Evening star., 1935-04-18
N. R. A. EXTENSION
Johnson,
CONCED|NG FLAWS
Throng Hears Probe Wit
ness Take Blame for Errors
of Code System.
SEES CAPITALISM FAIL
IF LEFT UNRESTRAINED
Warns of Communism-Denies
Small Man Hurt-Says Labor
Gains Too Small.
By the Associated Press.

BY the Associated Press.
In blunt, colorful words for which
he is famed, Hugh S. johnson told
Congress today that N. r. A. was "the
first intelligent attempt" by the Gov
eminent to curb monopoly and con-
centration of industry.
Candidly, the former Blue Eagle
boss admitted errors In N. r. A., but
he contended forcibly they were mis-
takes in his own administration Of
the recovery unit, not of the law and
argued that to abandon N. R. A. would
be like burning down your house to
get rid of a few rats in the attic"
Clean up N. r. A" johnson plead
ed Don't destroy it."
While the man who built the vast
code structure took the major share
of its faults on his own shoulders, he
asserted frankly that "one of the
most valid criticisms against the whole
New Deal is the fact that from time
to time it sorely lacked coordination"
AS an example, he said the Justice
Department and Federal Trade Com
mission did not" cooperate in g.
vigorous enforcement of the recovery
law.
Final Witness at Probe.
The picturesque former Cavalry of
flcer appeared as the final and star
uritnoce ~ fha Canafn
mittee's N. r. A. investigation. A
huge crowd heard him.
Almost the entire membership of
the committee was on hand, as john
son talked into loudspeaker system,
with Frances Robinson, his secretary
through all the turbulent months at
N. r. A., close beside him.
With few interruptions, he read an
a6-page statement in which he con-
tended N. r. A. was necessary because
the profit system had broken down
like the collapse Of an empty she'll"
In general, johnson recommended
extension of the present law, but he
proposed the creation of some ad-
ministrative agency" to permit some
necessary" relaxation of the anti
trust laws, without allowing the
abuses" they we're designed to pre-
vent.
AS the general proceeded with his
reading he became increasingly en-
phatic. Repeatedly he struck his
hand upon the witness table.
Derides big Shots"
He squirmed about on his chair
until at one time he actually mad one
shoulder braced against the table while
his voice poured out derision Of the
big shots of industry" for opposing
codes he said we're meant to help
the little fellow"
He virtually snorted his disgust at
the grand and glorious doctrine of
laissez faire.'
Price fixing under N R. A." he
said scornfully, lis just big buga-
boo." He contended that only nine
codes had any price-fixing provisions
and four of them had never been put
into effect.
On the whole, johnson said en-
phatically, N. r. A. has brought q
vast balance of good" He contended
it had helped the little man, by pre-
venting his destruction, and had
helped labor. He conceded, however,
that the law had not given labor AL
the rights intended"
On the controversial subject Of pro-
duction control, johnson said 'if We
can't regulate this economic engine
the next step will be abolition of the
profit system and page Mr.. Stain"
mo more explosive act of destruc-
tion could be committed than to kill
it now and go back to the utter fu-
tility of the system we had here be-
fore 1885," Johnson testified.
Warns of Yielding Now.
The hard-hitting former cavalry
officer warned that it was a ''fallacy"
to contend the old capitalistic system
could not be improved upon and that
IF we go back to that fallacy, the
capitalistic system is on its way out
in the very near future"
Reviewing the developments in in
dustry after the war, johnson said
they disclosed "a slow and implacable
disintegration of the profit system, and
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