Evening star., 1933-06-26
FRICTION REPORTED
IN RECOVERY UNIT
Aides Are Declared at Odds
Over Authority to Ad-
minister Act.
Continued From First Page

Continued From First Page)
ministrator for the industrial control
section, but Secretary Roper has made
it clear to newspaper men that his COM
mittee must approve all plans con-
templated by Johnson.
In outlining his policies in the early
stages of his administration, johnson
said he expected to keep production
costs down to allow buying power
through spreading of employment to
gain momentum.
Industrial leaders Immediately pro-
tested, contending that they as well as
labor should be allowed to enjoy the
fruits of the first upturn in business.
The administrator also ruled that in
duStry could submit trade code provi-
SionS on minimum wages. without re-
sorting to collective bargaining. Labor
leaders Immediately joined the rank Of
protestants.
The first break came last week. ac-
cording to reliable reports, when Secre-
tary of Labor Perkins was said to have
informed the administrator that she
did not like his attitude on collective
bargaining. and that child labor pro-
vision must be written into all codes.
Miss Perkins is member of the Cabi-
net Advisory Committee and the Re-
covery Labor Advisory Board.
Later in the week, Secretary of Com
merce Roper announced he had sub
mitted to johnson suggestion that he
use the commodity division Of the Com
merce Department as nucleus Tor his
organization set-up. johnson is re-
ported to have turned down the sugges-
tion of the chairman of the Cabinet
Committee and was reported to have
threatened Commerce Department OFF,
cials that he would move his organiza-
tion out of their building.
The Advisory Committee was in ses-
sion today presumably to rule on the
price fixing and collective bargaining
tee, however, let it be known that
decision on the organization set-up
would also be reached.
1t was reliably reported also that the
johnson organization would not move
out OF the Commerce Building.
Swope Named Chairman.
When the industrial leaders recessed
their executive session early this after
noon for a short luncheon period, it was
announced that Gerard Swope of the
General Electric Co. had been named
general chairman Of the Committee of
the Whole. John Fahey, Massachusetts
publisher and member of the Federal
Home Loan Bank Board. and Robert E.
Wood, president of Sears, Roebuck Co,
were named vice chairmsn. The other
members Of the General Organization
Committee are Henry M. Heimann of
the National Credit Association, who
was named secretary; Henry I. Harri-
man, president Of the United States
ThomasVlle. N. c., manufacturer: Ed
mund C. Van Diest. president Of the
General Service Corporation. and o.
Max Gardner, former Governor of
North Carolina.
Besides organizing, the main part of
the morning session was taken UP by
an address Of Secretary Roper who
explained the functions Of the national
recovery act. He suggested a few of
the longtime problems that have devel-
oped during the depression, and asked
that they be given serious study.
In the first place" Roper said,
there is the major problem of whether
or not We cannot effect adjustments
and devise controls which avoid the
violent periodic oscillations in employ
ment and income which have been be-
coming more extreme and disastrous
with the advance Of our Industrial
system"
In regard to revising production meth
DDS, Roper asked the committee to study
what bearing does the accumulation of
incurred for financing pro-
ductive equipment have on this prob
lem. He also asked the committee to
determine the proper relation between
the growth Of debt structure and the in
crease in national income.
Growth Of Internal Debt.
He said statistics indicate that this
internal long-term debt has
grown from $37000.000,00O in 1914 to
$72 ,000, 600, coo in 1920 and $l34,O0O,-
000.0o in 1929.
The committee was asked to deter
mine whether the country has mort
gagged the future at more rapid rate
than can be adequately absorbed and
advertised by increases in current in
come. He also requested an investiga-
ton as to whether there should be a
legal requirement that longtime funded
debts should all contain provisions for
their amortization or retirement within
a short period
AS to short-time credit, he asked
that the committee investigate if there
is any way in which 1t could be regu-
lated so as to avoid alternating periods
Of speculative activity and of liquida-
ton.
In conclusion, Roper said:
The problems I have so far been
relate to our domestic econ
Cmy alone. There are others Of great
magnitude presented by the interna-
tional economic situation.
Assuming that the different nations
will attempt to set their own economic i
systems in order by some sort of plan |
ming, Is 1t possible to effect interna-
tional economic adjustments between |
the planned economies of different ma
tons? Can substitute for tariff walls
and prohibition be found which would |
permit larger flow Of international |
trade without impeding national ex-
perimentS toward higher standard OF |
living?"
Swope said 1t is likely several of the
to be appointed will re-
main in session here for several days, |
these problems.
In the meantime the National Retail |
Dry Goods Association has notified the !
recovery administration unof1cially that |
it may file its trade covenant this week !
tentative code, as announced in The !
Star yesterday, is now being studied |
by the associations membership.
Commenting on this tentative code, !
which was drawn up by a committee |
and the directors of the association, |
Lew Hahn. president of the organiza-
ton, said yesterday that retailers in
affiliated lines were working through
the Retailers National Council to per-
feet unified program for all branches
OF retail trade.
The other council associations" he
said. ARE now working on codes to
cover their own trades needs and con-
which We believe will shape up
much the same rs our own does. 1t is
expected that these viii be completed in
time TO permit the blending Of these
separate codes into one national retail
Cnlp nfiOr n fhe time that tha National