Evening star., 1934-05-03
ECONOMIC PLAN
DECLARED NEEDED.
Gen. Johnson Expresses
View in Address Before
Trade Executives.


Johnson, head of the N. R. A, ad-
dressing a dinner meeting of Amer
lean Trade Association Executives
an allied group of the Chamber OF
Commerce Of the United States at the
Mayflower.
This view was expressed in re-
sponse to a query as to the perma-
nency of the N. R. A. made by one
OF the business men, who, in response
to an invitation, directed a cross
fire of questions at Gen. Johnson,
after he had in a brief, eXtempo-
raneous speech outlined the general
objectives Of the recovery admins
tratlon.
Gives Customary Answers
As far as the longevity of par
ticular features Of the act are con-
cerned, Johnson. speaking slowly, gave
his customary response to this ques-
ton which often is asked:
If there has been any good demon
strated by the recovery act, it will
live and ought to live; if there has
been any bad, it will die and ought
To die"
Il have no doubt" he emphasized
"that part of the recovery act will
be permanent, but what part l don't
know"
johnson also said it would be neces-
sary to conduct another ''populariza-
tion" campaign for the new and
permanent code Blue Eagle emblem
and that this would be instituted
within so days.
In response to another question, he
asserted that what form permanent
unionization of industry took was
entirely beyond his control.
Audience Gets Laugh.
The recovery administrator spared
of another blunt query as to which
had been the most loyal to N. R. A
industry or labor
They've been equally both ways"
johnson said, while his audience
laughed at both the question and
answer.
Asked regarding the enforcement
of codes on small retailers such as
grocerS, haberdaShery stores, small
restaurants and similar enterprises,
the administrator repeated a pre-
viouSly expressed opinion that the
"ittle fellow" was not being sacrificed
at the expense of larger organizations.
johnson indicated it was his per-
sonal belief that the enforcement
penalties of the recovery act should
expire with the temporary act, that
perpetuation Of the plan should be
by the desire to cooperate.
The administrator opinion regard
ing differentials in the application Of
codes for various sections of the
Nation was asked by one member.
I'VE don't believe in differentials
in general johnson said, but We
don't believe we have the right to
move into a situation and by some
explosive action disrupt the industry"
johnson described himself as pleased
with the few appeals from code regu-
lationS for industries in connection
with the section covering tariff pro-
lection. He said there were but 25
such petitions and that they all had
been placed before the Federal Trade
Commission.
Emphasizes FIexibility.
johnson told his audience that in
"umpiring" between industry and
labor, as recovery administrator, he
knew he was going to have pop bot
ties and dead cats" thrown at him.
johnson emphasized as one of the
desirable features of the N. R. A set
up its fleXibility.
You go to Congress and get law
and if that law is bad you can't
change it without a decision of the
courts, an interminable process" !"
Johnson said. In the meantime, no.
body can tell What will happen.
But under the recovery act and
administration of the codes the Presi-
dent can change anything that proves
TO be a mistake in q hours 1t was
the only kind of a formula on which
he could start an experimental proc
esS OF this kind, but l think it is its
safety and salvation.
People can make a case. If they
are being unduly oppressed, if this has
been mistake, if that course should
be changed, all that has to be done
Is to come down and make the
showing"
The function of the Recovery Ad-
ministration was pictured by its ad-
ninistrator in these words:
You have two interests, at least at
this formative time, that are more or
less adversaries. Each wants the
maximum that can be had out of their
side OF the bargain. An umpire had
to be set up between these two in
terests. There were several ways in
which this problem could have been
approached.
Indeed, think an attempt was
made to approach it when the Fed
eral Trade Commission was set up
under the antitrust act. The idea
was that policies could be drawn by
Government bureau after a great
deal of study, which should be fol-
lowed by industries. The finest kind
OF work has been done on that.
Controversy Was Planned.
att seemed however, in drawing
up the recovery act in the heat of
a great emergency that we couldn't
wait for that-something more would
have to be established and a quicker
procedure drawn up. 1t seemed
in setting up our organization that
controversy was the best determina-
tlon OF proposed policies, and, there
fore, the recovery act was set up for
the purpose of controversy. 1t was
set up with the idea that the admin
tstration itself should be impartial.
The law required that codes
should be submitted by the industry
itself. The labor element of the prob
lem was not supposed to submit pro-
poSals, but they were supposed to
present their point of view as to pro-
posals and between these adversary
interests the public interest as rep
resented by the administration would
have to be maintained"
A boiling down" process was de-
scribed by johnson as having reduced
the original 5000 codes submitted to
slightly more than 400. He said the
consolidation process is continuing.
Johnson cited as an example that
one single industry has been carry
ing on under 54 different codes. He