Evening star., 1933-06-18

"HE buyer for great American
corporation sat at the head OF
shining mahogany table in
i his conference room. officials
of a dozen other corporations
lined the sides of the polished board.
The air was blue with smoke. The IL
men had all submitted bids for a sup
ply needed by the large corporation.
The depression had driven the figures
at which they offered their goods to
a level far below the costs of produc-
ton In the bitter competitive strug-
gle business at loss seemed better
than no business at all.
The buyer spoke: None of you men
can make out on the bids you've sub
mitted. We want to do business with
you on a basis that is reasonably pro-
fitable TO you. We don't want you to
sell to us unless you make money. Let S
put a stop to losses I'll make you an
offer. I'll apportion my order among
YOU on the basis of the business you've
done with us in the past, and will pay
you a price at which you can at least
break even.'"
The arguments for limited amount
of business at a profitable figure seemed
too fair for open dissension. Disap-
pointed, but unable to reject as group,
the men agreed, and the conference
broke up.
"But before these men had reached
their hotels" related the buyer, an Oh
them had called me, offering to supply
nv full. order at a figure below even
the suicidal price they had first Of
fered"
Reflects Our System.
In this incident is reflected our com
retitlve system. its head bloody but
unbowed. making the only stand posi-
BILE where cooperation Is legally a
crime. Our industries have been fight
ing with each other for the privilege
of losing money.
But an attempt is being made to save
industry from self destruction. Amer
lean business is to be revolutionized by
legislation-legislation far flung IN It's
scope. dramatic in its basic repercus-
sions.
With the passage Of the national IN
dustrial recovery measure, an experiment
on a vast scale, challenging the basic
concepts of our industrial life, is nov
begun. The system Of uncontrolled
competition which has so far been re-
sponsible for our progress, Is to be
J ended to meet dire emergency Whlcf
/ the very success Of the system has ere
ated.
/ The national industrial recovery act
! outlines a way out Of the current eco
| nomic debacle through Government
partnership in groups OF cooperating
| industries-with governmental authority
! guiding and restraining competition. Ii
| sets up system of national planning
! to take the place of ruthless war
/ fare in which peace is made Impossible
/ by our antitrust laws.
/ And this unregulated warfare causes
/ disastrous losses not only to business
men. investors and workers. but to the
Nation as a whole. Let's lock at som
/ of the conditions the act aims to
mitigate.
There is the situation referred to by
President Roosevelt in the cotton goods
manufacturing industry. A manufac-
turer of these goods, who has alway:
endeavored to pay his workers IAN
wages finds prices for his product
slipping down below his cost OF pro-
duction., He well knows the reason
Some of his competitors are working
their employees long hours, paying then
starvation wages. and utilizing chile
labor What can the manufacturer
who does net want to do these things
do about it? To keep his plant run
| ming at all, he cuts his costs as draS-
tically as possible-and these costs in
clude wages and also profits. In time
every one in his organization is forced
to curtail purchases, which reacts or
other businesses and industries, ano
thus the vicious circle spreads. Hac
the manufacturer been able to strike
at the root of his trouble and prevent
his competitors from indulging ir
practices recognized to be unsound. he
and his workers would not have beer
compelled to join the ranks of the
depression promoters"
The soft coal industry Is, as are