Evening star., 1935-02-20
F0RD-N.R.A. STRIFE
DECLARED At END
Executive Order NuIIified
Through Waving of
Technical Rules.

henry tOrd Is DdCk III SOOu StaIlu-
ing with the Government.
Barred few months ago by execu-
tive order from motor vehicle con-
tracts running into the millions by
refusal to sign a certificate of COM
pliance to the automobile code, Ford
for several weeks has been doing
business with the Government through
the Northwest Motors Co. of Bethesda,
Md, local distributor, whose own GER
tificate is being accepted.
This became known today as the
Associated Press announced that steps
are under way to remove some of the
technicalities surrounding Govern
ment contractural awards, to give
more business to Ford, and aid some
other large concerns also. Among
these, the Associated Press said, would
be Sears, Roebuck & Co., Chicago
mail order house, whose president,
Robert E. Wood, recently was Sc
lected to advise in the spending Of
$4,000, 100000 under the proposed
work-relief bill.
Approval Held Certain.
1t seemed certain, too, that the
present arrangement under which
Ford sales are being made would get
the approval of Controller General
McCarl, who ruled out the Detroit
motor king in May.
The barrier which has hitherto
stood in the way of Ford sales was
an executive order issued last March
which provided that anybody doing
business with the Government must
sign a certificate Of compliance with
the applicable code. and must further
certify that all products entering into
the articles being sold likewise we're
produced under code and would con-
tinue to be.
This was an amplification of an
earlier executive order on code ad-
herence, and was viewed as a club
to be welded against Ford; inasmuch
as few months previously. Con-
troller General McCarl had held at
the outset of the fight between Ford
and the N. r. A. that the signing of
a code itself was not necessary pre-
requisite to getting Government
contract. McCarl said, however, that
once code was adopted, 1t was bind
ing on all members of an industry.
Sabine Challenged Order.
This latter executive order was
challenged by r. P. Sabine, head of
Northwest Motors. Affirming his own
adherence to code, Sabine, in bidding
for business. specified he was not
binding the Ford Co., and could go no
further than to say that to the best
of his knowledge the product he was
offering was being made under code.
McCarl held this qualification dis
qualified the bidder, and when the
issue went to court, the Government
was again victorious.
Temporarily, the matter rested
there, but then, 1t was understood,
when the Federal Alcohol Control
Administration sought an executive
order similar to that which stirred
the Ford trouble, Attorney General
Cummings advised against it, cloud
ing its validity. On the basis Of this
holding and the further fact that
the Ford sales department in De-
troit had once stated that Ford was
complying with the automobile code,
the Northwest sMotors was understood
to have maintained its right to give
an unqualified certificate Of compn-
ance. Departmental officials seem
to have gone along, for the Agricul-
ture Department has bought some 400
cars. Interior about IS, Commerce is
reported to be open to acceptance of
Ford bids and the company Is also
expected to seek to qualify for $500
cars for the War Department.
N. r. A. May Finally Decide.
Controller General McCarls Office
is not required to do further than
see that this certificate, accompany
Ing bids. is unqualified. Should q
question be raised as to compliance
with a code, the N. r. A. itself would
have to decide, and then only an
adverse ruling would bring McCarl
back into the picture.
According to the Associated Press.
slmpl1ned regulations which now are
being drawn. would prevent manufac-
turers actually complying with N. r.
A. codes from being excluded by tech.
nicalities from Government orders.
even though they might not be actual
This In effect would In
validate the March Executive order
and put the matter back where 1t was
before that time. It is the intention,
also it Il. understood, to allow sigma
tories to contest in court possible fu-
ture code changes which might be
Objectionable.
In refusing to sign formal certi-
dcate of compliance. one of1icial ex-
planned, Ford feared that he would
foreclose himself on going to court |
TO fight later changes ir the code.