The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-20
BY COILS STOCKING

BY COILS STOCKING
AS the NRA enters its second
phase the test of the administra-
ton is that of shaping an inchoate
mass of legislation and rulings into
more definite and permanent gov
ernmental policy. Various features
of the present program must be
co-ordinated, contradictions elimi-
mated and unworkable principles
discarded.
Codes must be revised But be-
fore effective revision can be ac-
complished the matter of general
policy must be determined. Such
definition of policy hinges pri-
marily upon the Qualification of the
three most disputed provisions Of
the present laws. Clause IA. con-
corning the right of labor to organ
ize, must be interpreted definitely
and finally. The question of price
fixing and the limitation of output
must be settled.
While Clause IA quite clearly
gives the laborers the right to be
represented by representatives of
their own choosing, it does not spe-
city just what is to be done with
minority groups.
Roosevelt Is Criticised
President Roosevelt in connection
with the automobile dispute in Feb
ruary declared that the law permit
tod ;oJopoodeot ra.rocaptotiOp ~
any number of groups within any
company or industry. The President
was criticised for his stand on the
ground that it robbed the law of its
effectiveness and spirit.
In September the national labor
relations board very definitely re-
} versed the Presidents earlier posi-
= ton and in the Houde Engineering
Corporation case held that the ma
jority had the right to negotiate for
all laborerS.
With regard to price fixing, 70 per
\ cent of the codes approved include
\ some type of minimum price fixing
} provisions. In general such provi-
sions have been opposed by the Con-
sumers' Advisory Board on the
:, ground that minimum price fixing
! tends to establish monopolistic con-
ditionS to the detriment of the con-
sumner
Heretofore our experience with
price fixing has been confined pri-
marily to the regulation of public
e utility prices. Such price fixing has
:, been based upon an entirely differ
y ent principle from that involved in
l. the codes. In connection with pub
l. lie utility regulations emphasis has
E" been placed upon maximum and not
)r minimum prices.
lie Discuss Price Fixing
The minimum price fixing of the
II codes, instead of protecting the in
" terest of all concerned, has tended
IL to protect the inefficient producers
against the comparatively lower
- prices of the efficient producer. On
= this and similar grounds the price
: fixing provisions have been de-
is nounced by some of the code ad-
ministrators and have been declared
j. to be uncomfortable. Where they
y have been enforced the effects have
4, been to freeze industry at fractional
n capacity, to further unemployment,
" and to tax the consumer in the form
er of higher prices.
:" With regard to limitation of out
It put, Is per cent Of the codes fix
q limit to the number of hours that
q machines may be operated, and
: few codes go to the extreme Of limit
. ing the installation of new machin-
e cry. The limitation of machine
D. hours is a logical corollary Of price
fixing provisions and has worked out
with the same or similar undesirable
results.
The thoroughgoing analysis made
of Clause IA and the majority rule
decision handed down by the ma
tional labor relations board have
been greeted with widespread ac-
claim that can not be ignored. Earlier
this year it was announced that no
, more minimum price provisions
would be included in the codes. The
recent rejection of the minimum
service charge amendment of the
banking code was in conformity
y with this earlier announcement.
J. Opposition Is Growing
: The trend is definitely away from
=, detailed price fixing, and such pro-
y visions are bound to be removed
d from some Of the codes. There is
- growing opposition TO the limita-
= ton Of machine hours. In cases
" where such provisions are retained
y they are almost certain to be re-
~ vised to safeguard the respective IN
terests of laborers and consumers.
u The above tendencies, if they con-
n tinue will very significantly change
I. the nature of the NRA Many Of
- the detailed regulations which exist
today are contrary to the basic
principles Of private enterprise Such
= regulations for some industries will
no doubt be abandoned in favor Of
'. the protection which is afforded by
competition operating through the
= market.
In other numerous cases where
industry has become so organized
"a that competition is ineffective in
q harmonizing divergent interests, di-
rect governmental regulation is in
). evitable. This regulation seems des-
u tined to be formulated in accordance
with some fitting refinement Of the
a principles now employed in our pub
3 lie utilities regulation.
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