Evening star., 1933-08-11
JOHNSON PREDICTS
ECONOMIC DEATH"
TO N.R.A. WOLAT0RS
"BIue Eagle" Will Come Out
of Windows if Offended,
Press Informed.
RECOVERY CAMPAIGN
TO GAIN INTENSITY
1ntrastate Utilities and Similar
1ntrastate Utilities and Similar
Business Not to Escape Regulative
Power, Says Administrator.
BY the Associated Press.

BY the Associated Press.
fiat prediction that a case of reyo-
cation of the Blue Eagle" emblematic
OF compliance with the National Re-
covery Administration, will arise and
that 1t will mean economic death" to
the offender was made today by Hugh
S. johnson, the NJ r. A. administrator.
At his press Conference Johnson prom
ised that violators of modified presi-
dental re employment agreements
would be disciplined if it were found
that they were not complying with their
pledge to raise wages and increase en-
ployment by shortening work hours.
He added, however, that he intended
to let the situation rest for a brief Pc
riod in the hands of local committees.
But the time is coming" johnson
said, when somebody is going to take
one of these Blue Eagles off of some
ones window in clear-cut case"
And that is going to be sentence
of economic DEATH" the administrator
added sternly, leveling his finger at
the newspaper men gathered before
him.
Intrastate Application.
Questioned concerning the status of
intrastate utilities and similar busi-
nesses, johnson said that while they
might not be within the regulative
power of the national recovery act,
the blue eagle would reach them.
He pointed out that the possibility Of
strictly 1ntrastate operations being be-
yond Federal control is one of the rea-
sons 'for this blue eagle business"
This blue eagle doesn't know any,
thing about intrastate and interstate
commerce" the administrator said,
and think it's working cut pretty
we'll"
Commenting on his visit to Baltimore
for an address last night, he said un-
employment figures and the number of
blue eagles on the windows there did
| not appear to be in conformity, but
that the Recovery Administration ad-
visors there had expressed satisfaction
that the problem was working out all
right.
The administrator repeated that it
was not intended to set up police or
ganization within the Recovery Admin
1stration. He said one of the reasons
the Federal Trade Commission had
failed to accomplish the objectives set
for 1t by its proponents was that it
had become policeman"
Coed Faith Assumed.
Violations of permanent codes, where
they are not cleared up after concilia-
tory action by the administration. will
be referred to the Federal Trade Com
mission and then to the Department
OF Justice if necessary the admins
traitor explained. but said:
We are going to assume good faith
until We see something different"
Meanwhile, a presidential order and
governmental example pushed along the
Recovery Administrations campaign to
buy under the Blue Eagle emblem.
Closely following the remark by Gen.
Johnson that 1t would be curious" if
the Government dealt with firms not
coming in under the recovery program,
President Roosevelt last night backed
the administrators words with presi-
dental order virtually fulfilling John
sons prediction
Mr.. Roosevelt, at the Summer White
House, issued an executive order that
aH Government contracts would be can
celed If the contractor did not comply
with the recovery code. Government
contracts eventually will include a big
part of the $4,000, 100000 public works
fund
At almost the hour the presidential
order was issued, Johnson, in his ad-
dress at Baltimore, sand the public must
buy now, it must buy under the Blue
Eagle and it must buy to the full of its
reasonable and prudent needs" This,
Continued on Page 2, Column 81