The Bismarck tribune., 1935-04-24

COll0S00 0e00l0&
Washington, April M-NRA knows how to be honest
with itself-but not with the rest Of US.
Borah always said NA has had the effect Of fos-
tering monopoies monopostic practices and monopo-
listic prices.
dence Is to be found in NAs files. But investigat-
ing senator's considering legislation. will have to dig
= lot deeper before they get It. - .-
have frozen high prices solid Even federal state and
city governments despite special exempting order by
payers lot Of money can't get discounts on their large
scale purchases Of many types OF supplies
You can read about it in the NaA research and
contracts quote prices than Is per cent below
those allowable to private purchasers under their codes
III you can get copy! Very few are a''l'ole9
FIRE IS SUPPRESSED
But you'd never imagine the true state Of affairs II
you merely read the official report the study pre-
pared and addressed to the president after Senator King
had asked for It.
II isn't clear lust who wrote II, but rs signed
by Acting Chairman Donald Richberg of NRA
and seems to have been prepared with the domi-
mating idea Of suppressing the strong language
and sensational conclusions In Research and
Planning Director Leon Henderson's summary
Executive Order s7e7 was an answer to great howl
claimed taxpayers being soaked by flood Of tie
bids identical bds) public contracts.
It was assumed lower bids within the IS per cent
margin would be submitted by supply industries and that
thered be . greater variance Of bids.
But look at few excerpts from Hendersons sum
=. the preponderance Of obtsinable evi-
dence indicates that Executive Order 6767 WAS
only sporsdically effective in increasing competi-
tive auction bidding upon contracts TO be let BY
public purchasing ssents.
MANY BIDS INCREASED
Out Of total Of IS sets Of contracts studied q total
including practically oil purchases Of the procurement
division Of the treasury and the bureau Of supplies and
accounts Of the navy Il showed an increase in the
smount Of tiebiddine after the order was issued 10
showed change, while 81 showed decline.
'The percentage Of tie-bids increased notably in
ucts and building materials It remained about the
In such industries automotive. paint and varnish
chemical and glass containers and decreased subsan-
TALLY In such industries as asbestos scientific apparatus
q. practically no evidence was found that the
der secured to the public exchequers even fraction Of
the potential savings which It hoped is per cent
discount upon government purchases would achieve Al
most universally bidders upon public contracts failed to
offer Z discount
MONOPOLY UNBROKEN
Finally, the order has not served to loosen at Ill
the grip Of strongly organized industries the prices
and upon the consumers Of their products. So far
the evidence obtainabe for this study Is concerned
monopostic competition has continued and has even
been stabilized In many respects by the codes.
"The evidence that Is here to be had shows
overwhelmingly that these monopolistic Or quasi
m0n0p0liSttc groups nave carteISe0 unoer the
codes to such extent - to bring about increased
rigidity and gradual petrification In the price
structure.
"A realistic and factual analysis scarcely have
any other outcome than to pose emphatcay the ques
ton: How the codes and the MIRA Be welded into
device which, by promoting fair competitive practices,
price fexibty, and industrial stability thereby brings
about increased industrial production and increased real
social income?"
All Of which was considered too hot to pass on to
the public. The official report the study Is full Of
weaseed phraseoogy. It says tiebidS may 1ndi
cate the closest kind Of competitive bding" to which
purchasing agents will merely reply:
"Oh, yeah?"
Copyright 1895. NEA Service. Inc)