Show REVIEW OF DARROW N NR pA R p- A CODE SURVEY WASHINGTON May 21 AP AP Branding Branding the watchword of or fair competition an illusory phrase Clarence Darrows Darrow's review board following a survey of ot the application of codes to smaller businesses recommends a return to antitrust laws These laws were suspended under the National Recovery act to permit formation of ot trade n The e report of the board headed headed head head- headed ed by the veteran attorney C Clarence Clarence Clar Clar- r- r ence Darrow included among its observations the following T That Tha hat t the chIseler r under N R A might sometimes be other than a public enemy That prices should be determined determined deter deter- mined not by regulation or price filing or posting pasting but b by compe compe- That there is no such thing as s s fair lair competition the fundamental fundamental funda funda- mental theory of N R A but that all competition is savage age wolfish wolf wolf- ish and relentless Five Firo Sign Slen Report These statements were contained con eon tamed in the majority report signed by five of the six members of the review board John F. F Sinclair sixth member dissented and filed his own report Darrow and William O. O Thompson Thomp Thomp- son also prepared a Q tary report in which they said The choice is between tween monopoly monopoly oly sustained by government which is clearly the trend in the national recovery administration and a planned economy which demands s so o 0 c ownership and control There is n no hope for the small business mon man or for complete r re recovery recovery re- re covery in America ic e-ic in itt enforced restrictions upon production for the purpose of maintaining higher high high- er prices The hope for the Amer Amerlean ican lean people including the small smaIl busin business man not to be overwhelmed overwhelmed over over- whelmed by their own abundance dance thrice lies in the planned use of Americas America's resources following so so- tio nTo n. n To give the sanction o of government government gov gov- to sustain profits is not planned economy but a regimented regiment regiment- ed organization for exploitation Difficulties Seen The majority report sai said Price fixing by the industry and price re regulation by the government government gov gov- would involve in our judgment practically the same difficulties The problem of policing po po- the industry to prevent that price com competition which the American public has long relied upon to avoid the evils o of monopoly mo ma- inefficiency in business and high price levels would be insuperable A OIA return to the antitrust laws for the purpose of restoring com cam competition petition we believe e to be one of the great needs of the times Th These e laws require clarifying ing and ands s strengthening The majority report reflected the Thompson Darrow-Thompson sentiment on monopolistic tendencies in its steel code study The aim obviously the majority ma- ma report said is js entirely to prevent price com competition pet i t io n throughout this industry The board described as a subJect subject sub- sub open for argument the question of whether the recovery statute authorized price fixing methods Importance Cited The fact fad is js generally overlooked over over- looked or obscured but the small business enterprise has s often asocial a asocial asocial social importance out of tion to its size since it is often orten the c con cons o n s umers umer's sole barrier against complete and grasping Ir II Irresponsible Ir- Ir responsible monopoly the report re- re port said What is s called a ch chiseler eler likewise may not alwa always s be the public enemy he has been Instances arise where he is seen to be struggling to prevent pre pro vent sent the total absorption of an industry in in- or interest into a monopolistic listic organization or chain against which the public has no other protection The opinion therefore is forced upon us from what we have heard so far far that fair competition com corn petition is merely a resounding and illusory phrase What the powerful producer calls fair his weaker rival fiercely fierce fierce- ly y denounces as most unfair and there is no way to reconcile the difference Branded As Savage e All Al competition is savage wolfish and md relentless and can be nothing else One may as well dream of making war ladylike as U of ot making competition fair Big business begins by makIng mak mak- ing it impossible for the small man to survive and after he is eliminated it turns upon the weakest of the common agres agres- sors Monopolistic practices were mentioned J particularly in connection tion with the steel and motion picture industries Of the motion picture indus indus- Industry try the board said Monopolistic practices In this industry are bold and aggressive and its small enterprises are arc cruelly cr oppressed It appears that the code for tor this industry was made by representatives of the large producing companies Of steel it said Lo Long LongA A monopoly Monopolistic conditions have long existed in this due to its us absolute control by the larger companies This control is Js assured through the American Iron and Steel Institute supposed sup sup- posed to lo represent both large and small malt enterprises but wherein as a matter of fact the voting arrangements really leave the small enterprise at the mercy o of the large The federal trade commission recently made an exhaustive study of the steel industry and presented a report that held it to be essentially monopolistic and unfairly conducted In Itt the supplementary Darrow- Darrow Thompson report the statement was made regarding that in Olin the immediate present the federal trade commission is far fr r superior to the N R A as an ane e enforcing and fact finding agency To Th transfer th these e powers from Irom t the he N R It A to the federal trade commission as a next step this report r said would help inform t the he public as to the inherent difficulties dif dif dif- f which arise from the position position po po- s of the small man in the present stage of industrial development devel devel- and capital structure in inthe inthe t the he United States |