Imperial Valley press., 1941-06-19


have all the powers of old NRA
Code Authorities. recently have
been given the informal stamp of
approval by the Department OF
Justice.
If that sentence doesn't exactly
set you back on your heels this
beautiful June day, let is sink into
Your chins until it reaches bone,
and then react accordingly. For if
ever there was anything which
consumers. middlemen and pro-
ducers never expected to see in
this land again, it was a return OF
even a faint smell of the en-
blaming fluid with which the Su-
preme Court laid away all that re-
mained of the late and unlamented
NRA blue eagle.
But all-out defense cleans out all.
And the idea that industry control
might be given legal sanction to-
day returns through an interesting
but rather complex chain of events
which. if you'd care to follow, is
something like this:
OPM SPRINGS
THE SURPRISE
First inkling that something like
this was afoot came through the
recent sensational announcement
from Donald M. Nelson, director
of purchases in the Office of Pro-
duction Management, outlining a
plan to increase defense production
capacity by limiting the lines of
merchandise that might be manu-
factured and sold for civilian con-
sumption.
To make q thing like this effec-
tive, there must be some form of
industry control. Since the Su-
preme Court had outlawed NRA and
since the whole idea of NRA is
repugnant to Thurman Arnold s
antitrust division of the Depart
ment of Justice, some formula had
to be found to permit manufac-
tGrers of radio sets, for example
to get together and agree to reduce
from 20 to 10 the number OF home
models which each would make.
Canny John Lord O'Brian, gen.
eral counsel of OPM, put the prob
lem up to the justice boys and in
q letter which Attorney General
Jackson wrote TO Mr.. O'Brian a
couple of months ago, but which
is just now being privately cir
culated in Washington, the whole
procedure of Industry Commit
tees" is outlined and given Depart
ment of Justice blessing. This let
ter will probably go down as the
charter authority for whatever in
dustry controls are created, and i
the war lasts long enough, it is
fairly safe bet that these commit
tees in some way will be controlling
practically everything you buy o.
sell.
What the attorney generals let
ter okays is the creation of Sepa
rate Industry Committees to ac
in an advisory capacity within th'
frame work of the Office of Pro
duction Management (KnudSen
Hillman, Nelson, Biggers, Stettiniu
and company and the Office o
Price Administration and Civilian
Supply Leon Henderson,. The In
duStry Committee, in other words
cannot become the code authority
for that industry. OPM and OPACS
combined retain all the authorit,
as the defense department of in
ternal economy, ministry of supply
or whatever you want to call it.
OPM- -OPACS make all pollcle
for the industry. in the public
meaning the national defense, in
terest. The Industry Committees, Il
be selected and named by OPM
CPAC, would make recommenda
tionS.
HOW TO MAKE 1T LEGAL
In the case of the radio manufac
turers, their Industry Committee
might decide that, because tn
Army needed all the automobile
radios or portable radios the indus
try could turn out, they should no
make any more sets in these tW'
lines ClNIlldll
please understand they haven
done this yet, and don't let thi
piece be an Orson Welles scare Il
make you rush out and buy pocke
radio, just in case. But 1T nigh
happenD
The point is, if the boys in th'
industry decided to restrict thei
output, without being aided or abet
ted by the government, that woult
be cohusion, action in restraint o
trade, and therefore a violation o
the antitrust laws. But if the Ra
dio Industry Committee should rec
ommend TO OPM-OPACS that M
more portable or auto radios b.
made, and OPM-OPACS should de
eide 1t good idea and tell thu
manufacturers not TO make any
more portable or auto radios, tina
would be perfectly legal.
There Is, however, a further kick