The Government's Week

Last week the U. S. Government did the following for and to U. S. business:

P: Moved to relieve the burden of incessant statistical reports required from business by various Government agencies, Franklin Roosevelt wrote to Chairman Stuart A. Rice of the Central Statistical Board, asking him to look into the problem of duplication of reports and submit "recommendations looking toward consolidations and changes." Said Mr. Roosevelt: "I am concerned. . . ."

P: Found the Senate Bill providing for RFC emergency loans to railroads unpalatable in view of the roads' announced determination to cut wages 15%. Under attack by Senate liberals led by Robert M. La Follette ("a wage-cutting campaign which will not only affect employes of the railroads, but employes in every other industry"), the bill was sent back to committee.

P: Completed negotiations, through TVA in conjunction with the city of Knoxville, to buy, subject to stockholders' approval, the majority of Tennessee Public Service Co.'s properties in Knoxville for $7,900,000.

P: Set June 1 for the start of anti-trust action against Aluminum Co., June 9 against Ethyl Gasoline Corp., and announced a new publicity policy in connection with anti-trust investigation. Businessmen have wished Attorney General Homer Stille Cummings and his department would tell them in advance what they were allowed to do under the antitrust laws. Mr. Cummings last week said that henceforth he would issue frequent statements covering: 1) conditions in an industry which he thinks are in restraint of trade; 2) economic results he hopes to get from an anti-trust proceeding; 3) reason he chose a particular procedure--such as criminal prosecution, civil suit, consent decree.

P: Dropped SEC charges against Gerald Loeb and Gordon Crary for alleged rigging of Auburn Automobile stock from $38 a share to $54 in two months in 1935 and 1936; Gerald Loeb and Gordon Crary resigned from E. F. Hutton & Co.

P: Turned its mind appraisingly to phosphates as Franklin Roosevelt delivered his long-delayed message on the subject.

P: Indicated that it would buy, through Federal Surplus Commodities Corp., 8,000,000 pounds of skim milk powder, equivalent to 88,000,000 pounds of fluid skim milk. FSCC has spent $26,000,000 since January buying up surplus commodities to distribute through relief agencies. Milk production is 8% above last year; prices are lower. Fierce milk wars have been going on in New York, Buffalo, Detroit.

P: Suggested, unofficially, a trust company to "take over the functions of .banking, clearing of securities and the custodial duties of all members of the [New York] Exchange." Including this idea in his speech to the Association of Stock Exchange Firms at Manhattan's Hotel Commodore, SEC Chairman William O. Douglas. thus revived a proposal made in 1932 for reasons of economy by members of the Exchange itself.

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