Evening star., 1933-06-24
Modification of Industry Con-
troll Act Proposed to
Allow Practice.
BUSINESS MEN ASKING
SHARE IN FIRST UPTURN
Want Agreements Among Selves
Not to Sell Goods Below
Cost of Production.
Price-fxing notifications in the

Price-f1Xing notifications in the
National Recovery Administrator s
basic codes for fair competition within
industry were being sought today as
the best way out of its first serious
difficulty with business over its program
for industrial control.
Business leaders are demanding that
they be allowed to share in the first
upturn of buying power along with
labor, and Gen. Hugh S. johnson, ad-
ministrator for the industrial control
section of the administration, has dis
closed that he would recommend to the
Cabinet Advisory Committee amending
of the administrations policy against
price fixing.
This would allow, 1t was explained
agreements within an industry to the
effect that it will not sell for less than
the cost of production. The original
plans Of the administration were to
keep prices to a minimum to allow
the curve Of purchasing power to rise
above the line of production.
Hold Price Fixing Essential
Johnson's idea has been that the
first codes presented by industry for
his approval should pertain only to
minimum wages and maximum hours
of work. but many industrial leaders
were understood to be taking the posi-
ton that price fixing or something
equivalent to wipe out what they deem
unfair competition from sweatshops
was equally essential
So clearly has this line been drawn
that 1t was expected that the cabinet
committee headed by Secretary Of Com
merce Roper would be asked to consid-
er the problem. which arose first dur
ing consideration of the recovery legis-
lation in the Senate.
At that time Senator Borah, Repub-
lican, of Idaho, obtained approval of
an amendment reading:
Provided, that such code or codes
shall not permit monopolies, price fix
ing or monopolistic practices"
Amendment Stricken Out.
At the instance of manufacturers and
with administration support, the price
fixing part Of the Borah amendment
was stricken out in conference. This
left the presumption, some business
leaders contend, that price fixing was
permissible.
However, johnson has taken the view
that too rapidly rising prices would
has asked that only wages and hours
be treated in the first trade practice
agreements submitted. This was done
by the textile trade, upon whose code
hearings will begin Tuesday, presided
over by Johnson
In auti. c-itative circles, it was said
that some industries nevertheless were
considering a plan for presenting the
agreements, with hours and wages ef-
fective Immediately, but calling for
price fixing at the expiration of 80
days.
These persons took the view that 1t
was intended that through the relaxa-
ton Of the antitrust laws business
should get some compensation for in
creasing wages and spreading work
through reduced hours of labor.
Considered Important.
They argued that if this compensa-
ton was to be obtained, the time to
seek approval was at the same time
labor was aided
So important Is the price-fxing pro-
vision considered in some industries
that several not usually considered
agricultural have discussed with the
farm relief administration the posi-
bility of adopting codes to comply with
this act, which permits price fixing,
instead of the industrial administration
Meanwhile the Federal Trade Com
mission met and approved an up-to-date
compilation of the numerous trade prac-
tice conferences held under commission
auspices in more than a decade, to-
gether with the numerous rules adopted
by various industries
Commissioner Ewin Davis said the
commissions experience in this field
afforded virtually the only precedent
for the type of industrial agreements
being sought under the national re-
covery act
Il do not know to what use admins
traitors of the industrial recovery act
will choose to put the commissions ex-
perience in this field" Davis said. The
commission, of course, has operated
always within the limits of the anti
trust laws and has had no authority to
approve price fixing"
Trade Practices Discussed.
Davis said that should the $50 trade
practive agreements worked out by the
Trade Commission be used by johnson,
he was unable to say whether the in
dustrial control agreements would
supercede trade practice rules or
merely supplement existing agreements
In administering the trade practice
agreements" Davis explained, the
Continued on Page 2, Column IL
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