Evening star., 1933-08-22
Administrator Tells Group at
Hearing U. S. Will Brook
No Cheating.
Determined TO AVOID
A RUNAWAY MARKET
No Man Hunting or Boycotting
Seen Necessary in Forcing Com
pliance With Blue Eagle.
BY the Associated Press.

A request from Hugh s. johnson TO
resist price increases by jobbers wcs put
before the Nations retailers today at
the opening of the formal hearing on
their wage-lifting, work-shortening code.
At the same time, the administrator
said there would be no man-hunting
connected with the Blue Eagle provi-
sicns, but that if the Recovery Admins
tration found cheaters it would take
the Blue Eagle right of their win
dows."
The retail code, which embraces vir-
tually all stores and shops in towns and
cities of the country, except drug and
food stores, affects more employers and
employees than any Of the major busi-
nesses.
1t calls for a 44-hour week, with Ger
tain exceptions; minimum wages Of
from $40 to sl4 week. according to
the population and location of the town
or city. and bans child labor.
Under the code, Lew Hahn, president
of the National Retail Dry Goods Asso-
ciation, said, local retail trade COM
mittees would draft regulations to apply
the code to stores in their districts.
A. D. Whiteside, the presiding deputy
administrator. suggested that questions
of enforcement and control be submit
ted to the National Committee for de-
termination.
5000 Dry Goods Stores.
Holm read the provisions OF the re-
tail code and told Whiteside approxir
mately 5000 dry goods stores were rep
resented in his organization. He said
this number included virtually every
outstanding store in the country.
The code provides for local retail
trade committees to draft regulations to
apply it to all stores within their dis
tricts.
Whiteside asked Hahn for an inter-
pretation of this local authority, and
was told that the retailers thought local
business would have a more effective
control over local conditions than a
national board or the Government IL
self
1T seemed to U.S." Hahn said, that
nothing could be better than to turn
back to local business the task OF en-
forcing the code"
istrative feature be changed so as to
require specifically that local commit
tees submit questions of enforcement
and control to the national committee,
also provided by the code, for determi-
nation.
Hahn replied there could be no
quarrel" with that suggestion.
Whiteside also asked Hahn about
changes made in a revised version OF
the code which reduced from S35 to
$50 the pay of executives who would
be exempt under the proposed trade
plan, and also increased the maximum
hours from 40 to A. hours week. Hahn
said those changes we're made because
of the demand from smaller merch-
ants who insisted they could not meet
the other conditions.
Not to Be Countenanced.
The declaration that the Recovery
Administration would not countenance
unreasonable price increases was made
ing. He urged the retail trade to resist
price increases from jobbers who sup
ply them with their goods
Il say" johnson said, resent these
price increases and we will support
you"
The recovery administrator asserted
that so far as speculative price rises
were concerned his administration con-
Sidered it "our duty to see that there
is no runaway market"
He said the national industrial re-
covery act would increase prices to meet
new costs imposed by compliance with
the trade charters. but just because OF
this there is no reason to go way be-
yond reason. If you do this, you just
kill the goose that lays the golden egg
The house that we are trying to build
will collapse like house of cards.
Hearing Held Significant.
The retail trade hearing was de-
scribed by johnson as one Of the most
significant of any so far held
Johnson described the purposes Of
the recovery act and told the retail
dealers it provided an opportunity fol
the country's great industrial units tc
band together to wipe out "intolerable
conditions of depression. He added
that the act did not need "Czarism" tc
administer it.
He said those who did not cooper
ate not only were hitting their fellows
but were helping to perpetuate the de-
preston.
In enforcing compliance with the
Blue Eagle provisions. Johnson assert
ed there would be no violence, no man.
hunting and no boycotting.
But. he said. the administration
would move to uncover cheaters be-
hind the Blue Eagle and then I'VE are
going to move in and take the Blue
Eagle right of their windows"
you can't execute great national
CONTINUED on Page 3. Column %