16 



HARDWOOD RECORD 



May 25. 1922 



America's Birthright of Freedom Is at Issue 



THE LUMBER INDUSTRY is directly and vitally concerned in 

 the appeal which the Federal Trade Commission is taking to 

 the Court of Appeals of the District of Columbia to set aside an 

 injunction by the Supreme Court of the District, restraining the 

 Commission from commandeering from steel corporations data on 

 production, sales, prices, costs and profits. The Commission an- 

 nounces its intention to carry the fight to the Supreme Court of 

 the United States, if it fails to secure removal of the injunction 

 in the court to which it is now appealing. 



The lower court and Supreme Court of the District of Columbia 

 restrained the trade data gathering activities of the Federal Trade 

 Commission on the ground that the Commission in so doing was 

 assuming an authority which not only Congress did not delegate 

 to the Commission, but which Congress itself did not have, because 

 of the limitations put upon it by the Constitution in providing for 

 the protection of states ' and citizens ' rights. Such activities would 

 be a violation of the Fourth and Fifth Amendments to the Consti- 

 tution by compelling disclosures of "trade secrets and facts, which 

 amount to an unreasonable search and seizure." This court held 

 that the requirements of the Commission would amount to the 

 regulation of "purely jirivate intrastate manufacturing business," 

 and furthermore, that production is not commerce and consequently 

 is not subject to the same regulation that might be imposed upon 

 interstate trade. 



But the Federal Trade Commission, witli the impudence, the 

 temerity, which has characterized the activities of this bureau, and 

 is, in fact, typical of bureaucracy everywhere, comes back and 

 asserts that Congress may demand any information which it needs 

 in the formulation of legislation; that it may delegate the gather- 

 ing of such information to a congressional committee or administra- 

 tive body, such as the Federal Trade Commission, and that it makes 

 no difference if the regulation of intrastate commerce does become 

 incidental to the regulation of interstate commerce. Not only 

 this, but it maintains the privilege of Congress, or its delegated 

 authority, to "impose conditions under which state-created cor- 

 porations may engage" in interstate commerce, to secure such 

 trade data as it may desire, from manufacturing or other organi- 

 zations and to give this such publicity as it may see fit, withhold- 

 ing only trade secrets and names of customers. In short, it asserts 

 the right of a Federal authority to secure from an industry what- 

 ever information may suit its whim and then use that information 

 to intimidate the industry in question. The commission declares 

 that requiring trade information and the right of publishing it 

 does not constitute regulation. It holds that any industry dealing 

 in commodities "basic and vital, and, consequently, charged with 

 public interest and use," is subject to the same sort of regulation 

 applied to the railroads in interstate commerce. Specifically it 

 states that iron, steel and coal are such industries, and it might 

 as well have added lumber or any other industry. The Commission 

 not only declares that Federal authority has the right to regulate 

 such industries, but that, in the public interest, it should; further, 



that such regulation can not properly be conducted unless the regu- 

 latory agent is permitted to secure from an industry data on pro- 

 duction, sales, prices, costs, profits. 



If the Commission succeeds in establishing these contentions 

 the power of the Federal Government will be made absolute over 

 the ordinary circumstances of business, and control of production 

 and distribution of commodities would virtually pass from the 

 hands of private enterprise. 



This is an alarming manifestation of the arrogance of the bureau- 

 cratic school of politics which from many sources is challenging our 

 American institutions. This doctrine would substitute for the 

 principle of the broad freedom of private enterprise, which is the 

 essence of our Constitution, the principle of the widest possible 

 measure of Government meddling. This nation has prospered and 

 grown great, because the Constitution imposed as little govern- 

 ment as was consistent with public safety, and maintained the 

 rule that the Government exists for the people rather than the 

 people for the Government. This great vitilizing doctrine will be 

 killed if the Federal Trade Commission has its arrogant way. 



But fortunately there is reason to believe that the courts of 

 the nation will continue to stand between the citizen and bureau- 

 cratic tyranny. Two courts of the District of Columbia have 

 revealed this tendency, and recently the Supreme Court made a 

 decision, which showed that it is committed to the same policy. 

 On May 1.5 the Federal statute, which sought to regulate the em- 

 ployment of child labor by taxing its products heavily in interstate 

 commerce, was declared by the Supreme Court to be unconstitu- 

 tional. Chief Justice Taft declared, in this instance, that the court 

 must refuse to recognize or enforce laws of Congress dealing with 

 subjects not entrusted to Congress but left by the supreme law of 

 the land to the control of the states. He said that the court must 

 perform that duty "even though it requires us to refuse to give 

 effect to legislation designed to promote the highest good. ♦ » » 

 The good sought in unconstitutional legislation is an insidious fea- 

 ture, because it leads citizens and legislators of good purpose to 

 promote it without thought of the serious breach it will make in 

 the ark of our covenant or the harm which will come from breaking 

 down recognized standards. In the maintenance of local self-gov- 

 ernment on the one hand and the national power on the other our 

 country has been able to endure and prosper for nearly a century 

 and a half." 



This reads like a proclamation of new freedom for Americans 

 and promises that bureaucracy will not be permitted to take from 

 us our birthright. 



Hoover's Common Sense 



THE MANNER in which Secretary of Commerce Hoover is 

 handling the current lumber conference on standardization 

 and ethical improvement again reveals an admirable commonsensc. 

 so often lacking in Federal officials. "Whatever is arrived at must 

 be arrived at by your own initiative and upon your agreement," 

 he told the lumbermen. Such an attitude is refreshing. 



Table of 



REVIEW AND OUTLOOK: 



General Market Conditions 15 



America's Birthright of Freedom Is at Issue 16 



SPECIAL ARTICLES: 



Ten Year Review of Furniture Industry Improvements 17-18-44-46-48 



Palmer Speaks on Associate Co-operation 22-23 



Hoover Opens Lumber Conference 24 & 28 



Some Face Veneer Questions 35 



American Walnut Displayed at Better Homes Shows 36 & 42 



THE EXECUTIVES' ROUND TABLE: 



Hoover's Common Sense 16 



YARD AND KILN: 



Convenient and Quick Finding of Relative Humidity and Wet Bulb 

 Temperatures 26-27 



WHO'S WHO IN WOODWORKING: 



Frank O. Anderson 38 & ^ 



Contents 



CLUBS AND ASSOCIATIONS: 



Miscellaneous 32 



Fish Explains Code to Wholesalers 21 and 23 



Appalachian Loggers Hold Congress 19>20 



Michigan Mill Men Will Aid Hoover 30 



HARDWOOD NEWS NOTES 51-54 



HARDWOOD MARKET S4-S7 



CLASSIFIED ADVERTISEMENTS 60-61 



ADVERTISERS' DIRECTORY 59 



HARDWOODS FOR SALE 62-64 



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