Evening star., 1934-11-02
Labor Hopes to Win EIimi-
nation of Merit Clause
in Later Fight.
FORD'S PROSPERITY"
PLEASES WHITE HOUSE
Roosevelt Confers With Chryslel
and Sloan Before Acting on
Industry Decree.
BY the Associated Press.

President Roosevelt, who Is said TO
be gratified but silent on Henry
Fords announcement that for his
company the depression is over" is
expected to prolong N. r. AS sway
over the motor car industry.
There was every indication that be-
fore nightfall the administration
would extend for so or 80 days the
Blue Eagle code from which Ford is
q conspicuous holdout.
The President has intervened di-
rectly in an attempt to calm a row
between unions and industrialists over
the code. The American Federation
Of Labor wants to change the code,
which expires tomorrow. 1t seeks,
among other things, to establish a 80
hour week and delete the famous
merit clause"
Two months ago, when the code
was extended for so days. Hugh S.
Johnson promised labor hearing on
modification. This was opposed by
manufacturers. But a temporary ex-
tension would give labor a new oppor-
tunity for achieving its goal.
Confer With Roosevelt
White House conferences BY the
President, Clay Williams, N. r. A.
chairman; Walter Chrysler and Al
fred p. Sloan and Donaldson Brown
Of General Motors cleared the way
for action.
There were signs today that labor.
despite the demand for a 30-hour
work week. had concentrated on the
merit clause. This permits hiring and
firing of workers regardless of union
affiliations.
1t also became evident that Will
liams did not consider himself or the
Recovery Board bound by any prom
ises of Johnson's.
AS to Ford's optimistic statement,
the attitude Of the administration on
cials was that it was fine, but that the
White House itself is not making any
public commitments that prosperity
is just around the corner"
Fine" Says Jones.
While Secretary hlorgenthau ex-
claimed "whoopee" when he heard the
Ford news. and r. F. c. Chairman
Jesse Jones said fine the spirit OF
qualification did not extend to another
remark by the arch-foe Of N. r. A.
There was only silence to answer
Fords statement that all business
would do well to forget the alpha
betical schemes"
Ford's plans to spend $4l5. .00O. 900 in
building 100000 cars or better" in
1888 falls in line with the present
ideas Of N. R. A. experts. They are all
for boosting output and keeping prices
down. But some of them saw the
drive for a 30-hour week as a threat
to low costs.
Ford's statement in Detroit created
something of a stir throughout the
country. Coincidentally, it was re-
ported in the automobile city that he
planned to spend $4,000 900 to expand
the capacity Of his River Rouge plant.
Conservative Wall Street opinion i'm
mediately crystallized that while the
manufacturer had some basis for OPP
ilC 4liA6AiI AldNC
the present situation.
Williams Hopeful.
Chairman Williams, on leaving the
Presidents office with Chrysler and
the General Motors chieftains after a
second conference yesterday afternoon
on the automobile code, appeared more
confident than after the first meeting.
Then, the N. r. A. board chairman
had said:
I'VE haven't got anywhere. We are
always hopeful"
The luncheon recess allowed the
automobile magnates time to COM
municate with other leaders. Sloan
and Chrysler. who also appeared more
optimistic, remained only briefly, with
Williams staying longer.
Those familiar with the automobile
situation regarded these factors as
significant:
Since a To-day notice is required
for N. r A. public hearings and only
one more day remains for the auto
mobile code, labor's desires for hear
ing cannot be obtained unless the
code is given at least temporary
extension.
Election Is Factor.
Industry does not want to reopen
the code to labor's demands for a
30-hour work week. elimination of
the merit clause and reinforcement
Of the wage differential system.
Election day arrives Tuesday. Ex-
tension of the code without some
heed of labor's wants might react
unfavorably to New Deal candidates.
Similarly, command from the White
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