Evening star., 1933-10-28
Getting on Dangerous Ground.

Gettlng on dangerous Ground.
1t would be helpful to those who
have Cnly a superficial knowledge Of
the various elements which enter into
the conflict between the N R. A. and
the Ford Motor Co. (and this means
practically everybody if statements of
fact could be substituted for what
seem to be statements of opinion by
both siGeS. There has been no clear-cut
statement of the facts upon which the
Government has based its determina-
ton to resort to the complicated and
highly dangerous business of a boycott
against one of the country's leading
manufacturers There has been much
expression Of individual opinion at the
Informal gatherings known as press
conferences.
If by threatening to turn the matter
over to the Attorney General" Gen.
Hugh S. Johnson, National Recovery
Administrator, means that he plans to
take the Ford case into the courts, such
action appears to be wise. So contra
dictory are some of the statements
made about this affair that the courts
appear to be the only proper place for
determining the merits of a controversy
which. it is plain to see. extends in its
inlplica ions far beyond the possible
penalizing of a manufacturer Of auto
mobiles and the tens of thousands of
persons whose living depends upon such
manufacture.
The national recovery act provides
for the adoption Of codes Of fair COM
petition" fer industries. These may
either be presented to the President by
trade associations. or, upon complaint
of unfair practices made to the Presi-
dent, may be prescribed by the Presi-
dent Violations of codes shall be con-
sidered as unfair methods of competition
under the Federal Trade Commission
act The United States District Courts
may prevent and restrain violations.
Convictions for violation bring a fine
of not over $500 for each offense. each
day being considered separate offense.
If the President finds destructive wage
or price cutting, or other activities con-
trary to the purpose of the act, he may
require business concerns in the trades
or industries affected to obtain licenses
to operate Licenses may be suspended
or revoked by the President for viola
tions of their terms and the penalty
for carrying on business without Ii
cense, or in violation of its terms, shall
be a fine of not more than $500, or
imprisonment for not more than six
months, or both, each day being con-
sidered separate offense.
Such adornmentS as the Blue Eagle
and the press conferences with Gen.
Hugh s. johnson are growths subse-
quent to the passage of the recovery
act OF course, nothing is said in the
act about cracking down" on any
body. or applying boycotts. Specific
penalties are provided for these found
guilty of specific offenses, after trial in
the courts Under an executive order,
Government contracts contain the clause
that the manufacturer or the contrac-
tor must abide by the codes Of fair COM
petition or the Presidents re-employ-
ment agreements. This supersedes the
law recurring submission of contracts to
the low bidder.
Nobody seems to know whether the
Ford company is guilty of violation OF
the code of fair practice for the auto
mobile industry, although everybody
knows the Ford company has not signed
the code. The Ford company has also
declined the distinction of wearing a
Blue Eagle. Representatives of the
company have said that the company
would have to ''live down" to the code,
not up to it And while one Of the
provisions of the automobile code pro-
vides for the submission OF manufactur-
ing and employment statistics to the
automobile trade organization - the !
Automobile Chamber of Commerce-the
distribution of questionnaires to the
automobile industry By which these fig
ures will be revealed has just COM |
menced The overt act" of an actual
refusal to submit figures revealing |
"trade secrets" has not been committed |
by the Ford company. Reports quote |
Ford officials as saying the company |
plans to submit the required data.
In other words, the Ford company, as
far as anybody knows, has violated no
law. In case Of such violation, Gen.
johnson has already made threats !,
which his manner indicates would be
enthusiastically carried out. What the
Ford company seems to have done is
to violate what authorities interpret as
the spirit of the recovery act. And
when the Federal Government resorts !
to the boycott to enforce compliance
with such nebulous things as the spirit
of a movement it enters treacherous
ground The safest refuge for all con-
NAI d L.