The Omaha guide., 1935-06-15

1t was long rumored that law
yers close to the Administration:
as well as those associated with
industrial and business organiza-
tons; felt the NRA was partly
unconstitutional
1t was likewise believed that
an NRA supreme court fest case
would result in a spit decision:
prabably 5 to 4; as in the railroad
pension and gold seizure cases.
NRA friends were certain that
the liberal justices; Hughes, Car
dozo, Brandies and Stone, would
uphold the law. They were al
most equally certain that the con-
servatives; McReynolds, Butler,
Vandevanter and Sutherland
would vote against it. Their prin-
lcipal worry was what side Justice
Roberts would take.
As a result, when the Supreme
Court, by a unanimous decision,
threw out the NRA In entirety.
the Administration was stagger-
ed.
In the week following the deci-
sion, many wild rumors filled the
air. NRA friends said that the
Supreme Courts act meant the
return of the sweat shop, child
labor, industrial peonage. NRA OPP
ponents said that the way was
now cleared for business to go
ahead full blast. Democratic lead
ers in Congress spoke vaguely of
framing new laws which would at
tain the purpose Of the dead NRA,
and still be constitutional Presi-
dent Roosevelt, in a startling
press interview, intimated that
he might seek a Constitutional
amendment giving Congress the
powers the Supreme Court has
said it does not now possess.
Now that sufficient time has pas
ed TO review events calmly, it
seems safe to say that no new
lNRA law viii be attempted; most
Administration lawyers have adj
mitted that the decision leaves
no room for further effort along
that line; and that the most ex-
IRENE NRA friends and enemies
were wrong. Employers are not
cutting wages and increasing
hours, and the fact that the NRA
no longer exists has not given rise
to a major boom in business over
night.
So far as the public was con
cerned, the NRA did three things:
1t artifically raised wages, short
ened the working week and in
creased prices. Industry in gen
eral was, and still is, IN favor Of
fair hours and wages. Since the
decision, the heads of literally
hundreds of major corporations
have announced that they will
not change existing wage and
working conditions, and in only
a handful of relatively unimport-
ant cases have concerns gone back
to pre-NRA standards.
Prices are another matter. Once
the codes were thrown out, indus
try was at liberty to operate on
a competitive basis. First break
came in cigarette prices, which,
held by the code to minimum OF
IL cents, dropped at once to 10
and IL cents. And in many lines
of business, jobbers cancelled fu-
ture orders, believing that they
would soon be able to buy the
same products for much less
money.
Responsible industr1alist were
largely opposed to NRA price-flx-
ing; but they also Know the disas-
trous possibilities Of uncontrolled
price-cutting. AS a result, varl-
Gus groups which were under
codes have announced that they
plan to voluntarily continue them,
even though it is no longer legal
" obligatory. This is pleasing to
the Administration, which still be-
lieves that Stabilized price levels
are essential to the recovery pro-
gram.
Thus. the upshot Of the Su-
preme Courts decision is likely
to result in the best phases of the
NRA idea being continued volun-
tarily: while lis worst phases,
eompulsion, price boosting and
overriding Of constitutional rights
will be dropped. It is obvious
that a lessening Of bureaucratic
control over business, which NRA
UNNECESSARILY increased, will
stimulate private initiative 1t is
equally obvious that the psyche
logical effect Of the decision;
which said. by intimation:
Estates rights still exist, and the
Federal power does not include
dictatorship over private endeav-
ors not within interstate COM
will be a spur to indus