Evening star., 1933-11-05
BY OWEN L. SCOTT.

The mighty Federal Government has
about made up its mind to put out Of
Business little Pennsylvania milk
dealer because he refuses to increase
the price of the milk he sells to his Gus
TONERS.
The Government is threatening to
step across State lines and close up Oil
wells belonging TO private citizens. so
that the oil industry can maintain
higher gasoline prices for automobile
users.
Already peach canner in California
has been punished by Federal court
because he canned more peaches than
the Government said he could, and
Henry Ford has been threatened with a
Government boycott because he did not
Sign up under the Blue Eagle.
These first samples of the new deal
in action are being received with min
gled reactions out in the country. That
is the reason Gen. Hugh johnson is
heading into the West to explain once
more what N. R. A. means. 1t is the
reason. too. for a whole series Of moves
aimed to remove consumer RESISTANCE
to higher prices.
What the people are seeing is the
early effect Of economic planning.
President Roosevelt is as determined
as ever to replace the old unbalanced
business machine that preceded the
1929 collapse with one that is more
definitely under control. He thinks that
is the only way large portions of the
population can get fair share OF the
country'S wealth.
Under the old system. the Pennsyl-
vanIa milk dealer could Go anything he
wanted to do to attract business. He
could cut prices to his customers and
cut prices paid the farmer for milk. II
he could get away with it. But under
the new planning the Government steps
in. 1t figures that if one milk dis
tributor is allowed to cut prices, others
will soon have to do the same to pro-
tect their markets. Finally the whole
trade may be demorallZed. so under
the powers of the agricultural ADJUST
ment act the Government lnterVeneS,
brings producers and distributors to-
gether. reaches an agreement on prices
and production control. and then I'M
poses a license to make those prices
and production requirements effective.
Then the dealer who violates tins
agreement may have his license to do
business taken away from him. II he
a license the Government could fine
him 81 900 day or put him IN lah 1or
six months for each offense. Besides
the Pennsylvania who faces the loss
of his license there are ll6 dealers IN
the Chicago district who soon may f1nd
themselves in similar situation.
The case of oil is similar only oil
comes under the national recovery act.
Here, as in agriculture, was an industry
suffering from chronic overproductlon.
In spite of various State attempts to
bring about a supply y-and-demand bal
ance, conditions went from bad to worse
until much of the industry faced bank
ruptcy.
Now the Government has moved in
with its plan of production control and
price fixing Automobile users are pay
ing more for gasoline. but the industry
is paving above 81 barrel instead OF lo
TO 25 cents a barrel for oil; it is adding
about $500, 100000 a year to its wage
total and is putting about 250,OOO men
back to work. If any State is unable
to control its producers so that the pro-
gram of planning is upset, the Oil ao-
ministrator can shut this States pro-
duction out of interstate commerce, or
he might even go in and shut down
wells
The California peach canner who was
enjoined in Federal Court from contln-
uing operation had threatened another
phase of the new economic planning.
He had been bound by an agreement,
reached under Government guidance,
to nav growers about 400 per cent more
for peaches than had been paid last
wear. But in order to maintain that
price this Gamer and others were to
limit the amount of peaches packed.
When the agreement was violated the
Government went into court and en-
ioined the violator. Otherwise, Federal
attorneys argued, the actions OF one
man might have upset the Whole re-
covery program OF an industry.
These are typical instances of eco
nomic planning as it is beginning to
be applied. They indicate that the time
is past when a man can do as he pleaSeS
with his money or his business. without
considering the effect of his actions on
his neighbor and on the community.
More straws that show the way the
wind is blowing in the inner sanctums
Of the economic planners are flying past
with increased frequency.
President Roosevelt decides almost
simultaneously that retail storekeepers
should be protected by the Government
against price cutting. and that the price
of steel rails offered by the steel in
dustry to the railroads was too high.
The Government bargains with IN
dustrialists to raise wages and to estab-
lish minimum wages, at the same time
that it interests itself in establishing
maximum salaries. Under planning the
Government is interested in seeing that
an industrialist does not take what 1t
considers too much of the earnings OF
industry for his own use, while denying
to workers a larger share of those earn
ings.
The Government struggles to lend
money in huge quantities for building
Of public works and for other construc-