Evening star., 1933-08-15
N. r. 4. Group Unable to Protect
Consumers, Ogburn Declares
Chicago U. Economist Voices Opinion
Regarding Committee Headed by Mrs.
Johnson Following Resignation.

sumers' Advisory Board made during
my few weeks experience Is director.
Outlines High Points.
You asked that the memorandum be
brief. have in this interest omitted
some issues which may be desirable to
bring up later. The high points are
outlined upon which understanding and
agreement should be reached one way
or another before the work can 60
forward effectively.
l. The consumers main interest Is
In prices.
If the evolution Of industry Is to be
toward greater consolidation, the part
nership with the Government should
be strong enough to protect the con-
sumner, As shown in our report to you
on the steel code and on the oil code.
Price regulation Is of concern to the
legal department Of N. r. A.. but the
Consumers Advisory Board interest in
prices Of broader nature.
Price determination Is of particular
significance in the basic industries, such
rs oil, steel and COAL The full answer
on price adjustments will probably not
be written for many years to come. but
the issue Is fundamental. No dogmatic
position should be taken, but enough
understanding may be reached at this
time to provide the basic safety for the
consumer.
Urges More Price Indexes.
2. The consumers will lose unless in
dexes Of prices and purchasing power
are developed.
The economic system of the classical
economists was self-regulatory under
competition. II competition is to be
weakened by monopolistic tendencies, I
think the only automatic check on
prices will be recurring business depres-
sions. At such times the faster moving
prices will be overhauled, but at great
social cost. by the slower moving pur-
chasing power.
The expressed policy Of N. r. A. on
this crucial issue at the present time Is
admirable, but it will be blocked, pre-
dict, for want Of adequate indexes. In
my opinion, this is not solely matter
in the province Of the research division
Of N. r. A. Such q major concern Of
consumers calls for the best thought of
the Consumers Advisory Board, for the
alternative to such control is terrible to
contemplate.
g. The consumers will not be pro-
tected unless the administrative provi-
sions Of the codes are carefully watched.
The first phase Of your work. as
understand it, was Ito put the recovery
act over" This was brilliantly done
under your leadership. The emergency
nature Of the act must soon give way
to the longtime set-up. And 1t Is
here that the serious business Of the
consumer comes in.
Needs Reporting Service.
In order to administer the codes
without injuring the consumer, very
full reporting service needs to be pro-
vided for In the codes. Such prOvl-
sions are missing from many Of the
codes A general policy might we'll be
adopted as we have noted in men,
orandum to the deputies from the
Consumers Advisory Board.
The voices of the consumers will un-
doubtedly be loud in the coming years
ON this issue, as is shown from Ger
man experience with cartels. How can
the planning called for by the new deal
be done without provision for such
data in the codes?
T. The consumer analysis OF codes
and reports on hearings is a rather
large task calling for considerable or
ganization. II the codes become much