The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-12-07
MOVE MADE BY
ROOSEVELT TO
AVOID AAA WAR
Gives Farm Code Work to
NRA as Peek and
Wallace Argue.

BIZ United PrDss
WASHINGTON. Dec. Inter
vening in a heated controversy in
his agricultural recovery admins
tration. President Roosevelt has
sought TO ward Of breakup in
that organization by transferring
much Of It's code work TO General
JOhnsOn's NRA.
Mr. Roosevelt acted shortly be-
fore midnight after administrator
George Peek went TO the White
House for a showdown
Peek was aroused by statements
Of Secretary Wallace questioning
the success Of the AAA code and
marketing agreements as contrast
ed with crop reduction measures.
He vas represented as being par
tiCularly bitter toward the brain
group led by Assistant Secretary
Rex Tugwell. which has insisted
with Wallace that crop restriction
rather than marketing agreements
held out the most hope Of Improv-
ing farm conditions.
All codes in AAA except those re-
lating to first processing Of farm
products we're ordered transferred
to NRA This was interpreted to
mean that all AAA code negotia-
tons would be transferred except
those dealing directly with raw
farm produce such as milling, pack
ing and canning.
BY strict Interpretation it was
said this would leave distillers and
brewers under AAA but not liquor
wholesalers and rectifers. AAA Off
Gals explained. however. that the
degree Of supervision of the federal
alcohol control administration over
all liquor industries was such that
the distinction was purely technical.
The transfer of the AAA code
work 10 the NRA was announced in
the following White House state
ment.
Following a conference tonight
with Secretary Wallace, George
Peek and General Johnson. the
President authorized the statement
that for the purpose Of co-ordina-
ton, all codes under the national
industrial recovery act. including
those under negotiations by the
agricultural adjustment administra-
ton. will be turned over to the ad-
mlnistrator Of the national recovery
administration
One Exception Made
The only exception 10 this is
codes pertaining to the manu-
tacturers engaged in the first
processing Of agricultural products
and handlers previous to the first
processing. This work will be con-
tinUed under the AAA."
The announcement surprised those
who had not seen Peek's face red
den during Wallace's press con-
ference when the agricultural sec
rotary asserted that contrary to
Peek's view, the hope of farmers
lay in reducing their crops to the
size Of effective demand. rather
than in the establishment of arbi-
trary values through the control in
agreements and codes of the mar
keting Of their products.
Their surprise was heightened by
the fact that only a few hours
previously Peek had announced
that in December his administra-
ton would conduct the most code
hearings since its inception. He
listed thirty-seven. They included
milk, fruits. vegetables. restaurants.
and fisheries.
Charge Leniency
However. the showdown had been
forecast by Peek's refusal to avail
himself of the services Of Jerome
Frank, AAA counsel. who shares the
views of Wallace and Tugweu on
crop restriction. Peek has turned
over his own salary to Frederic ?.
Lee, who has served as his counsel
unothcially, in the place Of Frank.
The combination of Peek and Lee
was charged by some brain trustees
as having been too lenient in deal
ing with packers.
Wallace and TugWell insist that
no real farm recovery can be ex-
pected Immediately from the ex-
pansion of foreign trade, and that
Peek's codes have raised prices. such
as that Of milk, out of proportion
to the increase in consumers buying
power. and thus have curtaIed con-
sumption.