Evening star., 1933-11-29
N. R. A. Chiefs Second At
tempt to Halt Award Held
Judicial Question.
TECHNICAL VIOLATION
OF CODE "IMMATERIAL"
Decision Made Following Sharp
Letter to Controller General
by z. P. Sabine.

The second attempt by Gen. Hugh
johnson, N r. A chieftain, to keep
Henry TOTd from doing business Win
the Government today was blocked by
Controller General McCar1-
In a decision to the Department of
Agriculture, to which johnson had set
up the contention that award of a con-
tract to the Northwest Motors co. of
Bethesda, Md, for Civilian Conservation
Corps trucks might run afoul OF the
retail motor code because the bid of this
Ford agent probably was under the
minimum set by the code, McCarl held
that this question 'is for judicial de-
termination and not for consideration
by the purchasing or contracting Office
In the awarding of a contract"
The decision also brought out that
johnson admits Ford is complying with
the automobile manufacturers code
save in respect of certain technical
particulars which are considered i'm
material"
Dealer Protests.
The proposed contract, In its original
status, called for purchase of 1000
trucks, TOO of which are now to be
bought by the War Department under
bids opened yesterday.
The shift of this buying arrangement
to the War Department, as the result
of the tie-up in the Department OF
Agriculture, which has had Fords
eligibility for Government contracts
under discussion with McCarl for sew
eral weeks, yesterday provoked dlrect
protest to McCarl by r. P. Sabine, head
Of Northwest Motors.
When his bid was higher than that OF
Chevrolet, Sabine asked McCarl to pro-
hibit any awards under the War De.
partment Offering. He contended that
the new arrangement was illegal
Today's decision was an aftermath TO
that rendered by the controller general
three weeks ago. when he said tnat an
affirmative compliance by Ford WIN 1ile
code would not be prerequisite 10
award of a contract to Sabine as Fords
agent. II the contract was accepted:
however, McCarl said, the code WouIo
have to be complied with.
Questions Figures.
Johnson then questioned the right of
Sabine to submit figure below the list
price.
In presenting the matter the Secre-
tary Of Agriculture wrote the controller
general as follows:
'Under date of November 10, you ad-
vised me that until it is established
that one subject to a duly approved
code of fair competition has violated
It's provisions it is to be assumed tnat
the provisions of the code will be duly
observed. Comfortably with your de-
cision. the matter was submitted to the
administrator of the National Recovery
Administration for advice as to whether
the Ford Motor Co. had violated any
provisions of the code OF fair competl-
ton for the automobile manufacturing
industry.
Il am now in receipt of a letter from
the administrator, dated November IS,
in which the department is ADVISED tnat
to the extent of the administration in
formation. the Ford Motor Co. has, save
in respect of certain technical particu-
lars which are considered immaterlal,
complied satisfactorily with the code of
fair competition for the automobile
manufacturing industry.
Price Question Raised
ITO that extent, the department would
lDpear 10 be authorized, under your of'
cision. to award the bid to the North
west Motor Go. Of Bethesda: No; eSz s.
now raises the further question as to
the probable violation of the NorthWes.
Motor Co. of Article w B, sections l
and of the motor retail code, for the
reason that the bid of the Northwest
Motor Co. is probably below the min,
imum set by the motor vehicle retail
code.
In view of the question now raised,
I have to request that you advise me
Continued on Page 4, Column ID