Monday, Aug. 13, 1934

Borah Bread

A troubled little baker in Glenns Ferry, Idaho (pop. 1,414), last week was E. W. Nestak. He had been charging his fellow townsmen 9-c- a loaf for fine unsliced white bread when an order came from the NRA Bakery Code Administrator to boost his price to 10-c-. Honest Baker Nestak thought it best to obey but he also wrote to his senior U. S. Senator to ask if the order was legal and binding.

He got a thunderous answer signed ''Wm. E. Borah":

"I feel you are justified in going ahead and conducting your business as you have been conducting it and disregarding all instructions to raise the price of bread. If you choose to take this course and are prosecuted I will see that you get counsel without expense to you.

"I contend that they have no right to direct you to increase the price of your bread. I not only contend they have no constitutional right but that it is indefensible in morals and economics.

"I observe [that] within the last few days the price of bread has been advanced if a loaf practically throughout the United States.

"This, roughly estimated, means an increase of 12% or more in the cost of the bread loaf in the American home. It means taking vast sums of money in the way of pennies out of the homes of the poorer people for one of the necessities of life. It is another illustration of how powerful interests stealthily and persistently rob the common people."

Next day Glenns Ferryites again bought bread at Borah prices, 9-c- a loaf, and NRA had to decide whether it would take on Senator Borah as a court adversary. Little appetite has the New Deal for trying conclusions with political champions. Senator Glass of Virginia, for instance, would love nothing better than to battle NRA or the Labor Board if either tried to interfere with the operation of his Lynchburg News.

Last week NRA's compliance officer in Idaho quickly found an excuse for sidestepping a contest with Lawyer Borah over Baker Nestak's bread prices. Said he in his best face-saving style:

"It would seem that under the circumstances . . . the baker was within his rights. . . .

"The reasons for this conclusion are found in President Roosevelt's executive order exempting businesses in towns of less than 2,500 population which do not employ more than five persons and do not compete with other businesses, with certain exceptions. These exceptions do not include bakeries."

Less fortunate last week were other businessmen who did not have such potent Senators to fight for them. In New York an automobile dealer who sold a Ford for $50 below list price was fined $500. When he refused to pay, he was sentenced to jail for three months under a State law to supplement NRA regulations. Under another State law a grocer who sold bottles of milk at 3-c- below the list price was also convicted, made liable to a $200 fine, six months in jail or both.

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