Evening star., 1935-02-22
PERIL Of FASC|SM
SEEN IN A.A.A. BILL
'TugWell Declared Manipu-
iating Measure to Coerce
Business.
BY DAVID LAWRENCE.

culture, he has succeeded in selling to
Secretary Wallace and Chester Davis,
agricultural administrator, the most
astounding piece of legislation in the
whole New Deal.
If Congress accepts the bill-which
closely resembles German fascism-
there will be no further worlds in
agriculture for Mr.. Tugwell to con-
ouer and he will be free to turn his
attention to the other branches OF
American industry which his economic
views have not yet encompassed.
Under the guise of clarifying
amendments. Mr.. Tugwell's proposals
have been introduced into Congress.
They are fully indorsed by Wallace
and Davis and they would make it
necessary for all businesses, directly
and indirectly related to agriculture,
to have a Federal license. This would
affect concerns with a volume, it is
estimated, of s2O,OOO,ooO00 a year
clarifying" Means Expanding.
The device is a simple one and
unless comparison is made, paragraph
by paragraph with the existing law
it is not apparent how far-reaching is
the new legislation.
Unuuestionably the word Clarifying
Is right. The old law is clarified so
that vague language is made clear and
uneuuivocal. Where heretofore there
was no sure evidence of desire to
put all agricultural businesses under
the thumb of the Secretary OF Agrl-
culture, the new bill removes all doubt
Clarification in this case means eX-
pansion in power.
With characteristic indifference for
the views Of Congress-indeed, bear
ing every evidence of belief that
members of Congress will not have
brains enough to see the true meaning
of the clarifying" amendments
measure makes it possible for the
Secretary of Agriculture to coerce
every business related to the farm, and
also every article competing with any
farm product. Instead of requiring
that so per cent of a given group in
any business must agree to the Secre-
tary's plan for marketing or before the
remaining members of group can
be compelled to accept it, the new bill
makes it possible for the Secretary to
threaten the withdrawal of a license
and thus coerce anybody who dis
sents from his DEGREES.
Bo1sters A. A. A. Powers.
Originally the licensing power was
granted to the President in the ma
tional industrial recovery act as a
means Of making minorities come into
line on codes, but the power lapsed
last year and Mr.. Roosevelt didn't
"aSk for its renewal in his message
this week. As for the A A. A., how
ever. the licensing power not only
remains, but is strengthened in such
a way that majorities can now be
coerced as well as minorities.
Here is The new paragraph which
would put the Federal Government in
complete control of the food industry
and all by-products and all competing
products. The Secretary Of Agricul-
ture, it says, shall have power:
After due notice and opportunity
for hearing and upon a finding by
the Secretary that such action will
tend to effectuate the declared policy
OF the act, to issue licenses to pro-
cessorS, associations of producers, and
others engaged in the handling Of
any agricultural commodity or prod
uct thereof, or any competing COM
modify or product thereof, in the cur
rent of or in competition with or so
as TO burden, obStruct, or in any way
affect. interstate or foreign commerce.
which (that is the hcenses) provide
that such handling may be engaged
in by the licensees only upon such
terms and conditions not in conflict
with the existing acts Of Congress or
regulations pursuant thereto, as may
be necessary
Sees a Sop to Farmer.
Then the bill goes on to say that
refusal or failure to sign market
ing plans advanced by the Secretary
makes it possible for the Secretary
to determine that the issuance of a
license is "the only practical means
of advancing the interests of the pro-
ducerS of such commodity"
There is in the measure a SOD to
the farmer in that it is stipulated
he cannot be given a single license
as producer, but he is to be treated
as handler of each of the COM
modities he raises so that conceivably
he may have five licenses instead of
one.
The new bill also makes it possible
for the Secretary to get so per cent
agreement, for instance, with wheat
producers and that would give him
authority to coerce the millers and
all retailers into accepting the prices
dictated by the Federal Government
all along the line from the farm to the
store. He may favor producer, or
middleman or retailer at will.
Compared With Hitler Plan.
1t Is possible that the Federal Gov
ernment could make prices fair to all
interests, from the producer and
middleman to the consumer. but such
wisdom has not yet appeared in these
precincts with respect to other ad-
ventures in price fixing.
1t is possible also that the Depart
ment Of Agriculture will be fair and
reasonable about revoking licenses,
but the principle IF the new legisla-
ton clearly vests in the Federal Gov
ernment comprehensive control over
food businesses of all kinds, and
textile and other commodities grow
ing out of the products of the soil.
They have tried it in Germany under
Hitler, and Mr.. Tugwell observed
something of the same kind in Italy
under Mussolini last Autumn. But
Congress hasn't gone Fascist yet and
the clarifying" amendments are in
for some severe scrutiny.
The industries involved are meat
packing, canning, dairying, milling,
cottonseed crushing, soap making,
sugar refining. textile industry and
all businesses handling raw materials
>or finishing products originally COM
ing out of the soil.
(Copyright. 1889