Evening star., 1937-05-27
FAIR TRADE ACT
|SHELDPLANNED
Program Designed to Sup.
pIement Wage-Hour Law
Due Next Session.
BY the Associated Press,

WV "SNA SSSoIVl1s
BY the Associated Press.
Informed officials said today the
administration intends to supplement
pending wage and hour legislation
with broad fair trade practices pro-
gram at the 1898 session Of Congress
The administration advisers virtu-
ally have completed the draft of a
fair practices act. authorities said, but
it will not be offered this year.
Most officials studying the problem
were described as believing the wage
and hour program should be enacted
flrst and its operation observed before
tacking on trade practice law.
In addition. it was said, the trade
practice program would be erected on
the same constitutional foundations
as the pending labor legislation,
covering only industries operating in
interstate commerce.
Would Await Court Test,
Thus, officials explained, if the
wage and hour act Is validated by the
Supreme Court, Congress might add
trade practice standards with conf
dence that they would meet constitu-
tional requirements.
The trade practice program calls for
an expansion Of the Federal Trade
commissions system of voluntary
agreements among manufacturers and
business men.
The Commerce. nopor+,,o,t ,,o,,,l
meet with industrial representatives
IN drafting standards for each indus
try. Although the department could
not dictate standards, it could veto
any proposals it considered against the
public interest.
The Trade Commission would have
authority to enforce the agreements.
Where violations were found 1t could
issue cease and desist orders.
Wage and Hour Measure.
The wage and hour bill would set up
a new five-member board to admin
lister the labor standards. Officials
said, however, this body would have
no part in the trade-practice program
other than to consult with the Com
merce Department and the Trade
Commission on mutual problems.
1t was decided to divorce admins
tration of the two programs, authori-
ties said, because studies of N. r, A.
activities have shown that organiza-
ton attempted to cover too broad q
field.
The trade practice program would
not be compulsory, but officials ex-
pressed the belief that most indus
tries would participate in order to
eliminate wasteful and unnecessary
practices, to define their legal respon-
sihilities more clearly and to receive
benefits offered by the Commerce De-
partment.
Among the latter the department
expects to establish a bureau Of in.
dustrial economics to supply a variety
OF up-to-the minute business informa-
ton.
Scattered Comment in Congress.
Meanwhile, as preliminary to the
real controversies expected to begin
with the hearings next week, scatter
ing comment continued on the pro-
posed legislation.
From the Republican side Senator
Austin Of Vermont attacked the meas
ure as restrictive Of commerce among
the States. Criticizing the broad dis
cretionary powers proposed for the
administrative board, the Vermont
Senator raised the controversial diff
ferential issue.
The Government could fix one set
OF standards for district In the
South and another set for a district in
the North" he said "sufhciently disad-
vantageous to one district to drive it
out of business"
Defense of the measure was voiced
by one OF It's co-sponsors. Senator
Black OF Alabama. in a radio address
last night in which he claimed the
proposal constitutes fulfillment of a
Democratic platform pledge to meet
the problems Of labor standards by
constitutional means.
Secretary Perkins urged that the
board to administer the law be placed
under the general structure and pat
tern OF the Labor Department" in
stead OF being designated an inde-
pendent bureau.
Chairman Connery Of the House
Labor Committee said, however, the
bill did not contemplate placing the
board under any cabinet omcer.
The board, he added, would not re-
quire personnel anything like the
N. r. A., which had 4,168 persons on
the pay roll at its peak.