Evening star., 1934-06-08
n. R. A. DRAWSUP
. SINGLE CODE FOR
SMALL INDUSTRY
Rigid Price-Fixing Policy Is
Observation-Disclosures
Laws Supported.
CURB STILL TO HOLD
ON UNFAIR PRACTICES
Outstanding Provisions to Be Re.
tanned in New Pact for
"Little Fellows"

Alttle FELLOWS.
Copyright. 1894. by the Associated Press.
N. r. A. will announce soon one big
"ready-made' code for several hun
dred miscellaneous industries whose
pacts have not been completed.
This basic code will be almost an
simple as the Presidents re-employ-
ment agreement with which the Blue
Eagle started its flight a year ago. It
aims to give the minor industries reg
ulations which will be easily enforced
yet reach the N. r. AS chief objec-
tives These are:
Shortened hours to make more
jobs; wages not below living levels;
recognition Of labors right to organ
ize and bargain; prohibition of COM
mercial dishonesty and the obvious
forms of unfair trade practice.
Acceptance Voluntary.
The small, secondary industries will
be given opportunity to subscribe VOL
unfairly. If they want more elaborate
trade practice regulation, they will be
required to present the signed assents
OF IS per cent Of their firms.
Determined to simplify N r. As
work. officials have pushed toward
completion plan to consolidate
scores OF codes already approved In
the end. there will be not more than
800 codes in place Of $50 already ap-
proved
The ready made" or "clean-un"
code plan arose from the discovery
tnat codifying the small industries
mas been absorbing a disproportionate
amount OF time and money. which
should be devoted to major problems
! Inc more codes the greater the ad-
ministrative load. For instance. there
are nine separate pacts for button
makers.
Few Big Codes Left.
Under the cleanup" code there
VIII be no more public hearings. no
more protracted negotiations. In addi.
tion to $50 codes approved, N. r. A.
mas nearly 500 in negotiation. Some
cover fairly large industries. but In
almost every case these are being
rushed to completion. II they are
| not put through readily, and unless
( special circumstances call for indi-
Vldual treatment. the administration
will urge these industries to take the
general code
The base code will permit price re-
porting through a central independent
agency, along the lines laid down in
N. R. AS price policy announcement
OF yesterday. If firm files a figure
which appears entirely out of line
| with costs, it may be called upon to
/ justify it. Otherwise there will be no
restrictions.
Curbs Throat Cutting.
The idea is to block cut-throat price
| reductions and yet leave competition
free, while little chance for big COM
panies to press little ones into a uni
form price level
The 40-hour week will continue as
the standard. Though N. R. A. would
like to bring the figures down, it has
not succeeded in swinging the larger
industries into line
Wages will be either at the s13-a-
week factory minimum of N. r. AS.
first code, covering textiles, or close
| to 1t. The Southern 81 a week differ
entail is expected to be continued.
The force of the antitrust laws
against covert, price-maintaining COM
| binations was made unquestioned by
the new price policy announcement
which reduced all code restrictions
on prices to the simplest terms. on a
base which would make arrangements
to keep prices up dificult If not i'm
possible.
Darrow Board Is Factor.
NJ R. A. men said they believed the
new policy represented the first agree
ment of either Government or any
business agency on what constituted
desirable price competition.
The declaration was product Of
months of economic study, which was
affected indirectly by activities of
groups such as the Darrow Board. It
responded partly to earlier public
criticism and observation of oficials
/ on result of the experimental codes.
The core of the new price policy is:
/. Wilfully destructive price cut
| ting Is forbidden and any prices
| which appear unreasonably low may
! be Investigated and correction re-
quired If they are found to be unfair.
2. Fixing Of even a minimum price
will be allowed only in cases Of
demonstrable emergency, threatening
destruction of business firms, employ
ment or wage levels. Then only
N. r. A. shall have the right to de-
termine what is the minimum price to
be fixed, and it Shall be the lowest
reasonable cost"-not q profit-cover-
ing figure for the majority of enter
prises.
Coercion Is Curbed.
3. Open price posting - which
means letting all competitors know
every other competitors price-will be
allowed only on these terms: That
the prices be reported to a neutral,
confidential agency; they shall become
effective Immediately without wait
ing period for powerful competitors to
argue the original filer into Lille with
their own figures; prices may not be
revised upward for 48 hours, but they
may be cut right away and 50 re-
ported.
A provision which virtually revived
the full force of the antitrust laws
| for violators said:
mo member of the industry shall en-
ter into any agreement, understanding
combination or conspiracy to Ak or
maintain price terms, nor cause Of
attempt to cause any member Of the
industry to change his price terms by
the use of intimidation, coercion or
any other influence inconsistent with
| the maintenance of the free and open
LII. Il. a