Evening star., 1933-11-10
Controller Expected to Ask
That Code Provisions
Be Upheld.
DECIDES JOBS AND WAGES
ARE PARAMOUNT ISSUES.
Opinion Is Expected to Have Bear
ing in Setting Controversy
With Henry Ford.

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McCarl will uphold the legality of execu-
tive orders requiring N. r. A. code COM
pliance by any bidder on contracts
entailing use of recovery act funds was
seen today In Government circles on
the basis of decision rendered yester-
day by the controller general, in which
Tor the first time he was called upon
to deal with case in which this issue
figured.
In the event McCarl so holds, 1t will
bring to head the N. r. A. controversy
with Henry Ford over the Detroit manu-
facturer's refusal to come under the
automobile code This already has
caused local automobile dealer to call
for ruling from McCarl on the legality
of presumed rejection by the Govern
ment Of low bid to supply Ford cars
to the Civilian Conservation Corps.
Decision Expected Soon.
McCarl's decision In this particular
case is expected at any time now.
inasmuch as 1t has been pending for
two weeks. II adverse to Ford, it likely
will bring court action.
Yesterdays ruling by the controller
general, which sanctioned an award to
the George F. Driscoll Co. of a con-
tract for more than 81 900 900 for con-
struction Of a post Office building IN
New York, came in response to a re-
quest from the Treasury. The depart
ment took the attitude that the code
status Of the contracting concern was
clouded because its adherence to the
Presidents employment agreement did
not become known until after its low
bid had been received.
McCarl treated this time element as
a technicality, and sanctioned the award
accordingly, and did not pass directly
on the legality OF the N. r. A. require
ment. At the same time, however, 1t
was pointed out today that this point
seemed to be taken into consideration,
at least by implication, where the con-
troller general said .the vital things
in the Presidents unemployment pro-
gram are acceptance and faithful OBJ
servance by employers Of the covenants
Of his rendered agreements to the end
that wages may be increased and new
employment created"
States Position.
Further, In commenting upon the in
clusion in the specifications for the
building the Public Works bulletin,
which declares N. r. A. adherence O
necessary requisite for bidder, he said,
1T seems unnecessary at this time to
determine whether, as urged, the pro-
visions (bulletin) so go beyond
and supplement the law as to be with
out force or effect. The evident
purpose of the provision Is to encourage
support for the Presidents re-employ-
ment program and faithful observance
of codes Of fair competition by those
subject thereto. Efforts prompted by so
worthy motive are not to be dis
couraged."
At the same time, however, it was
noted that the decision emphasized
wages and increased employment are
salient points in the recovery program,
and Ford is contending that in this re-
spect he is exceeding the requirements
Of the automobile code.
In this connection the decision said:
When there is considered the pur-
pose and intent Of the national indus
trial recovery act, the serious condition
sought by it to be remedied, and the
Presidents prompt action hereunder
with a single purpose to secure through
patriotic cooperation with his program
by employers increased wages and en-
ployment for those out of work, it
would appear out Of line with the recov-
cry program and far afield from the
high plane on which the President ap-
pealed to employers for support of his
plan to deny for other than an impell-
ing reason a low bidder for public work
who has in the vital things fully CO.
operated with the Presidents plan"
Court Action.
The controller generals decision came
on the eve Of argument In District Su-
preme Court on the motion of the
Driscou Co. for an injunction to pre-
vent award by the Treasury to the
second low bidder. As a result, the
petitioner went into court this morn
ever, to redistribution should later de-
VelopmentS warrant.
Counsel told the court that the de-
sired relief had been obtained through
McCarl's ruling.
In the absence of a construction
code, the Driscoll Co. signed the Presi-
dents employment agreement. but there
was delay in receipt of the executed
document, which was responsible for
raising the issue.
At the Treasury it was said action
on the Driscoll bid would await return
to the Capital of w. F. Robert, as
sistant Secretary of the Treasury, who
is due back Monday.