Evening star., 1937-03-02

Continued From First Page)
not be shortened" it added THE
necessity of shortening them below
this standard, in order to spread work
Is confession of failure in the eco
nomic system. 1t may still need to
be done temporarily, in emergencies,
but if an emergency standard of the
work-spreading sort persists into more
normal times. it may act to limit pro-
duction instead of merely to spread
work. and so may do real harm"
LAS to wages" said the committee.
I'VE accept the tentative finding of the
National Industrial Recovery Board
that minimum wage can be socially
beneficial not only as a safeguard to
the worker. but also as a wage-fioor
for the operation of the competitive
system. But in this field code eX-
perience developed or implied the need
of well-considered standards, which
would be even more necessary to a
long-run policy.
Effect of Wage DifferentiaIs.
'The effect of geographic. population
and other wage differentials requires
constructive treatment which will not
violently disrupt production and en-
ployment conditions. There is need
for greater simplicity and uniformity
than N. R. A. achieved, combined with
f1exibility and safeguards both for
labor and for employers who comply
with the wage requirements.
The committee said that "if con-
trolls of the N. r. A. type are to be
tried again. the experience indicates
that the attempt should be limited
to few important industries in order
that proper standards of investiga-
tion and adequate supervision may be
maintained. and should be guided
from the start by more definite prin-
experience indicates as being likely
to stand the test of application.
Under the type of policy finally
adopted by N. R. A, strongly
adhered to, there is little chance that
codes would be proposed in such large
numbers as to create serious difficult
ties. but even that chance might we'll
be guarded against" the report said.
"As to discriminatory price and sales
practice" the committe- declared. the
swarm of practices prohibited by code
provisions adopted to ST. JpOrt the min
imum price provi .ons and which gave
rise to insuperable difficulties in the
administration of N R. A. are in their
nature capable of use in such ways as
to amount to discrimination within the
meaning of the Clay IN act and the
Robinson-Patman act.
1T follows that the experience of
N. R. A. is a source of much in 'oi ma
ton as to the difficulties of administer
ing laws which prohibit such practices,
including complexities of cost alloca-
ton and OF terrrs and conditions of
sale"
Flexibility Needed.
I'VE think it is a clear deduction
from the evidence of the N. R. A. ex-
perience that the administration Of
such law should be accompanied by
the right to introduce flexibility in the
application of its provisions to the
particular circumstances of particu-
lar industries; and we think that this
experience throws grave doubt upon
the wisdom of attaching to such pro-
visions penalties of criminal nature
or even treble damages.
Among the remaining code pro-
visions there is group relating to
price fixing which do or do not go
beyond the limits of reasonable re-
straint of trade as heretofore de-
fined by the decisions of the Supreme
Court, depending upon whether they
are or are not so formulated as to
lend themselves to price fixing"
The committee said the experience
of N. r. A. indicates that trade prac-
tice rules should be initiated by the
industries-that is. by the men who
know most about the problems of the
industry and who have to apply them
in actual practice"
With regard to antitrust laws the
committee said that if they should be
relaxed to permit trade agreements
such trade agreements would, OF
course, continue in any event to be
limited by the developed common-law
rule against fraudulent and coercive
practices and by the rule that agree
ments which create special advantages
and upset equality of opportunity are
unreasonable restraints of trade"
Separate Administrators.
Finally" the report declared, while
labor and trade practice aspects Of
an industry program are definitely re-
lated in many ways and should be CO.
ordinated, N. R. A. experience indi-
Gates that separate administrative
bodies should be provided for negotia-
ton and for compliance activities,
both in the field of labor provisions on
the one hand and of merchandising
problems on the other"
N. R. A. was credited with moral
and economic value" through restric-
ton Of child labor, and its support Of
the collective bargaining principle was
described as "of great and probably
lasting importance, out Of proportion
to the immediate and tangible results
secured.s
Ofhcials studying proposed indus
trial legislation predicted meanwhile