Evening star., 1934-07-14
PEASLEE TO HEAD
NEW MIRA. BOARD
New York Lawyer Expected
TO Direct Body Replacing
Darrow Group.
NJ ths Aaaoelalsd Preas.

ny the Associated Press.
Creation by Hugh s. johnson Of q
board Of review within N. r. A. to
perform permanently dunctons orisi-
nally assigned 10 the Darrow Review
Board was reported as imminent to-
day at Blue Eagle headquarters.
Amos ]. PcaSlee. a New York lawyer
who has been attached for some weeks
to N. r. A.. s understood to have been
picked as chairman. He has devoted
his time to compliance work thus far.
The new board. as aides understand
Johnson's plans, will hear complaints
OF small businesses against N r. A.
codes, especially those charging mo-
nopoly and suppression Of the little
enterprise. 1t also win hear appeals
from administrative rulings Of other
N. r. A. divisions.
VIII Report to Johnson.
Just how far the boards authority
in revising previous administration
actions will extend was not known
Immediately. 1t was considered like
ly the board. after hearing cases.
would report directly TO Johnson.
The board will have other members
in addition 20 Peaslee.
Peaslee is 81 years old He was
a major In the Army during the World
War, attached to Gen. Pershing's head
quarters and served for q time as
Judge advocate Of the general court
martial in France. He Is a Republic
an and a Quaker.
Ruling Excludes Public.
Meanwhile IL became known an
N. r. A. legal ruling threatens
to restrict public participation in price
slashes resulting from President
Roosevelt's order that bidders on Gov
ernment contracts may 90 is per cent
below their listed Blue Eagle prices.
The opinion, delivered to the steel
industry among others. says In effect
that a bidder whose code price Is 81
may sell to Government agencies
Federal, State and local-for IS cents
and still maintain his 81 figure TO the
general public.
Mr.. Roosevelt's order said II bids
we're below code levels, the new prices
should be fled Immediately with the
code authority or other appropriate
agency with which he Is required to
file prices"
Would Become Code Price.
The White House further explained
that posting Of reduced prices would
give the public the advantages Of the
reductions obtained by the Govern
ment. The Interpretation was that
the bid price on Government con-
tracts would become the new code
price private buyers.
But the ruling Of N. r. AS legal
division, though not concurred m by
all N. r. A. officials, is that the bid
price need be fled ''for information
only and does not necessarily become
the price offered the public.
Oflcials of the legal division said
yesterday they were aware Of the
White House Interpretation, but In
sisted that the code must legally be
interpreted to the contrary.
Among N. r.. A. officials disagreeing
with the legal ruling was George s.
Brady, one Of Hugh 8. Johnsona pol
icy advisers, who was just named to
the committee for cleaning UP all code
making.
In a penciled memorandum Brady
said the Presidents order definitely
assumes the new price as the filed
price,"
One of the first industries to seek
exemption from the Is per cent toll
erance order was steel.
Believe Public win Benefit.
The new legal ruling was communi-
Gated TO the Iron & Steel Institute
by r. w. Shannon, assistant deputy
administrator.
He said, in part:
1T is the opinion Of our legal divi-
sion that the filing with the code au-
thority +" Z" by bidder OF q bid price
which he has quoted In accordance
with executive order of June 20 and
which Is below his filed price is for
information only and such filing Of a
bid price does not effect q change in
the bidders base prices then on file
. any change in such filed base
prices to be made In accordance with
the provisions Of the CODE"
Some N. r. A. officials believed that.
despite the legal ruling. any price cuts
obtained by the Government eventually
would reach the consumer. They said
most industries probably would re-
spond to the pressure of large private
buyers for the same terms given the
Government on large orders.
Officials foresaw q possible test of
the tangled price situation In August,
when the Navy opens bids on "a
vessels. Half Of these will be built In
Government shipyards and half In
private shipyards.
1t was thought likely that steel
bidders, with Is per cent tolerance
In bidding to supply metal for the
Navy yard construction, would be
under pressure to give the same terms
to private shipyards.