Evening star., 1933-11-12
.PARLEY To DISCUSS
FORD ELIGIBILITY
FOR j. s. CONTRACTS
Question Will Be Taken Up
by Roosevelt and Ad-
visers tuesday.
GEN. JOHNSON DISAGREES
WITH M'CARL'S RULING
New Executive Order May Be Is
sued to Garry Out Presi-
< dents Intentions.
BY the Associated Press.

By the Associated Press
Although the controller general of
the United States yesterday held Henry
Ford eligible for Government contracts,
all indications we're that he would get
none until the question is talked over
this week at President Roosevelt's coun-
ell table.
The ruling was that the automobile
code is law; that Ford therefore must
comply with it; that no evidence shows
he Is not complying, and in the alb
sence Of such evidence it must be
assumed that he is.
Hugh S. johnson. the N. r. A. ex-
ecutive, from Fort Worth, Tex, ex-
pressed disagreement with the control
lers ruling, voicing a belief that this
official, j. r. McCarl, had misinter-
preted the Presidents orders on the
subject of giving Government contracts
only to N. r. A. co-operators. Other
officials here kept silence.
Council Meets Tuesday.
johnson will be back Tuesday. and
the Presidents Executive Council win
meet the same day. Directors Of the
emergency units of the Government
join cabinet members in the council.
Other troubles will meet johnson on
his return. A virtual tug-of-war be-
tween labor and industry over the con-
struction code must be settled and such
Is the importance Of the business in
volved and the strength of the con-
tending parties that the problem looms
as critical issue.
Malcolm Muir, the recovery assistant
In charge of construction industries in
teHds to decide by early this week
whether to hold new hearings to placate
labor. 1t seemed likely yesterday that
such hearings would be held, despite
vigorous opposition from the industry.
without further delay.
Ihe McCarl ruling on Ford was oc-
casiored BY two branches Of the Gov
eminent being in the market for auto
mobiles and motor trucks.
Bids for 1000 Trucks Opened.
The Agriculture Department opened
BIDS for 1000 trucks 10 transport Civil
ian Conservation Corps units South for
the Winter. The Commerce DEPART
ment was In the market for four cars
and six trucks for its airways division.
r. p. Sabine, head of the Northwest
both. but President Roosevelt and john
son agreed that In view of Ford's rec
ord. his products should be barred un-
der presidential order of last August,
requiring that sellers Of supplies to the
Government must produce them In COM
pliance with N. r. A. requirements
Both the Chief Executive and john
son intended to advance N. r. AS
cause that the Government business
should be limited to those who CO.
operate in the program. Ford, while
complying, has held aloof.
Most officials here we're of the opinion
that the executive order In question
was too loosely drawn to carry out the
presidential intent, and that McCarl
interpreted 1t soundly. II legally FEAST
bic. new and tighter executive order
probably will be issued, but since 1t can.
not be made retroactive Ford probably
will get the pending contracts.
Only two alternatives appeared open:
Rejection OF all bids and issuance of
new specifications after a revised ex'
ecutive order Is written or delay In
making the awards to allow more ex-
tended study of whether Ford actually
is keeping within the code In every re-
spect.
Violation of Spirit Seen.
Although, under the loose code re-
quirements of a 35-hour a. week aver
age, Ford's 40-hour work week fol-
lowed by seven-day lay-off appears
entirely legal, officials made no secret
they regarded this method as a viola
ton Of the spirit of the whole recovery
enterprise.
The Ford Co. itself announced the
seven-day lay-off as compliance with
"the new prohibition against work In
this country"
In connection with strikes of Ford
employees at Edgewater. N j., and
Chester, Pa, the National Labor Board,
Continued on Page 2, Column a.