INVESTMENT BLDG., WASHINGTON, D. C.; 11 W. 42ND ST., NEW YORK, N. Y.

Issued for members of the N. A. M. and affiliated organizations

NEW YORK, N. Y., March 18, 1935.

SENATE HEARINGS OCCUPY STAGE AS DELAY ON WORK RELIEF BILL RETARDS LEGISLATIVE PROGRESS

sage of a compromise amendment on the "prevailing wage" rk relief bill opened the way for the legislative progress that blocked for some time.

The new (Russell) amendment provides that the President shall use his discretion in setting wage levels, provided that they do "not affect adversely or otherwise tend to decrease the going rates of wages paid for work of a similar nature." It also states, however, that on the construction of "permanent buildings for the use of any department of the Government of the United States," prevailing wages shall be paid.

Meanwhile, Senator Copeland and a number of other Senators from the more densely populated sections of the country lent their support to the movement to limit the public works funds to 1.8 billions, thus forcing the President to rely upon the cheaper, direct relief, or dole. Previous supporters had argued for this reduction on the grounds that the larger expenditure would threaten the Governments credit; Copeland on the grounds that public works employment would provide only for manual workers and not for the unemployed "white collar" men which, he insisted, made up a large proportion of the unemployed in metropolitan areas.

STORM OF PROTEST RISING OVER LABOR DISPUTES BILL

Industry commenced to awaken to the Wagner Labor Disputes Bill last week with a bang. The Committee has been besieged from all over the nation with requests to be heard. The interest over-night seems to measure up creditably with the great wave of protest last session. Proponents may take a week, or even longer; but opponents should be prepared to appear now on call. Those manufacturers who want to be heard will be accorded consideration of their request if they wire Senator David I. Walsh, Chairman of the Education and Labor Committee.

Appearing as the first witness for the bill, Senator Wagner defended it but failed to explain it clearly. He maintained that it would not outlaw works-council plans unless they were "company-dominated." He was vague as to how "domination" was to be established, but intimated that it was synonymous with "financial support.'

[2] Despite the Senator's avowal, it is safe to expect that the law, which would be administered by a permanent National Labor Relations Board if passed, would serve to eliminate all employee representation plans, and force workers to use national unions if they were to have collective bargaining at all.

Secretary of Labor Perkins followed Mr. Wagner on the stand and said she was in entire agreement with him except that she felt that the permanent National Labor Relations Boards should not be an independent body, but under the jurisdiction of the Department of Labor.

President Green of the A. F. L. described his organization as a bulwark against strikes, and threatened that it would no longer urge workers to be patient if the bill should fail. He stated that "we must face the fact that we are only at the beginning of a series of strikes which will upset the entire industrial life of our nation if we continue to deny to workers their rights."

RICHBERG ADVOCATES REDUCTION IN CODES

The Administration's plans to expedite consideration of the revamping of the N. I. R. A. are falling through. A mustering of opinion hostile to the whole theory of the Recovery Act threatens to extend the Senate Finance Committee hearings on this subject for considerable time.

Donald Richberg and Clay Williams, retiring N. I. R. B. chief, have testified for nearly a week, the former giving his suggestions for revision and answering questions by the Act's critics. Other official witnesses, representing all sides of the controversy, will be called after his testimony is completed.

If-as now appears likely—the hearings are thrown open to voluntary witnesses, industrialists must stand ready to present their experiences and suggestions, whatever they may be, to the Senate group.

Chief among the opponents of the Recovery Act is Senator William Borah who claims it has fostered monopolies, and who would abolish all except the minimum wage, maximum hour, and child labor provisions.

Richberg has maintained consistently that these demands for a return to free competition would "play into the hands" of the very monopolies which the Senator from Idaho denounces. He advocates, instead.

1. Elimination of codes for all service trades, and

2. A reduction in the number of codes (from 731 to 181) by consolidating small codes with appropriate larger ones, and by providing for a "small industries code" with limited provisions, applicable to any small industry when "the true representatives of that industry subscribe."

He also advocated writing into any new act a "definition of interstate ocmmerce which would be safely and surely within the decisions of the Supreme Court." Industrial opinion, while not yet expressed before the committee, is not by any means quiescent. Opposition seems indeed to be mounting in many quarters, particularly among small businesses, against any extension.

The Illinois Manufacturers Association issued a statement last week that its membership was opposed to any form of renewal of the Act.

[3]

N. A. M. Committees Meet

While Congressional legislators have been holding their hearings, the N. A. M. has done likewise. Its hearings, however, have been in the form of committee meetings, where representative manufacturers have formulated sound policies for the Association to support.

The Taxation Committee under the chairmanship of A. L. Green, Chairman of the Farr Alpaca Company, met in New York, March 15; the Tariff and Public Relations Committees, respectively headed by H. L. Derby, President of the American Cyanamid and Chemical Corporation, and H. A. Bullis, Vice-President of Gereral Mills, Inc., on March 18, and the Board of Directors are scheduled to meet on March 19. Senator George of Florida at the time of his recent visit to the White House told the President that Congress favored voluntary codes by industries with the exception of compulsory minimum wage, maximum hour, and child labor provision upon all industries. Donald Richberg made a similar statement in the Senate hearings. This is in line with both the pronouncements of the N. A. M. Platform and the White Sulphur Springs Conference.

HOLDING COMPANY BILL BACKED BY PRESIDENT

Violating his announced decision not to comment on pending legislation, President Roosevelt last week sent to the Congress a bitter message in which he declared that "The utility holding company with its present powers must go." Patently, he would not have exerted his pressure in this manner unless the Wheeler-Rayburn bill were hitting nasty weather. Protests have been flooding into Washington, not only from utility owners, operators, investors, and workers, but from others who see the proposed measure as an opening wedge and precedent for government regulation and elimination of all "big business"-the big business which, through its mass production, has enabled America to produce its goods more efficiently and at a lower real cost than any other industrial nation.

After passing the House by a 3-1 majority, a measure repealing the publicity ("pink-slip") provisions of the income-tax law was reported favorably by the Senate Finance Committee in record time. Senate opinion, which heretofore has been in favor of such publicity, was seen wavering under the recent flood of protest.

Meanwhile, the expected reaction has started. Senator La Follette, father of the original publicity amendment, will counter-attack by pressing adoption of full publicity legislation, while Senator Couzens will ask for upward revision of the capital stock and excess profits tax.

Formal opposition to the 30-hour bill came from Donald Richberg in his testitoy hefore the Senate Finance Committee on the N. R. A. "You cannot devise lexible rule for industry that doesn't do a multiplicity of injuries and hard

Filing a one man minority report, Representative Lewis of Maryland opposed his 24 colleagues of the Ways and Means Committee in their favorable report for mmediate cash payment of the soldiers' bonus. He called it "an unjust and uinous financial program."

IS YOUR INDUSTRY HIT BY A. A. A. AMENDMENTS?

Read the following List:

Many manufacturers do not know that they would be affected by pending bills: which would give the Secretary of Agriculture virtual dictatorship, not only over all industries handling agricultural products, but also over all industries handling products competing with agricultural products.

For example, the Secretary could license any such industries, establish sales quotas for any such industries; fix prices at which each of the industries could buy or sell.

Distillers
Dyers

Pharmaceuticals
Potato Chips

Among manufacturing industries which the pending bills might so affect are:: Animal Feed Producers Animal hair Processors Animal Oil Processors Bakeries

Bone Processors

Brewers

Brooms

Brushes

Canners

Cartons

Casein

Cereals

Cheese

Felt Fabricators
Fertilizer

Fibre

Quilts

Ribbons

Rice Mills

Rope

Rugs

Salad Oil

Flour

Fruit

Furniture

Gelatine

Sausage Casings

Gloves

Sausage Makers

Chewing Gum

Chocolate
Cider

Cigars
Cigarettes

Cloak and Suit
Clothing
Confectioners
Corn Products
Cotton Gins

Cotton Mills

Creameries

Cushions

Is your industry in the above list?

Yarn

If so, your business will be affected, and you will want to write your Senators: and Representative about S. 1807 and H. R. 5585.

Raymond S. Smethurst, Assistant Counsel of the N. A. M., appearing before the House Agriculture Committee in opposition to the proposed amendments to the AAA to extend the power of the Secretary of Agriculture, said:

"In substance the power to issue licenses contained in Section 3 contemplates that industrial operations shall be conducted in the interest of agriculture primarily, and that the operations of manufacturing will be subject to regulations favored by producers of agricultural commodities without any necessary regard to the interests of those engaged in or dependent upon manufacturing.”

STATE N. R. A. ACTS FALL

The Supreme Court of Wisconsin and the Appelate Division of the Supreme Court of New York last week declared their respective State Recovery Acts invalid. In both cases, the measures were condemned because of the "abdication of legislative power."

[5] RURAL EDITORS GIVE APPROVAL TO NEWS SERVICE OF THE N. A. M.

INDUSTRIAL NEWS SERVICE goes weekly to 3200 weekly and small daily papers in every State. It is one year old and has had a steadily increasing usage in rural and small industrial town regions where the industrial viewpoint was not hitherto presented. Here are a few sample statements from editors:

Pennsylvania.-"It is breezy and timely and often throws needed light on some of the pertinent issues of the day."

"We are very well pleased with this service and use it liberally."

Ohio.-"

the rural press . . . has a big job in keeping people's minds

clear in this crazy ear. "We get ideas from it and information that is otherwise inaccessible." Iowa. "Think it is a very valuable service. Hope it succeeds in its intentions." Tennessee. "Your slant on the news seems to be fair. We use a good deal of it." "We understand your association has prepared material for publication. We would very much appreciate your sending us same at your earliest convenience." Montana.-"Receive it gladly-a valuable service these hectic times." New Jersey.-". . . an excellent service."

Michigan. "Like your stuff very much . . .”

New York. "Frequently use your matter in the editorial column without a change.'

it is a real service."

"A very good service."

Missouri. -"Because of the known prejudices of our people, we have not credited Washington Snap-Shots to your News Service, as we have believed, under the circumstances, that it would carry more weight without being so credited." "Service is O. K. and well liked by our readers."

Indiana. "It's the best free service we get."
Washington.-

our editorials."

most helpful . . . reproduce news in full and also use in

Florida. "Your releases are liberal and readable and glad to use many of them."

SECRETARY PERKINS HOLDS LABOR'S STATUS IMPROVED

The reply to agitators who have contended that labor has not benefitted through improved economic conditions was given by Secretary Frances Perkins in an analysis of a survey by the Bureau of Labor Statistics between January 1933 and January 1935. This survey showed:

An increase of 30.6 per cent in the number of workers.

An increase of 25.8 per cent in the number of man hours worked.

An increase of 62.3 per cent in weekly payrolls.

A decline of 3.7 per cent in average hours worked per week.

An increase of 27.6 per cent in average hourly earnings.

An increase of 24.2 per cent in per capita weekly earnings.

"Production, employment, and payrolls adjusted to the cost-of-living index had advanced, in manufacturing industries, to three-fourths of the peak year before the depression," the Secretary said. "Per capita weekly earnings, when adjusted to the cost-of-living index, were about 96 per cent of 1929 earnings." The Survey of manufacturing industries stated further that by 1932, 39 out of every 100 wage earners employed in manufacturing in 1929 had lost his job; by 1933, 43 out of every 100. By January 1935, the number displaced had been reduced from 43 to 25.

[6]

RECENT DECISIONS OF THE COURTS MAY HAVE IMPORTANT BEARING ON
PENDING LEGISLATION

In the case of Baldwin v. Seelig, decided March 4th, the Supreme Court of the United States unanimously decided that the provisions of the New York Milk Control Act, prohibiting the sale in the State of New York of milk purchased from producers in other States at prices less than the minima fixed by the State of New York, were unconstitutional because they operated as an "economic barrier" between the States and thus imposed a direct burden on interstate commerce. The Court, speaking through Mr. Justice Cardozo, pointed out that if this type of regulation were sustained: