N.R.A. IS FAILURE.

Star (Christchurch), Volume LXVI, Issue 20311, 22 May 1934, Page 1

N.R.A. IS FAILURE.

Fosters Monopolies, Declares Report. United Press Assn.—By Electric Telegraph—Copyright. WASHINGTON, May 20 The most severe criticism to which the National Recovery Act has yet been subjected is contained in the socalled Darrow Report, of over 80 000 words, which was published to-day. To the report is attached a rebuttal by General Hugh Johnson, who is administering the N.R.A. Early* in March Mr C. S. Darrow, a noted barrister, was appointed head of the “National Recovery Review Board,’’ which, after protracted hearings, came to the conclusions which are now published. The Board was created by r President Roosevelt to make a special study of monopolistic trends within the N.R.A. The report declares that the N.R.A. is a complete failure, that it fosters monoply and oppresses the smaller enterprises for the benefit of big industrial combines. The report recommends to President Roosevelt socialisation and collective ownership and control of industry, followed by a planned use of America’s resources as the only remedy for economic disease. 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 numbers of 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 operators. The report states: “One may as well dream of making war lady’like as of making competition fair. All competition is savage, wolfish and relentless to the small business enterprise. Often consumers are the sole barrier against a complete grasping and irresponsible monopoly. While under the codes the cost of living has increased, wages have not risen accordingly.” Referring to the motion picture industry’ specifically, the report says: “The monopolistic practices of this industry’ are bold and aggressive and its small enterprises are cruelly oppressed.” Specifically’, Mr Darrow contends that if the N.R.A. 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 authorities in the big industrise are placed in the position of “ trying themselves.” General Johnson Replies. 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 the choice between Fascism and Communism, neither of which the American people accept. 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 I a programme.”