Evening star., 1934-03-25
M'CARL WILL BE JUDGE
In NEXT n. r. A. DISPUTE
Test Will Result From Order Requir-
ing Code Adherence of Bidders
on T.. S..Financed Contracts.

WlIC11 IllClG was SpCClllC pIUNlSlUIl
for 1t In the appropriation.
Such procedure ran directly counter
to statute enacted in 1914, which
says: There shall not be expended
out Of any appropriation made by
Congress any sum for purchase, main
tenance. repair or operation of motor
propelled or horse-drawn passenger
carrying vehicle for any branch of
the public service of the United States
unless the same is specifically author
lied by law"
In defending the purchase, the Sec
retary wrote: This act IN. r. A.
does not specifically provide for the
purchase of passenger carrying mo-
tor vehicle and the purchase of such
vehicle under this appropriation
may only be justified by the fact that
the act is an emergency measure and
should be literally construed"
Expenditure DisaIlowed.
Disallowing the expenditure, McCarl
said:
While the appropriation was made
in broad terms for the purpose of
carrying into effect the provisions of
the national industrial recovery act,
and for each and every object thereof,
to be expended in the discretion and
under the direction of the President,
it is not to be assumed 1t was in
tended to be used for expenditures
specifically prohibited by law.
The act (of 1910 vests no dis
cretion in either administrative or &C
counting officers and, necessarily. must
be given effect even though it may
not be considered conducive to the
best results.
If more latitude in such matters
is administratively considered neces-
sary, there would seem for considera-
ton the desirability of placing the
problem before the Congress now in
session.
In other words. the controller gen.
erals fiat there was that if the plea
OF emergency was to be maintained,
Congress was going to have to say So.
Conformity General.
Despite some departures, McCarl's
decisions have gone along pretty well
with the purposes of the N. r. A. in
the multitudinous questions he has
been called upon to decide in the past
few months, but he ha7 not hesitated
to dissent when occasion seemed to
him to demand. Notably along this
line was his ruling that thus far has
tied up the vast Slum- clearance plan
proposed under civil works and was
productive of sharp clash with Sec
retary of Interior Ickes, the admins
traitor.
The controller general also Is un-
derstood to have questioned the pro-
posal to finance private purchases OF
electrical household appliances as a
part of the trimmings for the empire
being created in the Tennessee Valley.
thereby delaying action, although
this case has not yet come into the
open officially.
Unionizat ton Battle.
The battle over unionization in the
motor industry that has stirred the
N. r. A. contributed toward obscur-
ing the importance of President
Roosevelts order on code compliance,
but it did serve to give point to just
what it would mean II upheld. For
example. one concern subscribing in
full to the motor code, including the
controversial section Ia, dealing with
the right of employees to bargain col
lectively, would be in position to get
all Government business, if able to
handle it. This situation, in vary
ing degree. would prevail universally.
Contrarywise, an individual like Ford,
who refused to put his name on the
dotted line, but who, it was admitted,
was performing satisfactorily, would
be barred.
The question is expected to arise
any day now.
The conflict between the McCarl
decision and the executive order has
put Government purchasing officers
"on the spot" forcing them into a
situation where they will have either
to ask the controller general for in
structions or take a chance on going
ahead and running into trouble.
With such prospect, it is thought
more than likely that they would 60
to the controller general as a precau-
tionary measure. In the second place,
any non-signatory can bring up the
matter. if proposing to 60 after Gov
ernment work.
Eventually, it may involve amend
ment of the recovery act ''by the
Congress now in session" as McCarl
suggested in the s845 auto-buying
case.