Evening star., 1934-06-29
RED TAPE RETARDS.
PROGRAM OF P.W.A.|
$500 Documents Required
to Show Concern CON-
plies With N. R. A.
BY DAVID LAWRENCE.

Red tape reached the heighth of its
unpopularity in wartime, wnen it was
discovered that it took exactly six
days for an interofice memorandum
to get from one Office to another just
across the hall. The demand came
from every side to abolish red tape
and get things done.
Somewhat parallel is the situation
today in Washington as the urge TO
get the public works money into dis
tribution is coming from social work.
ers and labor leaders and industry
generally But the bureaucrats here
are still thinking up ways and means
of increasing the expense and the
trouble of business in bidding on
Government contracts.
$500 Items of Proof.
Thus. a circular just issued. which
must be signed by all firms bidding for
Government business, requires not
merely that the bidder shall certify
that his company is complying with
the codes or the Blue Eagle agree
ments. but he must give assurance
that everybody from whom materials
or supplies are purchased is also COM
plying.
In one instance of large indus
trial concern it has been estimated
that the total number of documents
required to assure the Government
that the N. R. A was being complied
with ran as high as 5000. In the case
of small companies single trans
action involved as many as 1000 GER
tificates of compliance.
An examination of the text of one
of these compliance orders reveals
that the manufacturer is bound to in
for any loss incurred "by reason of
noncompliance" Indeed, if the bid
is thrown out after investigation has
revealed that a certificate of COM
pliance somewhere along the line was
improperly submitted by some one of
the 100 or more firms involved, then
the actual bidder is protected against
loss by guarantee from each of the
signatories to the certificate of COM
pliance.
Must Accept Decision.
Also, in the event of a dispute, the
bidder agrees in advance that he will
accept as final and conclusive and
binding" upon him "the decision of
the administrator for industrial re-
covery or any agency which he may
designate to decide the question as to
compliance or noncompliance"
So there is no chance for court re-
view if injustice occurs. But the most
far-reaching pledge is involved in
signing the compliance order The
bidder must certify not only that he
is obeying the code or codes under
which his industry or business is op-
Grating, but he must make such that
compliance is forthcoming from any
company which supplies ANY ar
ticles, supplies or materials" which are
used ''in whole or in part" in filling
any contract or purchase order.
Slowed Up in Red Tape.
There are, of course, businesses of a
service character which are not under
codes, but the bidder for Government
contracts must take the trouble to
inquire if these service businesses
signed the Presidents unemployment
agreement or any extensions of il
which entitle them to fly the Blue
Eagle. He cannot satisfy the Govern
ment by merely stating that he has
found compliance on every side. He
must have sworn documents, which
means that the proper notarial seals
must be affixed and all the other rec
tape complied with in making up
official documents.
The Government allotted year age
about $3,300.000,000 of public works
funds, but, to date, hardly a third OF
it has been spent. The projects are In
process of being developed, but the red
tape slows them down. 1t has been
estimated that about 100000 men have
been returned to employment out of
100000 out of public works money
More would be back at work now if
the red tape were abolished, as it was
in wartime.
Copyright, 1934)