Evening star., 1933-11-11
BACKS N.R.A. ORDER.
ON i. S. CONTRACTS.
Controller General Rules They
Are Barred to Code
vioIators.
Continued From First Psge)


such industry sign or otherwise afarm-
atively signify their assent TO such
code.
while all persons and firms en-
gagged in an industry have a right
under the law to participate in the
formation of a code of fair competi-
tion for their industry, when such
code is finally adopted and approved
by the President pursuant to the
above-quoted provisions of the nation
al industrial recovery act. 1t becomes
the law for that industry and is bind
ing on those members of the industry
who took no part in its formation and
do not assent to its provisions as well
as on those who did participate in its
formation and who may have specifi-
cally aSSented to its provisions. In
this connection note section (b) of
the national industrial recovery act
After the President shall have ap-
proved any such code, the provisions
of such code shall be the standards of
fair competition for such trade or in
duStry or subdivision thereof
THE fact that the Ford Motor Co.
may not have signed assent to the
code OF its industry and indicated
that 1t intends to comply with the
provisions of said code seems not con-
trolling here. Until 1t Is established
that one subject to a duly approved
code Of fair competition has violated
its provisions it is to be assumed, as Is
the rule respecting any law, that the
provisions of the code will be duly
observed
Dealers Contention Disputed.
In taking up the contention of the
Northwest Motor Co. that its bidding
status Is that of an individual, the con-
troller general, dissenting, says:
1T may be said generally that in ap-
plying contract provisions designed to
promote the purposes of the national
industrial recovery act, there cannot be
recognized such an independent status
between the manufacturers of automo-
biles and trucks and the sales agencies
or dealers who contract to sell said
automobiles or trucks to the Govern
ment as to warrant holding that such
contract provisions relate only to the
code for the motor vehicle retailing
trade.
"As to the statement made by the
bidder, the Northwest Motor Co., in its
letter OF October 81, 1888, as follows:
Bidder hereby certif1es that it has
COAAP11Cd Will R1OV1o1OuS Ol tA1G
N r. A. but has no authority to make
any statement in regard thereto re-
Specting any OF the manufacturers from
whom it purchases the parts, vehicles
and equipment it offers in this bid.
The manufacturers are in respect a
party to this bid
This apparently means no more than
that the bidder attempts no representa-
tion respecting compliance or non-com-
VNIkA Gv. h. s..
whom it purchases the parts, vehicles
and equipment bid upon, with the pro-
visions of the code or codes applicable
to such manufacturers 1t Is likely the
bidder has no such control over the
manufacturers as to exact code compli-
ance thereby and assuming, as stated,
such manufacturers are In no respect
partie3 to the bid, such facts, ii facts
they be, can have no effect to relieve
the bidder from responsibility under the
code for the motor vehicle retailing
trade and the provisions of the contract
in the event Of failure OF manufacturers
involved to comply with the provisions
OF the code OF fair competition for the
automobile manufacturing industry"
The provisions of these codes an
proved by the President pursuant to
statutory authority have the force and
effect of law" McCarl says in con-
clusion.
Wallace Out OF City.
Secretary of Agriculture Wallace
through whose department the Civilian
Conservation Corps trucks are being
obtained, was in Des Moines. Iowa, to-
day and in his absence aides indicated
the department will approve the low
bid OF Mr.. Sabine within a few days,
first ascertaining definitely, however,
whether Government officials. includ-
ing those of the N. R. A., have any
complaint regarding observance of the
code by the Ford company.
That step then would put 1t up to
the dealer to say If he would accept