Evening star., 1934-06-30
CODE PRICE RULES |
CUT ON i. S. B|DS|
President Orders Step to
Halt Proposals of Iden-
tiCaI Rates.

BY the Associated Press.
A blow aimed by President Roosevelt
at the phenomenon OF identical bids
for Government orders is expected to
have important effects on price fixing
under the N r. A.
Many interpreted it as a step away
from rigid price e-flxing. Hugh S.
johnson, however. was empowered TO
step in to prevent cut throat competi-
ton.
The President. seeking keener rivalry
for Government contracts, issued an
executive order yesterday permitting
bidders to quote prices as much as
Is per cent below figures listed under
Blue Eagle codes.
The lower prices then would have to
be filed with code authorities, SO as TO
become available to all citizens.
II Johnson feels the price cutting is
becoming destructive. he can reduce
the Is per cent margin of competition
to as low as S per cent. The margin
applies to any Government contracts
Federal, State or municipal.
Second Action in Day.
Critics OF N. R. As price fixing
policies have made much OF identical
bids submitted by Blue Eagle firms
1t was the second important relaxs-
ton yesterday in N. r. AS price
policies. Another order dropped price
fixing and other fair practice proV-
sions fol the 55 service industries.
These trades, employing millions, were
offered blanket agreements concern
ing wages and hours and the way was
left open for local codes of fair prac-
tlce.
The presidential order and supple
mentary ruling by johnson for the
new blanket agreements evidenced an
intention TO speed to conclusion the
huge block of proposed service codes
which have been clogging N. r. A.
machinery for months.
Order Covers SIS Services.
Services covered by the new order
include beauty shops apartment
houses and automobile lsundries. The
Presidents order covers the 55 un-
codified services into the policy an
nounced toward the codifled services
in the order of May 26, which
suspended all fair practice require
ments and lett only labor standards.
That order embraced the motor We
hiCle storage and parking, bowling
and billiard. barber shops. cleaning
and dyeing shoe rebuilding. advertis-
ing display. advertising distributing
and laundry industries.
The executive order said in part:
Il Franklin D. Roosevelt. President
OF the United States do hereby offer
to enter into an agreement with the
members of such service trades not
heretofore codified as shall be here
after designated by the adminlstra-
ton OF industrial recovery, where
under any such member displaying
appropriate N. r. A. insignia shall
evidence his agreement TO comply
with the standards OF labor approved
by the administrator
Mr.. Roosevelts order on the Gov
ernment contract bid said:
Amy person submitting a bid to
any agency or instrumentality of the
United States. or any State. munich
pality or other public authority. to
furnish goods or services at prices
which. in accordance with the re-
quirements of one or more approved
codes of tair competition, must have
been filed. prior 10 their quotation,
with the code authority, or other des-
| ignated agency, shall be held to have
complied adequately with the re-
requirements of such code for fair
competition: (Al II said bidder shall
quote price OF prices not more than
IS per cent below his price or prices
filed in accordance with the require
ments OF such code or codes: and.
tBJ if, after the bids are opened. each
bidder quoting a price or prices be-
low his filed price or prices shall i'm
mediately file a copy OF his bid with
the code authority or other appro-
pirate agency with which he is re-
ouired to file prices.
If upon complaint made to the ad-
ministrator for industrial recovery, he
shall find. after due investigation,
that the tolerance OF Is per cent pro-
vided in this order is resulting IN de-
structive price cutting in particular
trade or industry, he is hereby author
lied to issue an administrative order
reducing said tolerance of 3 per cent
for such trade or industry TO the ex-
tent he shall find necessary to pre-
vent such destructive price cutting,
but in no event to tolerance OF less
than 5 per cent"
johnson to Make Study.
Administrator Johnson was ordered
the effects of this order upon the
maintenance of standards OF fair COM
petition in sales to public and private
customers and to report to the PreSi-
dent within six months.
The new set of orders were Of
series of N. r. A. developments pre-
ceding Mr.. Roosevelt's vacation de-
parture, which included:
A finding by Leon Henderson. N. r.
A. economic adviser. that under eX-
isting conditions there is no factual
or statistical basis for any general in
crease in cotton textile code wage
rates.
JohnSon's statement that the closed
Hartman ,TennD Hosiery Mills will
continue without a Blue Eagle de-
spite Attorney General Cummings
decision that evidences of N. r. A.
violations were insufficient for court
prosecution.
Johnson's statement that N r. A.
already has begun an investigation
of business practices of the alumni
mum industry which is to be COM
pleted during the 9O-day code trial
period
N. r. AS decision that with the
State and Labor Departments oppos-
ing the proposed master shipping code,
this industry will be codified func-
tionally in small codes.