More Light on the Recovery Act

(Continued from Page 8) as follows, do not involve a direct exercise of public authority:

"1. The pressure of informed public opinion.

"2. Voluntary acceptance among competitors agalnst action under anti-trust laws.

"3. Rules and regulations imposed by the protected industry

"To the extent, if any, to which these means of enforcement are in practice inadequate, the direct action of the Federal Government is invoked through:

"4. Heavy fines and penalties imposed under Sections 3 and 10.

"5. Injunction and mandatory order through the U. S. district courts.

"6. Under extreme circumstances, through the imposition by the President under Section 4 of the requirement that business be not done 'in or affecting interstate or foreign commerce' without a Federal license, which, for violations, may be revoked.

"The means of enforcement range therefore between the moral pressure of public opinion on the one end; and the drastic license power which, on the other end, means the power of 'commercial exile' of those who refuse compliance with the law.

"These are bold and drastic powers. The fact that they are lodged with the President without recourse to further legislative consideration naturally prompts the question: What, if any, are the guaranties against unfair or arbitrary exercise of the Federal power? The principal rvorthwhile guaranty is not stated in this or in any other law, namely, the common sense of the President, and of his administrator. A further potential protection, which in the long run would be potent and decisive against arbitrary exercise of discretionary power, lies in concerted re{usal of industry co-operation. Admittedly the effectiveness of the Industrial Recovery Act depends essentially upon the support of public opinion, and upon general industry co-operation. If it does not have these, it will fail.

"A third obvious and indispensable guaranty is, of course, in appeal to the Federal Courts. No Act of Congress may deprive a person of his constitutional rights. There is much ground for questioning the constitutionality of some provisions of this Act; but I believe no substantial ground for questioning the constitutionality of the Act as a whole. Of course any person may appeal to the courts on the ground of attempted deprivation of constitutional rights; and it is, I dare say, not unlikely that eventually he may be vindicated and his position sustained. But as now appears under this law-which has general public support-it is likely that any man who relies solely on the assertion of constitutional rights by appeal to the courts may eventually win his law suit, but go 'busted' in the process. Without reference to the merits of the legislation itself, I may say that the administration seems confident of the constitutionality of the Act, and that for practical purposes the most dependable security against unfair and arbitrary administration, is American common sense.

"It may be further asked: What is the protection of individual competitors against unfair or arbitrary exercise of authority within the industry itself ? There are four principal protections :

"1. The statutory limitations in the Act itself, such as the protection of small enterprises against oppression or discrimination; and the prohibition of action tending to establish monopoly.

"2. The administrative rules and regulations imposed by the President.

"3. Appeal to the Federal Courts.

"These are all important, but in practical effect are likely to be less valuable to any person engaged in industry, and less dependable, than the fourth method, which is:

"4. Participation as an association member, not only in the formation of industry rules to be incorporated in the Code of Fair Competition, but perhaps even more important, participation in the determination of methods and means of administration and enforcement of the Code within the industry.

"It is expected that these industry rules will be enforced by industry means, and that the direct powers of the Federal Government will be invoked only where the facilities of organized industry are inadequate."

Redwood Association Distributes Artistic Booklet at Chicago

The booklet entitled "California Redwood" recently issued by the California Redwood Association for distribution at the Century of Progress Exposition at Chicago is one of the finest and most beautiful pieces of advertising literature ever published by any industry.

One hundred thousand ,copies of this publication were printed for distribution at the California Redwood Association's exhibit at the World's Fair. and there can be no doubt that promotion of the sale of Redwood will be furthered by this activity.

The work of designing and ,compiling the booklet was done by C. H. Griffen, Jr., general manager and J. W. Williams, secretary, of the Association.

More than 80 illustrations in the 24 pages of the booklet set forth many of the uses to whi'ch Redwood is particularly suited, and the story is told mainly by the pi'ctures, assisted by terse captions, which can be read qui'ckly and easily.

The 'cuts illustrating the book are a tribute to the engraver's art and the typography is excellent.

By permission from the California Redwood Association some of the illustrations from this publi,cation will be reproduced in this paper in the near future.