The Government's Week

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

P:Pushed the much-mooted monopoly investigation, as the Senate passed and the House pondered a recess inquiry requested by Franklin Roosevelt.

P:Got set to tackle the worst crop problem since 1932.

P:Dumped a bucket of water on the dying embers of emergency railroad legislation. With carloadings at the year's lowest last week and 141 Class I roads reporting a $28,000,000 loss in March against a $24,000,000 net income in March 1937, Franklin Roosevelt tried to spur Congress to pass some of the proposals which have languished there for two months. But this week, after a conference with Senate Majority Leader Barkley, it was admitted that the roads would have to remain in the ditch until Congress meets again next January.

Continued its squeeze on the public utility industry. The Federal Power Commission approved rates for Government-owned Bonneville Dam power: $14.50 a kilowatt year (a new unit of measure) for prime power, $9.50 for secondary power--lowest rates in the U. S., far under those that private companies can economically charge.

P:Delighted retailers all over the U. S. In 1935 the Federal Trade Commission told a New York jewelry store named L. & C. Mayers Co. to "cease & desist" calling itself a wholesaler when most of its trade was done retail at non-wholesale prices--with people who were misled into thinking they were getting a bargain. Last week the Second Circuit Court upheld the 1935 FTC order. Immediately the National Retail Furniture Association started a drive to eliminate "gyp-wholesaling" in furniture. Perfectly legal, of course, remains the business of genuine wholesalers who occasionally retail goods at wholesale prices.

P:Was delighted to accede to the liquor industry's request to be taxed. Under the recent revenue bill the tax on distilled liquors is raised from $2 to $2.25 a gallon for spirits tax-paid after July 1. This horrified the retail liquor business because it meant that any dealer with large stocks tax-paid before July 1 would have a price advantage. So Congress was asked to add a 25-c- floor tax to such stocks to avoid demoralizing the price structure. Last week the Senate Finance Committee favorably reported the bill.

P:Gave the Federal Power Commission authority over interstate sales of natural gases. The Senate passed, with minor changes, a House bill giving FPC the right (not provided by the Public Utility Holding Co. Act) to declare unlawful any wholesale gas rates not "just & reasonable."

P:Let some bankers actually see some gold. Admitted with special permits to the Government's gold sanctuary at Fort Knox, Ky. were the delegates to the convention in Louisville of the American Institute of Banking.

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