Evening star., 1934-06-28

unrestrained language as promoting
monopolistic practices and the oppres-
sion Of small enterprises, in the face
Of the fact that small mills have in
creased in number by approximately
5000. The difficulties of this indus
try, the reasons for code provisions
which are attacked and the source Of
criticisms repeated by the board are
analyZed carefully and judicially in
the attached report Of the deputy ad-
ministrator.
For the benefit of those concerned
with the detailed reports of the board,
brief commentaries on these reports
are attached hereto, in which admin
istrative officials of the N. r. A. pre-
sent the facts and issues involved on
the basis of an intimate knowledge
of the problems. which receive super
fetal consideration on the basis of
limited and frequently wholly mac
curate information, relied upon by the
Review Board.
Truth in "Ads" Sought.
The present general commentary
may well conclude with a reference
to the most significant example Of the
boards fevered criticisms, which oc-
ours in its report upon the retail CODE
AS originally drafted, the code pro-
hibited a retailer from advertising a
policy or practice of iInderselling COM
petitors. The administrator changed
this to read "inacurately advertising. "
AS revised. the code provisions pro-
hibited advertising a lie-but per-
mitted advertising the truth.
This change, according to the Re-
view Board, "thumps all life and va
lidity out of the original intention
and leaves it limp and meaningless. "
The administrator is berated as a
military commander" exercising an
irresponsible dictatorship" - because
he did not prohibit truthful advertis-
ing in support of competition. On
top of this the board supports min
imum price regulations for the retail
trade; so that. according to the board,
retailer should not be permitted 10
sell below a minimum price, nor to
dQNcIJlSc u Illdl Ills pl lCCS
are consistently lower than his COM
petitors.
The board thus abandons its former
contention that fair competition" is
an Illusion and that price control is
an abomination. The board not only
denounces "cut-throat competition
and ruinous price-cutting" in regular
N r. A. style, but goes on to demand
that retailers be prevented from ad-
vertising. even truthfully that they
undersell competitors. Such demand
for price control and restraints upon
competition goes)far beyond any pro-
gram ever contemplated by N. r. A.
Retraction Seen.
Evidently the board has recanted
the declaration in its first report that ::
"A return to the antitrust laws for
the purpose of restoring competition
we believe to be one of the great needs
of the times" 1t has now learned
that cut-throat competition is an evil;
that monopolies thrive under unre-
strained competition, and that meas
ures of price control frequently afford
the only practical protection of small
enterprises.
The board, having denounced most
vehemently various limited measures
Of price control as written in some
codes, now. with charming inconsist-
ency. demands more and tighter price
control for the retail trades and the
petroleum industry
Since the Review Board now recog-
niZes the evils of 'cut-throat competi-
ton and ruinouS price-cutting" in
some businesses, We may assume that
in time the board will come to recog-
nize the necessity of protecting decent
hours and wages in all trades and in
dustries by preventing unfair competi-
ton and destructive price-cutting.
As the board grows in wisdom. its
reports - with political arguments,
rhetorical phrases and passionate
verbiage deleted-should prove more
helpful and less obstructive to the re-
covery program.