the principles of competition are, in the nature of things, inapplicable. In all fairness, it must be admitted that regulation, as used, has not been an unqualified success. In many cases, the influence of the interest sought to be regulated, and its affiliations, has been so powerful that regulation has been a doubtful success, and in some it has been a total failure. Vast aggregations of wealth, acquired and used in monopolistic ventures, frequently have an influence permeating, not merely through the realm of business, but through the social and political world-a seigniory not only of economic life and death, but of social recognition and political distinction. The hand of government, acting through legislatures, executives, and even courts, is found too feeble for the task of restraining corporate extortion and greed.

Because of its inherent difficulties and deficiencies, regulation is to be resorted to only in extreme cases. How foolish, then, to create a monopoly in the bus business merely to have the pleasure of attempting to protect the public by an effort to regulate it.

7. This legislation is merely a part of the general effort of an important school of business men to get away from the competitive system. On that system, business, as it has been known in the past, depends for its very existence. Upon it business men have acquired an influence beyond that of any other class. On every hand mergers and consolidations are being consummated. These important business men are decrying the laws designed to force competition and to preserve the competitive system. Even the most casual consideration should lead the beneficiaries of our present system to know that always the choice is before them shall we have competition or a system of collectivism? That is the issue. Regulation is a poor substitute for either, and it must be recognized that it will not be permanently accepted as applicable to business generally as such a substitute. Business men who sincerely believe in our economic system should fight, as for their lives, to hold onto such of competition as yet remains, and to get back upon the solid ground upon which the business world was founded.

8. Sections 4 and 5 embrace the so-called "grandfather clause," which recognizes, as a vested interest, the business of those who were operating busses on January 1, 1930. It grants to those operators a precedence and a priority, and is intended to secure to them the required permission to continue their operations. This clause discriminates against all those now operating who may have begun after January 1, and all those who may desire to begin operations in future. As a discrimination, it is unsound in principle. If we are to grant certificates giving exclusive rights and privileges, all desiring them should apply on an equal basis, and all applications should be considered upon their merits, without preference or priority, and with an eye single to the public interest.

9. By section 9 consolidations, etc., between bus lines and between bus and rail lines are authorized. Such consolidations are to be permitted without limit when found by the commission to be "in the public interest." No other consideration is to be entertained. This section is subject to every objection which can be urged against the consolidation of railroads, and, in addition, to the objections (a) that there is no safeguard for the protection of short lines and feeders; (b) that the consolidations are not required to be in pursuance of any

general plan or system of grouping; (c) that the railroad consolidation bill does not authorize the acquisition of competing bus lines; (d) that a bus company may acquire competing rail lines without number; and (e) that no protection for minority interests in either rail or bus lines is provided.

This section overrides the laws of the States in which the bus companies were chartered. Where they interfere with the acquisition of other carriers, competitive or otherwise, it strikes down all prohibitions and limitations imposed by the State upon its corporate creature as the condition of its creation. It makes of the corporate creature of a State a power superior to the State which created it and which may laugh at the ordinances of its creator. It clothes the corporate creature of the State with Federal powers and probably relieves these corporations of their responsibilities to the State without imposing upon them any corresponding responsibility to the Federal Government.

The bus business is yet in its infancy. With the completion of links under construction, a system of many through national highways is rapidly being developed. When the contemplated highways are completed, we may look for a vast expansion of bus lines, the extension of existing lines, and the creation of many new routes of motor transport. It would seem quite premature, in the present state of development of the bus business, to provide for unlimited mergers and consolidations.

It is significant that in this, the first legislation by which Congress takes cognizance of the bus business, we should provide for wholesale consolidations. By this bill, which for the first time provides for the certificate, a device by which a monopoly is to be created, we also provide for consolidations, a means by which the monopolistic franchise or privilege may be realized upon. By facilitating the transfer of the monopolistic privilege, we encourage extensions of the monopoly and the consolidation of the separate monopolies into a few hands. It is safe to predict that, within a dozen years, practically all of the important bus lines will be owned by a few big companies, and that it is but a matter of time before the rail carrier interests will have absorbed practically the whole system of bus transportation. Every argument against monopoly is denied by this bill. It violates every principle in opposition to the aggregation of vast interests vital to the life of a people. It invokes every danger from the social, economic, and political power of inordinate accumulations of wealth.

10. The bill has numerous structural and minor defects, but it does not appear desirable to attempt to enumerate them. GEORGE HUDDLESTON.

RETIREMENT OF EMPLOYEES IN THE CLASSIFIED CIVIL SERVICE

FEBRUARY 27, 1930.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. LEHLBACH, from the Committee on the Civil Service, submitted the following

REPORT

[To accompany S. 15]

The Committee on the Civil Service, to whom was referred the bill S. 15, having considered the same, report the same with an amendment with the recommendation that the amendment be agreed to and the bill as amended be passed. The amendment is as follows: Strike out all after the enacting clause and insert in lieu thereof: That the act entitled "An act to amend the act entitled 'An act for the retirement of employees in the classified civil service, and for other purposes,' approved May 22, 1920, and acts in amendment thereof," approved July 3, 1926, be, and the same is hereby, amended as follows:

ELIGIBILITY FOR SUPERANNUATION RETIREMENT

SEC. 1. All employees to whom this act applies who, before its effective date, shall have attained or shall thereafter attain the age of seventy years and rendered at least fifteen years of service computed as prescribed in section 5 of this act shall be eligible for retirement on an annuity as provided in section 4 hereof: Provided, That city, rural, and village letter carriers, post-office clerks, sea-post clerks, laborers, and mechanics generally shall, under like conditions, be eligible for retirement at sixty-five years of age and that railway postal clerks, mechanics and laborers in navy yards, and those employees engaged in pursuits whose occupation is hazardous or requires great physical effort, or which necessitates exposure to extreme heat or cold, and those employees whose terms of service shall include fifteen years or more of such service rendered in the Tropics, shall be eligible at sixty-two years of age; the classification of employees for the purpose of assignment to the various age groups shall be determined jointly by the Civil Service Commission and the head of the department, branch, or independent office of the Government concerned: Provided further, That any such employee who was employed as a mechanic for the major portion of his service, and not less than fifteen years, and was subsequent to August 20, 1920, involuntarily transferred to employment as a laborer and thereafter involuntarily discharged from the service of the United States, shall receive such annuity as he would have been entitled to, if on the day of his discharge from the service he had been retired under the

provisions of this act: Provided further, That any mechanic, having served thirty years, who was, through no fault of his own, transferred or reduced to a minor position, and who shall have attained, or who shall thereafter attain the age of sixty-two years, shall have his annuity computed upon his average annual basic salary, pay, or compensation, for the last ten years of his service as a mechanic: Provided further, That the term "mechanics," as used in this act, shall include all employees in the Government Printing Office whose duties are to supervise, perform, or assist in apprentice, helper, or journeyman work of a recognized trade or craft, as determined by the Public Printer.

All employees to whom this act applies, who would be eligible for retirement from the service upon attaining the age of seventy years, sixty-five years, or sixty-two years, as the case may be, shall, after attaining the age of sixty-eight years, sixtythree years, and sixty years, respectively, and having rendered at least thirty years' service, computed as provided in section 5 of this act, be eligible for retirement on an annuity as provided in section 4 of this act. Retirement under the provisions of this paragraph shall be at the option of the employee; but if such option is not exercised prior to the date upon which the employee would otherwise be eligible for retirement from the service, the provisions of this act with respect to automatic separation from the service shall apply.

AUTOMATIC SEPARATION

SEC. 2. All employees to whom this act applies shall, on arriving at retirement age as defined in the preceding section, and having rendered fifteen years of service, be automatically separated from the service, and all salary, pay, or compensation shall cease from that date, and it shall be the duty of the head of each department, branch, or independent office of the Government concerned to notify such employees under his direction of the date of such separation from the service at least sixty days in advance thereof: Provided, That if the head of the department, branch, or independent office of the Government in which he is employed certifies to the Civil Service Commission that by reason of his efficiency and willingness to remain in the civil service of the United States the continuance of such employee therein would be advantageous to the public service, such employee may be retained for a term not exceeding two years upon the approval and certification by the Civil Service Commission, and at the end of the two years he may, by similar approval and certification, be continued for an additional term not exceeding two years, and so on: Provided, however, That after August 20, 1930, no employee shall be continued in the civil service of the United States beyond the age of retirement for more than four years.

Whenever an employee shall make application for such continuation in the civil service, and shall submit acceptable proof of his present physical fitness to perform his work, it shall be the duty of the head of the department, branch, or independent office of the Government concerned to obtain from the immediate superior in the service of such applicant all efficiency ratings and other information on file respecting the character of the work of such applicant, and shall also obtain from such immediate superior his opinion in writing with respect to the efficiency of the work performed by such applicant. From such information shall be eliminated increases in ratings, credits, and other preferences for any cause whatsoever other than the character of work actually performed. Should such information show that the applicant has been efficient and competent during the two years next preceding his application for continuance in the civil service, the head of the department, branch, or independent office of the Government concerned shall, as of course, certify to the United States Civil Service Commission that, by reason of the efficiency and willingness of such applicant to remain in the civil service of the United States, the continuance of such employee would be advantageous to the public service.

No person separated from the service who is receiving an annuity under the provisions of section 1 of this act shall be employed again in any position within the purview of this act.

EMPLOYEES TO WHOM THE ACT SHALL APPLY

SEC. 3. This act shall apply to the following employees and groups of employees: (a) All employees in the classified civil service of the United States, including all persons who have been heretofore or may hereafter be given a competitive status in the classified civil service, with or without competitive examination, by legislative enactment, or under civil service rules promulgated by the President,