Evening Star Newspaper, March 7, 1935, Page 4

A—4 =3 RCHBERG URGES NEW LR A LA Tells Senate Grdup Codes Should Be Limited to Major Industries. (Continued From First Page.) slons and language would be most desirable.” “They are intended,” he sald, “as an outline of those recommendations upon which there is & general accord and which may involve a minimum of controversy. They are regarded es practically necessary, in the light of experience, to the continued and improved functioning of the N. R. A. | “If they are adopted, they should aid to strengthen the exercise of the Federal authority within a definite area wherein it is urgently required; while at the same time removing many fears, either of undue extension of governmental authority, or of the illegal exercise of private economic controls to the injury of the public interest.” Arguing that the validity of law de- pends upon public opinion, Richberg said that “when the Supreme Court is called upon to answer the question, is this law a reasonable exercise of & power clearly conferred, it is not the individual opinion of the single judge, but the propondering public opinion, which should be decisive.” “Of the anti-trust laws, he said: “Our legislative, administrative and Judicial efforts to enforce the principles of the anti-trust laws have been a de- ceitful failure, a continuing public in- jury for 45 years. They have been deceitful because they have held out the promise of protection from mo- nopoly and restraint of trade, while in fact they have not supplied any of th at. “For the first time we have acquired the ability now to give an honest pro- tection to workers and consumers against the abuses of economic power. It would be well to preserve this ne found ability and to use it effectivel Richberg grouped complaints against N. R. A. under five heads, giving per- sonal comments on them: Complaints of non-eniorcement— “Considering the millions of employes affected, it is evident that the labor provisicns of the codes have been gen- erally complied with.” Complaints of individual hardship and injustice: “Necessarily the effort to establish industrial codes would produce many cases of individual in- jury. * * * Over 1171 exemptions from the operation of specified code provisions have been granted.” Complaints of monopolistic prac- tices and oppression of small enter- prises: “The general proposition that the effect of the codes upon small enterprises has been harmful, can not be sustained. The steady decline of business failures * * * is a complete refutation of this charge.” Doubts Consumers Injured. Complaints of injury to consumers: “The question of the effect upon con- sumers of the codes is cne concerning which there may be endless argument.” He then quoted Dr. Frederick C. Mills of the National Bureau of Economic Research, as saying that the price movements have been “saluta: Complains of management and labor against each other and against N. R. A: “The great difficulty en- countered by N. R. A. in the field of labor relations has resulted from the absence of an adequate organization of labor in the United States. The major issues regarding terms and By the Associated Press. Donald R. Richberg, director of | resident Roosevelt’s Emergency Coun- | cil, today gave the Senate Finance Committee these 17 specific suggestions for N. R. A. legislation. “1. The policy of Congress to meet the needs of the present emergency and to prevent its recurrence by ap- propriate regulations of interstate com- merce should be more clearly defined; and the administrative activities to accomplish these defined aims should {be explicitly authorized. This will | serve, not merely to strengthen the |exercise of administrative authority, but also to define its limitations. “2. The act should be extended sub- stantially in the present form for two years, so as to allow for a f development of administrative pro- cedures and & clarification of the en- tire problem prior to the enactment of such permanent legislation as may | then seem desirable. | “3. The flexible machinery of code | formulation and administration should be preserved with the use of such in- strumentalities of self-discipline as code authorities permitted, but with express restrictions upon the exercise | of any public authority by any private | body. THE EVENING STAR, WASHINGTON, D. C, THURSDAY, MARCH 7, 1935. R. A. Proposals “4. Provision should be made for the voluntary submission of codes. But codification should be limited to those trades and industries actually en- gaged in interstate commerce, or af- fecting it so substantially that the establishment and enforcement of standards of fair competition therein Donald R. Richberg (right foreground), director of the Emergency Council, as he appeared before the Senate Finance Committee today to outline the administration’s views on N. R. A. It was his first appearance before a congressional committee as a representative of the President. N. R. A. Legislative Plans Richberg Presents to Senate Finance Committee 17 Specific Suggestions to Extend and Strengthen Present Administration. —Harris-Ewing Photo. are necessary for the protection of interstate commerce. “5. In the approval of codes of fair competition, the President should be required to make findings that the standards laid down by the Congress had been met. These standards should include clear and practical definitions and prohibitions of monopolies and monopolistic practices. In the lan- guage of the President’s message: “‘We must make certain that the | ties, privileges of co-operating to prevent |shall be lawful only when the codes | | unfair competition will not be trans- themselves have been written in com- | formed into a license to strangle fair | pliance with the anti-monopoly re- | competition under the apparent sanc- tion of the law. “There should be authority pro- vided in the law for those controls |7 (A), which contains a statement aver natural resource industries, which | of principles which are gaining in | are required for eliminating waste, | general understanding and acceptance controlling output, stabilizing emplo ment and the protection of the p\lbllci interest.’ i “6. The President’s power to im- pose conditions upon his approval of a code, or to require amendments or modifications thereof, should be ex- plicitly given. But the proponents of voluntary codes should have the right to withdraw their consent from codes s0 modified as to be unacceptable to them, Power to President. “7. There should be a clear grant of power to the President to impose & limited codc whenever there is no code in effect, which limited codes should contain only certain requirements, such as minimum wages, maximum hours, the prohibition of notoriously unfair business practices, provisions to prevent the waste of natural re- sources and to require that informa- tion be furnished which is necessary to the public interest. “8, The Congress should itself set the standards of minimum wages and maximum hours for administrative application in limited codes. Some flexibility in these standards is ul:m-| lutely necessary, but the area of ex- ecutive discretion should be rather narrowly defined. “9, Provision should be made for financing code administration so far as possible by the trade or industry concerned, subjecting the collection | and administration of such funds to the general approval of the N. R. A, so as to protect individual and mi- nority interests, as well as the public | interest. “10. The provisions in the present | law for voluntary agreements to im- prove industrial or labor conditions should be preserved. “11. In order to sustain the ef- fectiveness of codes and agreements the use of insignia and labels should | be authorized, whereby consumers | may assist in supporting the stand- ards of fair competition. Restriction of Exemptions. “12. The present exemption from the provisions of the anti-trust laws | | should be restricted and defined .so | | as to provide that co-operative activi- | legalized by code provisions, | quirements of the act. “13. The rights of employes should be defined, as at present, in section and which have already received the Advance Spring Schloss Bros. TOPCOAT - PROMOTION interpretation and sanction of the Su- preme Court. “14. Various terms in the act should be clarified by definition. “15. The general provislons of sec- tions 8, 9 and 10 should be continued with some desirable improvements in language. (These sections deal with the President’s authority to place some codes under the A. A. A, his oll con- trol authority and his powers to pre- scribe regulations.) Stronger Machinery Urged. “16. The machinery for the enforce- ment of codes should be strengthened by providing for: (a) Preventing vio- Iations by equity procedure; (b) mak- The wo Health means everything for his fu-] ture. 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