"N.R.A. Complete Failure "

Manawatu Times, Volume LIX, Issue 7470, 22 May 1934, Page 7

"N.R.A. Complete Failure "

Trenchant Criticism By Noted Lawyer BENEFITING THE BIG INDUSTRIAL COMBINES United Press Association—By Electric Telegraph—Copyright. Received Monday, 7 pan. WASHINGTON, May 20. The severest criticism that the National Recovery Act has yet been subject to is contained in the so-calicd ‘‘Harrow Report’' of over SO,OOO words which is published to-day, with a sharp rebuttal by General Johnson, Director of National Recovery, which was attached months ago. Mr Darrow was appointed head of “The National Recovery Review Board.” After protracted hearings he came to the conclusions which are now made public. Ho declares that the N.R.A. is a complete failure, fosters monopoly, and oppresses the smaller enterprises for the benefit of the big industrial combines. He recommends to Mr Roosevelt the socialisation and 1 collective ownership and control of industry, followed by the. planned use of America’s resources, as the only remedy for the economic disease. Specifically Mr Darrow contends that, if under the N.R.A. codes fair competition is to be made effective, the codes must be rigorously administered by the Government. lie claims that, under the present system, the code authorities and big industries arc placed in the position of ‘‘trying themselves.” General Johnson's answer declares that the report is ‘‘nonsensical and intemperate,” and in some instances ‘‘false.” He suggests ; that Mr Darrow seeks to offer the country a choice between Fascism and Communism, neither of which the American people can accept. The Review Board was created by Mr Roosevelt to make a special study of monopolistic trends within the N.R.A. The major portion of the report deals with the. steel and motion picture codes, but the manner in which they are operating is held to be applicable to numerous others. It was found •that the two industries mentioned are governed under the N.R.A. by powerful minorities to the detriment and eventual extinction of small operators. The report states: ‘‘One may as well dream of making war ladylike as of making competition fair. All competition is savage, wolfish and relentless to the small business enterprise. Often consumers arc the sole barrier against a complete, grasping and irresponsible monopoly. While under the codes me /cost of living has increased, wages have not risen accordingly.” Mentioning motion pictures specially, the report says: ‘‘The monopolistic practices of this industry are bold ' n<l aggressive, and its small enterprise is cruelly oppressed.” After calling Mr Darrow intemperate,, General Johnson characterised the famous lawyer as a “philosophic anarchist.” He added: ‘‘No public official who has taken an oath to defend the constitution of tho United States could officially advocate such a programme.’ ’