Evening star., 1934-05-27
BY OWEN L. SCOTT.

Inc real Qlmculty OF q partially
planned economy such as that rep
resented by the new deal, is coming
ever more clearly into view. It is
recognized by the White House. is
causing concern to some Senators and
is very definite worry to the brain
trust, which had pinned much Of its
hope on a reformed human nature.
Clarence Darrow recognized the
problem in his study of the N. r. A.
Harry Hopkins, administrator OF
emergency relief, ran against 1t in
the Civil Works Administration.
Henry Wallace is finding his task
under the A. A. A. complicated by
the same problem, while John Fahey.
head of the Home Owners Loan Cor
poration, has been deeply perturbed
by it.
The often-stated problem simply is
this: With vast new powers assumed
in the name of the Federal Govern
ment, and vast sums Of money au-
thorized for spending, in whose in
terest are those powers to be welded
to be spent? These posers are proving
very real right now.
Take the case Of the N. r. A.
Under the act creating that organiza-
ton the restrictions of the antitrust
laws were suspended. New rules were
to be formulated for the business
game and those rules were to be en-
forceable in court. Suddenly there
has come loud outcry against the
rules made In many industries.
The charge is entered that. with
the antitrust laws out of the way,
certain groups took advantage of the
opportunity to write their own ticket.
They framed a set of rules-so the
charge goes-that benefited them
selves at the expense of competitors
and of the general public.
Under those rules q business man
might be told how much he must
charge for the things he has to sell,
or just how he must do his selling.
He could be told whether or not he
could add a new machine If needed,
or when he would have to close down
his plant in order to help keep prices
up in the whole industry. Somebody
in Washington might tell him how
much he must contribute to the sup
port of code organization that he
did not favor. And somebody in
Washington also could WELD the
power that would take from him the
Blue Eagle symbol of cooperation
with the N. r. A.
The rules and regulations of codes
do not simply concern hours of work
and rates of pay for workmen. They
involve. in many instances, all Of the
intricate phases Of business. And
who is to enforce the rules? Is it
an impartial tribunal, backed by
tried and tested policies, and with
the public interest In view? Not at
all. Gen. johnson Is convinced that
industry must learn to govern itself
and that Government has been turned
over largely to the men who make
the codes.
These men might be called upon to
settle issues raised by q competitor
who opposed the code. Or they might
have to decide issues involving basic
differences between big operators and
the small business men.
+ \ X
Thus under the N. r. A., business,
or that part of business which runs
the trade associations, has often been
allowed to make its own rules and
largely to enforce those rules with
minimum of interference or super
vision by the Government. Usually
there Is one representative OF the
public on the code authority. Some
question is being raised, however. as
to whether these public representa-
tives always have the background and
the viewpoint that would enable them
to watch out for the interests OF the
millions of consumers Of the country.
The troubles Of N. r. A. today
grow from the charge that certain
business interests have taken over the
new powers granted by the Federal
Government and are utilizing those
powers for their own benefit, and fire.
ouently at the expense Of others. That
is one phase Of the problem growing
from the extension OF governmental
activity. It Is duplicated In mea-
sure by the troubles Of the agricultural
adjustment act.
But there Is another phase In which
officials see even more political dyna-
mite. That is In the spending Of the
public money and in the loaning OF
public money on huge scale.
Within q very few weeks the Fed
eral Reserve banks and the Recon-
struction Finance Corporation are to
have over $400, 100000 available for
direct lending to business men. The
demand for loans Is expected to be
many times that amount. As re-
suit, the question Is raised: Just who
Is to get the money?
Senator Black, Democrat, Of Ala.
bama. was fearful that 1t would 60 to
those businessmen with the strongest
political backing rather than to those
most needing the money. 30 he Of.
fered IN amendment that finally was