N.R.A. INVALIDATION

Hokitika Guardian, 30 May 1935, Page 5

N.R.A. INVALIDATION

CONFUSION ENSUES

BIG TASK FACES PRESIDENT

(United Press Association—By Electric Telegraph—Copyright).

NEW YORK, May 28

The Washington correspondent ot the “Sun” reports: The wildest confusion followed N.R.A. invalidation. Surrounded on all sides by wrecked hopes and exploded theories President Roosevelt and his advisors have worked frantically to devise a way ot rebuilding the “New Peal” structure along constitutional lines. Immediate concern has centred around proposed changes in the Agricultural Adjustment Administration law, which was to have been amended in the interest of large scale marketing and licensing schemes. These are now clearly unconstitutional. The Utilities Bill, which gave the President wide powers over the “holding” companies, also fell under the shadow of unconstitutionality. The Cotton Control Act, as well as the Wagner Labour Hill, and the Hanking Hill are also threatened. . A fear, too. is now expressed that tlie Supreme Court will next declare to be unconstitutional another vast field of the “New Peal” legislation, based upon the taxing powers ol Congress, and through the exercise of which the Federal Government encroached upon fields specifically fenced off against it. or reserved to the States.

Rep resent, ati v«. industries in cl lea ted to-day that they would endeavour to preserve the wage scale and the working hours provisions of the N.R.A. Codes, despite the Court's invalidating decisions.

On the other hand, there ape- reports of retail price cutting in the tobacco and liquor industries. The leaders of the United Mine Workers and the United Textile Workers’ Unions, two of the largest in the country, staled that they will order strikes if the employers try to return to the wages, the hours, and the conditions prior to the N.R.A.

Wall /Street \\*as confused to-day. The stock market opened with a tremendous trading pace at a rafjg of four million shares for the day, although this slackened. Stocks dropped out to six points in the afternoon under a heavy selling wave.