Economists Say Probe of Unions May Lead to Regulation by U.S.

"An S.E.C. for labor unions" may result from the current Senate investigation of corruption in the Teamsters Union, several University economists predicted yesterday.

John K. Galbraith, professor of Economics, said that "basic ground rules of behavior" for unions might be instituted by Congress. He said that, although reform seems necessary, a danger exists that it may become "a vehicle for those who want to square accounts with the unions."

Galbraith predicted that legislation would be proposed extending right-to-work laws, regulating health and welfare funds, and increasing the "financial accountability" of union, possibly through a governmental control organization.

Edward H. Chamberlin, David A. Wells Professor of Political Economy, said that corruption in finance during the late 1920's paralleled present conditions in labor, and added that an organization such as the S.E.C. might be required to remedy union abuses.

Melvin Rothbaum, instructor in Economics, who assists in a course on Public Policy and Labor, noted that, under existing laws, unions file many reports with the Secretary of Labor, "but nobody ever looks at them." He said that inter-union "watchdog committees" might provide better regulation of union affairs than increased government responsibility.