Evening star., 1934-05-21
Richberg Contends Report
Based on Biased Testin0n,

Continued From Sixth Page)
Also. 20 exemptions from the provisions
of article XII have been granted on
account of hardship and there are 80
pending cases.
Case Not Significant.
This makes it evident that the one
case investigated by the Review Board
is not significant: but 1t Is significant
that the application in that case which
was rejected by the code authority was
later granted. leaving, therefore. no
complaint of the unfair operation Of
this provision.
The board presents legal argument
to the effect that the Supreme Court
in the New State Ice Co. case (285
U. s. 262) held that the Oklahoma law
requiring the approval of the Corpora
ton Commission for a license to en-
gage in this business, was unconstitu-
tional.
1t is interesting to note that the dis
senting opinion in this case was written
by Mr.. Justice Brandeis. whose life
long opposition to monopolies and pro-
lection OF the rights Of small enter
prises is we'll known, and that the dis
senting opinion was based upon the
authority of the Government to pre-
vent unfair destructive competition by
means reasonably adapted to that pur-
pose; and that a majority of the Su-
preme Court in the recent Nebbia case
sustained the exercise OF such govern
mental authority in upholding the
New York law regulating a minimum
price for milk.
Objections Theoretical.
Under these circumstances, when
the ice industry has adopted and
participated in the administration Of
the present code since its approval.
October 8, 1893. and the Review
Board. with its Jealous advocacy Of
cannot present evidence Of one exist
ing substantial complaint against the
code, the conclusion of the board that
monopolistic practices obtain and that
small enterprises are oppressed Is
wholly theoretical and at complete
variance with the facts.
When any one is so injured by the
operation of Article XI as to seek
legal redress. it will be possible to
obtain a judicial decision as to the
legality of a provision which can
certainly be supported under the
recent decisions of the Supreme
Court.
In the meantime, the satisfaction
of the industry with the practical
operation of the code should be better
evidence OF its wisdom than the un-
supported theoretical objection offered
by the Review Board
Cleaning and Dyeing: 1t is an in
teresting commentary upon the opin-
ions of the board that so few OBJ
jections and such limited findings
and recommendations should be made
concerning this code, which has
proved to be one Of the most dificult
of administration by the N. r. A,
and the cause of probably more justi-
fed complaints than any other code.
Scandal in Industry.
The code was designed to prevent
racketeering and cut-throat compe-
tition in an industry wherein these
evils had become a national scandal.
But 1t has proved to be very difficult
to obtain general agreement through
out the industry upon what consti-
tutes fair competition and to obtain
an effective self-government.
This far-spreading business. COM
posed of thousands of small units, is
only partially organized for self-regu-
lation, and established standards of
fair competition can be easily broken
down by few chiselers in each COM
munity.
AS a result. the question of drastic
revision of this code has been under
consideration by the N r. A. for
many months. The hasty investiga-
ton and superficial conclusions of the
Review Board offer no aid in the
solution of this problem.
Bituminous Coal: The findings of
the review board, based on trivial and
unreliable testimony. result in conclu-
sions of pathetic triviality or sweeping
inaccuracy. Prior to the adoption of
the code the processes of savage,
wolfish" competition were beautifully
exemplified in this industry. wherein
wages we're reduced to starvation lev
els as prices were forced down below
any reasonable cost of production
through the savage competition of
coal producers to sell their coal in
diminishing markets.
Low Wages Raised.
In order to relieve these conditions
somewhat, marketing agencies have
been formed by some producers, the
validity of which have been sustained
by the Supreme Court on the ground
of economic necessity in the face of
attacks upon their alleged monopo-
listic character.
Under the provisions of the code 1t
was made possible to raise the wages
of 100000 miners by an average ap-
proximating one dollar day and to
eliminate in many regions the star
vation wages which had prevailed,
through wage increases which in
many instances exceeded 100 per
cent.
The possibility Of paying these
wages and stabilizing the industry
depended wholly upon the establish
ment of fair prices in different pro-
ducing areas, leaving, however, these
areas highly competitive with other
areas, thus assuring to the consumer
protection against exploitation.
The immediate result of this i'm
provement of prices was the financial
rehabilitation of hundreds Of small
producers and also the opening OF
actually thousands of small mines
that had been unable to sell coal
under the previous cut-throat compe-
tition.
Petty Complaints"
In the face Of these actual results,
the nettv complairlts presented In the