Evening star., 1933-08-06

flexible to accommodate industries
having special conditions; and that the
bill should include a provision for fix
ing minimum wages. This was the
original introduction of the idea of
minimum wages into the bill. Miss
Perkins suggested that THE Secretary
Ct Labor be authorized to specify the
total hours of operation of a plant .
certainly during the emergency" This
was the first introduction of the idea
of continuing control of industry by a
Government agency.
Up to this point the bill had only
two inspirations, Senator Blacks orig
inal one and Miss Perkins. Miss Per-
kinS was careful to say her suggestion
was her own. 1t was not an admins
traticn proposal Up to this point
President Roosevelt had had no hand
in the measure. 1t was not part Of his
program. He regarded it merely as a
bill that had originated in Congress in
the usual way and had been passed by
one body, the Senate.
Roosevelt Enters the Picture.
At this point arose one of those cases
of trivial incident which often makes
important history. There came to Mr.
Roosevelt, from some source or other.
a story which impressed him strongly.
The story was repeated by him fire.
quently in private conversations dur
ing the early part of May.
turing plant in a small town persuaded
their employees to agree to an eX-
tremely low wage. Armed with this
low cost of production, the owners went
to New York and were able to secure
about all the orders for sweaters on
the market. Their plant was able to
operate. in three shifts. "a hours day,
while ether sweater factories through
out the country. and the communities
dependent on them. were PROSTATE.
1t seemed to President Roosevelt that
this was an impeachment to Nationwide
recovery. 1t was throat-cutting COM
petition working to the disadvantage
of the country.
The story had a second angle It
brought to light the fact that in the
textile trade generally wages were ex-
trem1ly low and child labor was used.
The textile industry was conspicu-
Cusly the one in which there was ne
cessity for a minimum wage.
This story caused President Rcose-
velt to begin to take an interest in the
bill in Congress providing for a short
work week and a minimum wage He
did not make the bill his own, how
ever, for some time.
Business Promotes the Bill.
At this point, organized business
came forward. 1t came mainly through
the United States Chamber of Com
merce and its chairman. 1t was or
ganized business chiefly that caused
the bill to become what it now is What
business wanted and proposed was. in
effect, immunity from the antitrust
law. Their proposal was that the trade
association in each industry should be
permitted to do what the antitrust
law forbade, namely, agree upon wages,
hours. production and price, or al least
minimum price. At that time. early
May, We were still in the midst OF
depression and business was in rather
a state Of terror.
Business Proposal Starts Action.
1t was really this proposal from busi-
ness that caused the industrial recovery
act to become what it is. 1t was in
stantly apparent that if business was
to be allowed to make agreements con-
trary OF the antitrust law, the Govern
ment must have hand in making the
agreements and must have a continuing
supervisory hand in carrying them out
At that time business was so frightened
by the depression that it was willing to
pay this price. Six weeks later, or today,
With prosperity resumlng. probably much
Of business regrets the bargain which in
effect it made. Even at the time. some
areas of business deplored the attitude
taken by leaders of the United States
Chamber of Commerce.
That is the genesis of the industrial
recovery law. Senator Blacks original
bill, Secretary of Labor Perkins ideas
and the ideas Of the United States
Chamber of Commerce were drawn
together in the Office of Senator Wagner
of New York. who sponsored the bill.
1t was at this point that Gen. johnson
entered the picture. He observed that
the bill was along the lines of his
theory OF holding production down
while raising purchasing power up. He
made some suggestions designed to make
the plan workable. Because of that
activity he was chosen to administer
the bill.