RECOVERY PLAN IN U. S. A.

Timaru Herald, Volume CXXXVII, Issue 19805, 22 May 1934, Page 9

RECOVERY PLAN IN U. S. A.

ISSUE OF HOSTILE REPORT

GENERAL JOHNSON PERTURBED United Press Association (By Electric Telegraph—Copyright WASHINGTON, May 20. The severest criticism to which the National Recovery Act has yet been subjected, was contained in the socalled Darrow report of over 80,000 words, which is published to-day with sharp rebuttal by General Johnston, the Administrator of the Act, attached. Months ago Mr Darrow was appointed head of the “National Recovery Review Board.” which, after protracted hearings, has come to the conclusions which are now published. The report declares that the National Recovery Act is a complete failure, and fosters monopoly and oppresses smaller enterprises for the benefit of of big industrial combines. The report recommends to President Roosevelt the socialisation and 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 the National Recovery Act codes of fair competition are to be made effective, they must be rigorously administered by the Government. He claims that under the present system of codes the authorities and big industries are placed in the position of “trying themselves.” General Johnston’s answer declares thet the report is “nonsensical and intemperate,” and in some instances, false. He suggests that M. Darrow seeks to offer the country the choice between Fascism and Communism, neither of which the American people accept.

BLUNT CRITICISM OF CODES.

GENERAL JOHNSON IN REPLY. United Press Association—By Electric Telegraph— Copyright (Received May 21, 5.5 p.m.) WASHINGTON,.May 20. The 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 has been found that the two industries mentioned are governed under the N.R.A. by powerful minorities to the detriment and eventual extinction of small operations. The report states that 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 are the sole barrier against the complete grasping of irresponisble monopoly. While under the codes the cost of living has increased, wages have not risen accordingly.” Mentioning motion pictures specifically, the report says: “The monopolistic practices of this industry are bold and 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 that no public official who has taken the oa'th to defend the constitution of the United States, could officially advocate such a programme.”