Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-04-19

greatly increased the power of indus
trial groups. It found kinder words
however. for N. r. AS efforts to
facilitate competition" These, it said
ARE its most creditable additions to
the economic structure"
TT is our view" the document said
that the N. r. A. has had the effect
Of restricting production below the
levels it would otherwise have at
tanned"
The rise of prices" it said, pre-
vented the increase in the total real
purchasing power of labor expected to
accrue from wage raising.
Some groups of workers had their
incomes raised more than living costs,
while others lost ground; some employ
ers were able to raise their prices more
than their costs, others less; but on
the whole, price and wage rate levels
both moved to considerably higher
ground without material change in
their relative positions.
1.-THE codes, moreover, made little
change in the distribution of the
aggregate income from production be-
tween employers and employees, con-
sidered collectively.
mot only did the program fail to
work out as planned, but the plan
itself was, in our judgment, mistake"
N. r. A. put the cart before the
horse" by raising costs and prices, the
findings said, and conditions were not
right for a stable expansion of wages
at the expense of profits. If this had
occurred, it said, sit would probably
have frozen up more purchasing power
than it released"
1.-THE conclusion indicated by this
resume" the report said, sis that the
N. r. A. on the whole retarded recov-
cry" The group did not attempt to
cept that the retardation was Sub
stantial."
Meanwhile, after hearing johnson
term N. r. A. a middle of the road
course" between economic failure and
communism or fascism, Chairman
Harrison of the Senate Finance Com
mittee closed six weeks of hearings
on extension of NJ R. A. and called his
committee to meet in closed session
today to start framing a new law.
It was after he finished reading an
S8-page written statement, that john
son appealed for N. r. A. as middle
Of the road course"
my belief is" he said, that we
must take our capitalistic system in
hand. The median line is N. r. A. We
must not 60 back to what has failed.
We must not 60 forward to commu-
nism or fascism."
Industrial Unions.
johnson said the Government
should encourage but not compel YER
tical industrial unions in the prin-
cipal industries, with complete intra-
industry tribunals for settlement of
disputes, their decision to be final,
and both strikes and lockouts to be
barred.
Senator King, Democrat, of Utah,
asked how lockouts and strikes could
be prevented.
"You can't do it," johnson replied.
Darling swiftly from enc subject to
another, johnson put in this testi-
mony from time to time:
That from 40 to go per cent of what
the consumer pays for canned toma-
toes represents the cost of the can.
That the coal, oil, textile and lum-
Der industries are examples Of those
requiring fair trade practices in
codes.
That meat packers and cigarette
manufacturers are examples of big
industries opposing code rule.
That the total amount paid to to:
bacco growers in the nine major pro-
ducing States in 1882 did not equal
the net profits Of the big four to-
bacco manufacturers.