Evening star., 1933-06-26
No Wildcat Prices"

zen. T1u6I OOii1AoOAA
of the new national recovery act, last
night put his finger on the danger spot
in the whole gigantic scheme evolved by
the Roosevelt administration and the
Congress for pulling this country out
of its present unemployment and de-
preston Of business. That danger lies
in the immediate or early boosting OF
prices to a point at which it will be
impossible for the public to consume
the output of the producers. Once
such prices have arrived, there can be
no forward movement in industry
or agriculture AS Gen. johnson pointeo
out, and President Roosevelt before him.
the producers and distributors OF all
kinds Of commodities in this country
must be willing to make their profits
out Of greater volume Of sales. If they
follow such a course, then the prospect
for more and more employment ard
larger payrolls becomes brighter. II
they pursue a different plan, however.
and undertake to boost prices to high
figure and to take as much profit as
they can, the sales inevitably will fall
of. there will be still further dimuniticn
of production and the whole vicious
chain of depression will be running at
full speed again.
Gen. johnson, who delivered his
warning over the radio, gave assurance
that the National Recovery Administra-
ton would tolerate no wild price lit
ing" The recovery administration has
wide powers, so wide that it may license
or refuse to license, or revoke licenses, OF
industrialists If they violate the So
called codes OF fair competition which
are to be set up by the various indus
tries in the country. The warning OF
the head of the recovery administra-
ton may therefore well be needed.
The heads of industries in this coun-
try are as alive to the needs OF the sit
uation as is the head of the recovery
administration. Gen. johnson asserted
that "our best people understand that
this is no time to get rich quick" II
industry gives its wholehearted and
earnest support to the plans for recov-
cry now being worked out, there Is the
chance of success. Indeed, there Is
great hope Of success. But such CO.
operation is essential. And II those who
are not among "our best people" under
take to throw monkey wrenches into the
machinery, the recovery administration
Is likely to act with drastic severity in
their cases.
It is clear that the trade organiza-
tons of the country have become almost
overnight of greatly increased impor-
tance 1t is through these trade organ
izations that codes Of fair competition
for the individual industries are now
being worked out. No matter how great
the individual unit in an industry may
be, it would appear to be the better
policy 10 join with the other units In
the formation of these codes. Otherwise
the rules of the industrial game will
be set up without 1t, and once approved
by the President will likewise apply to
that particular unit. provided 1t con-
tinues to operate In interstate COM
merce.
Gen. johnson undertook to clear the
air also regarding the relations which
labor and employer face under the ad-
ministration of the recovery act. He
insisted that it is the purpose Of the
recovery administration to see that
labor is paid a living wage. He said
that the law specifically provides for
the right of collective bargaining for
the workers and that this provision Of
the law would be rigidly enforced. On
the other hand, he said that he saw no
necessity for labor to rush to organize
and submit collective demands before
industry submits codes of fair compe-
tition, and no necessity for the employ
ers to set up company unions" to cut
of labor unions before agreements are
submitted In this the administrator is
quite right. If employers or organized
labor 60 into this movement with their
minds made up TO get as much as pos
sible for themselves, the success Of the
movement must be hampered. Labor
and employer, under the plan Of cam
paign. must be allies and must move
forward together