Evening star., 1934-11-11
AUTO CODE POINTS
YET UNSETTLED
Labor for New Hearings
Despite Order of N. R. A.
Rules Extension.
Rv the Associated Press

BY the Associated Press.
DETROIT. November 10-Although
further extension Of the N R. A. code
for the automobile industry, ordered
a week ago by President Roosevelt,
had not been entirely unexpected, the
opinion in trade and labor circles
generally had been that new hearings
on points of disagreement would pre-
cede such action.
While there are certain phases of
the scode upon which the producers
desire further discussion, the demand
for hearings looking to possible re-
vision has come mainly from the rep
resentatives of organized labor in the
industry.
The recent extension is the second
since the original term of the code
expired, and will last until the first
week of February, a time when the
industry should be at its peak point
of output on next years cars. The
matter Of peaks and valleys in pro-
duction, incidentally, seem scheduled
for serious study during the next few
months.
Both Sides Anxious.
This is one of the things at the
moment giving both sides of the code
most concern. The labor contention,
expressed by F. J. Dillon. general or
ganizer of American Federation of
Labor in the automobile industry, is
that the average wage of workers in
motor ear plants IS $500 year, re-
sulting from high-level factory &C
tivity at one season of the year and
complete suspension at others.
Staggered introduction of new mod
els has been suggested as one step in
the direction of leveling of produc-
ton, but against this economists point
to the highly competitive nature of
the automotive industry as an obstacle
difficult to overcome.
Competition is most pronounced in
the lowest price class, which produces
the greatest number of cars and en-
ploys the greatest number of workers.
Further complicating the problem is
the fact that although the volume OF
distribution has increased in virtually
every field of the industry during the
last year, the margin of profit as in
dicated in the formal reports of the
various producers has been smaller.
The problem of seasonal production
peaks has been a source of concern
to employer and employe for many
years.
Slack Period Transferred.
Producers believed they had hit on
a partial solution of the difficulty three
years ago when they decided to dis
continue midsummer new model
work and concentrate this activity
toward the year end. While this
furnished q heavier volume OF en-
ployment during the Winter months
it merely transferred the slack period
in factory activity from one season of
the year to another.
Sales directors generally agreed,
however, that the policy had a bene-
fetal effect in stimulating retail dis
tribution. The earlier policy of
bringing out new types in mid-Sum-
mer or early Fall, they explain, had
a tendency to curtail sales in the
early Summer months. Inasmuch as
the policy was a development of the
depression, however, sales heads of
the various factories admit they are
not in position to say what effect it
might have in years of normal motor
car buying.
In automotive circles generally it
Is believed the inquiry ordered by
President Roosevelt into the effect
Of high and low levels Of production
on employment will be well under
way If not ready for conclusions by
the time the secotA code-extension
peri0d endA