RECOVERY DRIVE

Otago Daily Times, Issue 22268, 22 May 1934, Page 9

RECOVERY DRIVE

THE AMERICAN EFFORT " A COMPLETE FAILURE " (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, May 20. The severest criticism to which the N.R.A. has yet been subject is contained in the so-called Darrow report of over 80,000 words published to-day with a sharp rebuttal by General Johnson attached. Months ago Mr Clarence Darrow (a noted lawyer) was appointed head of the "National Recovery Review Board," which after protracted hearings came to the conclusions now published. The report declares that the N.R.A. is a complete failure, and that it fosters monopoly, and oppresses smaller enterprises for the benefit of the big industrial combines. The report recommends, to President Roosevelt the socialisation and collective ownership and control of industry, followed by planned use of America's resources a* the only remedy for economic disease. Specifically Mr Darrow contends that if the N.R.A. codes of fair competition Were to be made effective they must be rigorously administered by the Government, lie claims that under the present system of codes, the authorities and big industries, are. placed in a position of," trying themselves." General Johnson's answer declares that the report is " nonsensical and intemperate," and iii 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 will accept. ALL COMPETITION SAVAGE. WASHINGTON, May 20. (Received May .21, at 7 p:m.) The Review Board was created by President. Roosevelt to make a special study of the 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 were governed under the N.R.A. by powerful minorities to the detriment and eventual extinction of small operations. 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 small business enterprise, and often consumers are the sole barrier against a complete grasping, irresponsible monopoly. While under the codes the cost of living has increased wages have not risen accordingly." .Mentioning motion pictures specifially, the report says: "The monopolistic practices of this industry are bold and aggressive, and its small enterprise 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 the oath to defend the Constitution of the United. States could officially advocate such a programme."