The Washington times., 1935-06-07

changing the Constitution. So he
now seems to be reducing NRA to
a skeleton organization.
But the bOneS-the skeleton
are there. And where there
are bones, there may be flesh.
For the present." washington
dispatches indicate that Mr.. Roose.
welt is content with mere stop
gap" and a Goddess skeleton. It
is reported, however, that this is
"for the present." and that moves
to "modernize" may come later:
Some observers suggest that il
strikes and severe price cutting
were to develop, the President
would say II told you So" and
would make the revival of MIRA
an issue next year.
Certainly the MIRA name is be-
ing preserved. This keeps alive
the idea of the thing, and regi-
mentation of business may arise
again as a political issue. AS
usual, therefore, we are kept in
uncertainty. We don't know
whether the skeleton in the closet
Is kept to save the Adminlstra-
tons face, or to be brought out
later.
If the President had desired,
he could have done much more
to save the pieces" and keep
flesh on the skeleton. For ex-
ample, he could have developed
the Federal Trade Commission
idea and worked along the line
of prohibiting unfair competition
and determinations. Or he could
have acted to reduce the appli-
cation of the antitrust laws in
cases of voluntary codes con
forming to certain MIRA ideas.
Possibly he could have ar
ranged for agreements among
the several States. Tariff pro.
lection could have been used as
club.
Some such measures he may
yet decide to try. But as yet:
he chooses to convey the idea
that NRA is dead except as a
"skeleton" and stop gap"
All this is especially confusing,
since the truth is that NRA had
clearly failed, both as a recovery
measure and as an agency of
social planning" through regi'
mentation under Government con
troll.
It failed because:
/. It raised costs.
2. It's attempt at RECOMMENDATION,
broke down on account of (al
differences among sections of the
country, and CD differences
among the members of each in
dustry-differenceS in size, nature
of business, etc.
3. It attempted to encourage a
particular kind of organized labor.
4. Its code provisions were COM
plicated and overlapping.
5. Enforcement broke down.
The NRA was being used for
two chief purposes: to maintain
price-fixing agreements or private
business monopolies, and to en-.
courage labor organization of the
A. F. of L. type. These two prob
lens remain, namely monopoly in
business and monopoly in labor.
But If the residents latest
announcement implies that
there will be no important anti
trust procedure, and If he is to
back such measures as the
Wagner bill and the 3O-hOur
bill, a great deal of the meat
of NRA will continue alivc. The
copper and steel "codes," for
example, will then remain sub
stantially unchanged, and If
they are not NRA, what are
they?
So the question seems to be this:
If existing voluntary" codes are
to be protected, and if organized
labor is to be given what it wants,
the NRA will live in spirit. Mean
while, the NRA name is to be kept
alive and a skeleton organization
kept in the closet. If business
troubles grow, that skeleton will
be brought out, and the constitu'
tional issue will be raised again.
But if business RECEIVERS, it will
remain "dodo."