The Bismarck tribune., 1935-04-18
COLORPUL GENERAL
sees It AS AID TO
CAPITAL AND LABOR.
Declares Il First intelligent 1t.
tempt to Cure Nations
Economic Ills :.
PLEADS 20 NOT DESTROY IT.
Asserts Junking Measure Would
Be Like Burning House
to Rid Il Of Rats
PLEADS 20 NOT DESTROY IT.

Warrington, April 10. - @ - In
blunt, colorful words for which he Is
famed, Hugh 8. johnson told con-
gress Thursday that NRA was "the
first intelligent attempt" by the gov
ernment to curb monopoly and con-
centration Of industry.
Candidly, the former Blue Eagle
boss admitted errors In NRA. But he
contended forcibly they were mistakes
in his own administration Of the re-
covery unit, not Of the law, and ar
gued that to abandon N2A would b
like burning down your house TO get
rid Of q few rats In the attic"
"Clean up NRA," Johnson pleaded.
Don't destroy It,"
While the man who built the vast
code structure took the major share
OF its faults Oh his own shoulders, he
asserted frankly that zone Of the most
valid criticisms against the whole
New Deal is the fact that from time
to time 1t sorely lacked coordination" |"
Was Final witness
The picturesque former cavalry Of.
ficer appeared - the final and star
witness In the senate finance com.
mittee's NRA investigation. A huge
crowd heard him.
With few Interruptions, he read IN
S8-page statement In which he con-
tended NRA Was necessary because
the profit system had broken down
like the collapse Of IN empty shell"
In general, Johnson recommended
extension Of the present law, but pro-
posed the creation Of "some admin.
5strative agency" to permit some
necessary" relaxation Of the anti
trust laws, without allowing the
abuses" they were designed to pre-.
vent,
Snorts at Old Doctrine
He virtually snorted hts disgust ct
the grand and glorious" doctrine Of
'laissez faire."
price fixing under NRA," he said
scornfully. rs just . big bugaboo."
On the whole, Johnson said EN-
phatically. NRA has brought . vast
balance Of good"
On the controversial subject Of
production control, johnson said III
we can't regulate this economic en-
gine the next step win be abolition
Of the profit system and page Mr..
Stain"
mo more explosive act Of destruc-
ton could be committed than to kill
1t now and 60 back to the utter fu-
tility Of the system We had hare be.
fore 1885, JOHNSON testified.
The former cavalry officer warned
that It was . "fallacy" to contend the
old capitalistic system could not b
improved upon. and that IL We 20
back to that fallacy. the capitalistic
system Is on It's way out In the very
near future"
Reviewing the Developments In m
dustry following the war, johnson
said they disclosed - slow and i'm.
placable disinteeration Of the profit
system, and especially Of unregllated
and uncontrolled operation thereof,
as . reliable plan for keeping our
people employed"
when the structure smashed In
1912" he added. 1T was not . sledge
hammer cracking up . solid brick. Il
was the collapse Of IN empty shell"
with this collapse and the down.
ward spiral which followed. johnson
said, only five types Of concerns could
survive. He named them @ "the
concern With the big war chest and
q swollen surplus: ''the natural mo-
nopoly." ''the dealers In indispensa-
bles," "the sweatshop." and "the ghotl
Continued on Page Twoy