Chapter Xi the Government and the Business Man

The Constitution gives Congress the power to regulate commerce between the several states and with foreign countries. Formerly the prevalent view was that the government should interfere with business under this grant of power as little as possible. But during the last forty years or so the federal government has extended its power over business by many regulatory laws and has set up federal agencies to execute and enforce this legislation.

At the same time the Supreme Court, through numerous decisions, has recognized, as within the Constitution, this interference of the government with business.

This is not the place to discuss the legal developments; but we may appropriately look at some of the constructive measures adopted for the benefit of American business and note how some of the executive departments and bureaus already described, serve the business man.

The Department of Commerce, as its very name indicates, exists for the specific purpose of developing American industry. So to a large degree does the Consular service.

Through these sources an American business man can obtain information regarding trade opportunities in any part of the world. The information is gathered by the consuls, by special agents and by commercial attaches. Information of this sort is available for those requesting it and is published from time to time in bulletins and reports. These can be obtained from the Superintendent of Documents, Government Printing Office, Washington, D. C.

The Bureau of Foreign and Domestic Commerce, in the Department of Commerce, also has a division that pays special attention to foreign patent and trade-mark legislation. Perhaps only those who have engaged extensively in foreign commerce realize the importance of this service. But it has often happened to an American business man that after he had made a certain trade-mark internationally known he found it impossible to use it in certain foreign countries because some one else had registered it before he thought of entering that particular market.

Through the consuls and other representatives, the bureau mentioned also acts as mediator in disputes arising between American exporters and their customers in foreign countries.

The consular service, of course, comes under the jurisdiction of the State Department. It is charged with the duty of assisting American citizens in foreign commercial transactions.

The Tariff Commission created by an Act of Congress passed in 1916, is an investigating body whose duty it is to gather information and make recommendations regarding all questions of tariff. While its work is not at all spectacular, it is of great importance to American industry. Its work may affect the American business man, on the one hand, through any recommendations it may make for change in tariff rates on goods brought into this country; and, on the other hand, it may be of value to the American business man in giving him information concerning the duties levied in countries with which he proposes to do business.

The government, through the various bureaus, renders extensive service to specific industries, such as mining, fishing, and lumbering. We do not have space to go into detail regarding them; but any business man interested can readily obtain information by writing to the proper department or bureau.

There are three bodies more that need to be named specifically because of their relation to American business.

The first is the Federal Trade Commission, which has the following work to do: (1) To investigate, at the direction of Congress or the President, abuses in commerce and in the relation of industry to the public; (2) To investigate on its own initiative interstate business and to recommend legislation to Congress to correct any abuses found; (3) To receive complaints from any manufacturer, wholesaler or retailer and to take steps, through its legal department, to correct any unfair business methods it may find to exist; (4) To collect and compile data from corporations engaged in interstate commerce; (5) To investigate trade conditions in foreign countries; (6) To prevent price discrimination and rebates; and, (7) To see in general that trade and corporation laws are observed.

The second of these bodies is the Federal Reserve Board, which has general supervision over the whole banking system in the United States.

The third is the Interstate Commerce Commission, some of whose principal duties are as follows: (1) The regulation of railroad rates and of the rates of other common carriers; (2) To receive complaints against carriers, to investigate them and to take appropriate proceedings, such, for instance, as ordering a refund or a reduction of rates; (3) To prescribe uniform accounting systems for common carriers; (4) To receive and file reports of common carriers; (5) To maintain a department of statistics, making material data available to the public; (6) To ascertain the value of properties owned by common carriers; (7) To investigate railway accidents; (8) To enforce the laws regarding safety appliances and hours of labor; and, (9) To regulate the movement and distribution of cars, so as to prevent car shortages.