Evening star., 1934-04-08
Legal Actions
to Begin in
10 Days.
RULES BIDDERS
MUST COMPLY
McCarl Approves
Executive Order
on Certificates.

A general onslaught of court action
against N. R. A. code "chiselers" was
ordered yesterday by Hugh S. Johnson
THE time has come" said NJ R. A s
administrator in letters to all code
authorities and field representatives
when uncertainty as to enforcement
by legal proceedings must end.
1--WE must now proceed on the basis
that one who is violating his code
and who is not ready and anxious to
comply and make restitution when in
formed of his noncompliance must
be brought swiftly and surely before
the enforcement agencies of Govern
ment."
Prosecutors to Get Cases.
To suit action to the word, johnson
ordered that:
Ten days hence State COM
pliance directors will begin hand
ing all clear-cut violation cases di-
rectly to their Federal district at
torneys, instead of first asking
advice in Washington
Within the 10 days State di-
rectors. code authorities and local
compliance boards will send all
good cases in their files to the
newly created N. r. A. litigation
division here, SO the best may be
returned Immediately to the district
attorneys for action.
N. R. A. officials said frankly the
new policy was based on success in
court with test cases just completed,
including the Supreme Courts ruling
for the Government in the New York
State milk law case and convictions
won by N. r. A.
All hands were warned not to file
weak cases. the objective being to
obtain prompt convictions.
The new johnson policy was an
nounced shortly after the National
Emergency Council had said the con-
sumner activities of both N. R. A. and
agriculture would be consolidated
under the council in q division that
would Immediately create liz con-
sumer councils throughout the coun-
try on an experimental basis. Mrs.
Mary Hartman Rumsey will direct
the job.
Code Certificates Upheld.
The chief duty of the local councils
will be to analyZe the effect Of price
changes on consumers and the reac-
ton on business
Another energizing development OF
the day was a ruling by Controller
General McCarl upholding a presi-
dental order requiring all sellers and
manufacturers bidding for Govern
ment contracts to file certificates of
compliance with their respective codes
before their offers can be considered
The decision effectively shuts Out
from Government business and all
State and local business partially
financed by the United States all
firms which attempt to disregard
codes, or which, like the Ford Motor
Co., comply but refuse to file af-
firmative commitment to recognize
the code as binding. Since the manu-
facturer must affirm as we'll as the
seller, Ford retailers would not be
eligible to obtain contracts unless the
firm changes its policy.
A ruling on this issue by McCarl
had been awaited with interest ever
since the PRONUNCIATION of President
RooSevelt'S order on March IA, to
tighten up the recovery act, because.
in the original controversy between
Henry Ford and the N. r. A. late
last year the Controller General had
disallowed the contention OF Gen.
johnson that code signing was nee
essary prerequisite to obtaining Gov
ernment business. McCarl at that
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