SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 249

Government is increasing its endeavors to acquire factories, and already
 it has set up .considerable competition with private and corporate
 interests, but the reason given is that the people will benefit
directly when these undertakings are established. It has, however,
been shown by recent statements from the treasury that these Stateowned
 industries are not all profitable commercially. The Government
 has prevented private speculators from taking advantage of
the public by stepping in and regulating prices. ‘This was done recently
 through the Necessary Commodities Commission restricting
prices on sugar, butter, eggs, flour, bread, fodder, etc. The Government’s
 aim is to protect the consumer.
It must be remembered in considering Australian conditions that
the railroads are State or Federal utilities, as are the telephones,
telegraphs, and many of the street railroads.
Buying by public tender, the common practice in Australian governmental
 departments, may possibly restrict the volume of trade.
Furthermore, the time allowed for tendering is not always sufficient
for foreign suppliers to compete, unless they have their own special
representative on the spot watching opportunities as they may arise.
Provisions of the constitution of the Commonwealth.—In the
Commonwealth constitution certain clauses and sections are empolis
 which have direct bearing upon trading, both domestic and
oreign.
Section 51 authorizes Parliament to “make laws for the peace,
order, and good government of the Commonwealth with respect to
(i) trade and commerce with other countries and among the States,
and (xx) foreign corporations, and trading or financial corporations
formed within the limits of the Commonwealth.”
It was recently proposed by the Government to amend the constitution,
 and a bill was submitted to Parliament to that end. There
was an effective majority of each house to the third reading of the
proposed law. It now awaits a referendum to the People At the
latter part of October, 1915, it was decided to delay taking this
referendum until a more opportune time. Undoubtedly, however,
if the Federal administration at present in power remains in power
after the war this referendum will be taken, and it is probable that
the constitutional amendments proposed will be carried. Therefore
it is worth while to study briefly those phases of the amendments
which have reference to the subject of this report. Section 51 of
the constitution above quoted will be altered by omitting from paragraph
 (i) the words “ with other countries and among the States,”
thus making the constitutional power practically absolute in respect
of trade and commerce. Paragraph fer, also cited above, will be
altered by omitting from it the words ¢ foreign corporations, and
trading” or financial corporations formed within the limits of the
Commonwealth,” and inserting in their stead the words “corporations,
 including (a) the creation, dissolution, regulation, and control
of corporations; (b) corporations formed under the law of a State,
including their dissolution, regulation, and control, but not including
 municipal or Government corporations, or any corporation
formed solely for religious, charitable, scientific, or artistic purposes,
and not for the acquisition of gain by the corporation or its members;
 and (¢) foreign corporations, including their regulation and
control.”