Evening star., 1933-09-12

Action Stronger Than Words.

There are apparently two distinct
epecies Of "chiselers" owing their birth
to the recovery program. One Of these
Ii alleged to be the price booster who,
taking advantage Of the general drive
to raise prices and, particularly, the
farmer -benef1ting process tax, has shot
his prices to consumers far above q
level that would be justified by actual
production costs. The other species Is
represented as making employees, by one
trick or another, pay for the employers
honor of flying the Blue Eagle. The
indications are that the time for
cracking down" on both Of them is
approaching.
The Agricultural Adjustment Ad.
ministration has sent warning to
those who have raised cotton textile
prices on the strength Of the cotton
processing tax. Dr. Fred c. Howe. con-
sumers' counsel Of the Agricultural
Adjustment Administration, has COM
pleted price survey which is said to
show that prices Of some articles have
been increased from forty to fifty per
cent, the price raise being attributed
to the cotton processing tax. DR.. Howe
has called attention to the Treasury
regulations for collecting the tax. which
makes Misrepresentation concerning the
tax q misdemeanor punishable by
fine Of $1,000 or year in jail or both.
The survey Of prices is reported by
George N. Peek, agricultural adjustment
administrator, to have detected specific
examples Of unreasonable profit taking.
Mr.. Peek says that 1--WE are out to stop
price gouging and will 60 to lengths to
prevent it."
At the same time, Gen. johnson,
who has done a good deal Of threaten
ing in connection with code signing,
indicates that something soon may be
done in regard to the other form
Of "chiseling" by employers who have
been quick to display the Blue Eagle,
but tardy In faithfully living up to its
provisions. His course of action in this
respect remains unrevealed. but it has
been suggested that the first step may
be to set up system of ironing out
the complaints by system Of per-
suasion and conciliation before sterner
measures are brought to bear.
1t is becoming rather obvious that
test is really facing both the Agri-
cultural Adjustment Administration and
the National Recovery Administration
In the case Of the former, prices for
farm products are tagging behind the
price Of industrial products to an ex-
tent that is placing in jeopardy the
success Of the farm recovery program.
Gen. johnson, at the same time,
burdened as he Is with the difficulties
over the coal situation, is manifestly
preparing himself for the second
phase Of the N. r. A. campaign, which
consists in taking decisive action. not
against the non-signers, but against
those who have signed and are not
fulfilling the responsibilities which ac-
company signing. 1t is known that the
complaints against "chiselers" are pour
ing in, and everybody must be aware
Of the number of word-of mouth stories
going the rounds these days of how the
code is being beaten" at the expense
Of employees.
Making public few specific cases
Of unjustified price boosting and OF
hiding behind the Blue Eagle to chisel
employees, coupled with whatever form
Of punishment there may be in either
case, might be advantageous to both
arms Of the recovery campaign. Mere
warnings, as in the case of the gold
hoarders, are too apt to lead to the
popular assumption that the United
States Government, after all, is merely
blufing.