Business: The Government’s Week: May 16, 1938

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

¶ Put under way the Federal Trade Commission investigation of the automobile industry. In charge was FTC Economist Dr. Francis Walker with $50,000 expenditure authorized.

¶ Pressed its investigation of the Richard Whitney case as SEC called J. P. Morgan to the stand (see p. 62).

¶ Pushed toward Congressional action the first of three proposed emergency laws to help the railroads. Reported favorably by the Senate Banking & Currency Committee, this bill would permit RFC to make work-loans to any railroad, with reasonable expectations the only collateral required and without the present necessity for the ICC to certify that the road is not facing reorganization. A bill to create a three-man bankruptcy court for railroads is still being drafted; another permitting land-grant railroads to charge full rates for all Government traffic except Army and. Navy supplies was reported favorably by the Senate Interstate Commerce Committee.