little or no change !;
others will face tougher Shedding. 1t is sig
nifcant that the President has directed the
Executive departments to set up machinery
for implementing the proposals which are
of an administrative character. And, in Con-
gress, there is strong sentiment favoring
many of the others, including those concern
ed with unnecessary and costly government
business activities.
WE, THE PEOPLE, PAY
Who loses when regulation of our trans
portation agencies is too sweeping and too
rigid, and is based on obsolete concepts?
That S64 question has been answered in
report, prepared at the Cabinet level, by
the Presidential Advisory Committee on
Transport Policy and Organization.
The report points out that there has
been a Transportation revolution in the
past 35 years. Where the railroads once had
a virtual monopoly of intercity transporta-
ton, the business has become intensely COM
petitive.
1t then says: During this same period
government has failed to keep pace with
this change and has, in fact intensified its
regulation of transportation. Paradoxically,
the underlying concept of this regulation has
continued to be based on the historic assump-
ton that transportation is monopolistic,
despite the fact That the power of individual
transportation enterprises to exercise mono
poly control has been rapidly eliminated by
the growth of pervasive competition. The
dislocations which have emerged from this
intensified competition, on the one hand, and
the restraining effects Of public regulation
on the other, have borne heavily on the COM
mon carrier segment of the transportation
industry. The shipper and ultimately the
consuming public pay the costs of this dis
location. The consequent loss to the public,
while incapable of exact estimate, is believed
to amount to billions of dollars per year, and
calls for prompt and decisive action"
In other words, it's we, the people, who
must pay when laws and policies prevent any
basic enterprise from making the most of its
" apta or1d oonahi1f+ioc ND h,,c~