Evening star., 1934-08-05
BORAH CHALLENGE
TO MIRA. UPHELD
Administration Official Ad-
mits Price-Raise Order
Is Invalid.
CONTINUED Prom First Page J

lContlnued From First Page
Of Oienns Ferry asked Borah IL he
should comply with an order issued
by Sid Graves Of Twin Pals to charge
housewives q cent more loaf. Borah
told Nestor to disregard the order,
volunteered to supply legal defense IN
event Of prosecution. and said:
Il contend that they have no right
70 direct you to increase the price Of
your bread. I not only contend they
have no constitutional right. but that
1t Is indefensible in morals and eco
Monies"
Borah Reports Increase.
Borah said also there had been a
general bread-price increase Of cent
loaf throughout the country. N. r. A.
lacked figures for the Nation. but said
the nread-priee structure was handled
on q marketing area basis and not
nationally.
Practically all prices we have in
dorsed have been to help the little and
moderate-sized baker" White said.
Since last Autumn the industry as q
whole has been In bad shape, espe-
eially the little fellow who has been
throttled by chains and big bakers.
There is no authority behind bak-
cry prices, but we are cooperating in
areas where we know small bakers are
hard hit and we want them TO know
we are going to help them compete
with their bigger competitors"
AS White explained it, chain stores
furnished an important link in the
bread price situation. He outlined
this typical procedure:
Bakers who find themselves unable
TO compete with quantity distributors
form local authority to seek price
stabilization.. The State N. r. A.
director meets with them and studies
representative financial statements.
Usually Karl Hauck, Consumers Ad-
yisory Board member especially as
signed to the baking industry, also
makes study. Only IL it Is found
that substantial number of small
bakers are operating at a loss does
q recommendation for higher prices
go forward to N. r. A.
Cooperation Good.
II N. r. A. approves. it takes the
matter up with chain store distribu-
tors in the area and seeks their CO.
operation in getting small bakers a
better income. This cooperation,
White said, has been good" 1t is
at this stage that higher price may
become effective in the area, but any
one may break the agreement without
fear of prosecution.
Fred G. Howe, consumers counsel
OF the Farm Administration, said the
average retail price Of bread during
the year ended June 80, 1894, was 10
cents compared with 658 cents during
the year ending June 30, 1888.
His organization estimated the aver
age cost Of bread ingredients during
the same two periods at 2.83 cents
compared with 1893 cents.
Senator Pope's statement said:
! am very much surprised at the
story that Senator Borah has advised
the Nestor Bakery at Glenns Ferry.
Ida, to openly defy the National Re
covery Administration. There must
be some mistake about it. 1t is ap-
parently alleged that the N. r. A.
has authorized this baker to increase
the price of his bread. That is abb
soluteiy impossible. There is no rec
ognized code authority for the baking
industry in Southern Idaho. Neither
the National Recovery Administra-
ton nor the National Bakers Coun-
ell, which is the National Code Au-
thority for the industry, has ever
heard Of one.
Exempt From Agreement.
I'm addition to that, an order by
President Roosevelt, issued October
%, 1898, provides that employers who
operate not more than three estab-
lishments and are located in a town
of less than 2,500 are exempt from
both the Presidents unemployment
agreement and provisions of codes
relating to hours Of employment,
rates of pay and minimum prices.
Nestor, operating solely in Glenns
Ferry, is clearly exempt.
The charge that NeStor received
such an order is without any official
foundation. It looks very much like
smoke screen built UP to discredit
the administration for purely politt-
cal purposes.
I'm spite of the fact that a con-
gressional campaign is approaching
in Idaho, 1t is high time the people
disregarded partisan politics and ac-
quainted themselves with the facts
about N. r. A. If the actual provi-
sions of the national industrial re-
covery act and the regulations there
under are studied somewhat both the
charges of monopoly and 'uncon-
stitutionality' will become much less
frequent"
EXPLANATIONS INTERESTING"