Evening journal., 1918-09-28
U. S. PREPARING
TO FIX PRICES
Government Control Policy
Provides for Fair Profits
to Dealers
WAGE ADJUSTMENT
ALSO is COMING

WASHINGTON, Sept 2s-Government
regulation Of retail prices Of food,
clothing and other necessities and the
equitable limitation OF profits" was
forecast officially by Felix Frankfurter,
special Assistant Secretary Of Labor
and chairman Of the war labor poll
cies board, as the only basis for
successful labor policy.
Resolutions adopted by the war labor
policies board calling upon the war
industries board. the food and fuel ad-
ministrations and the Department OF
Agriculture to proceed las rapidly as
possible with the formulation and en-
forcement" Of such a. program were
made public.
Mr.. Frankfurter said the "tremen-
dous difficulties inherent in undertake
ing price control" are thoroughly ap-
preciated, but, like other great prob
lens presented by the war, this under
taking must be pursued because the
successful enforcement OF labor poll
cies Is inextricably bound up with all
those conditions usually called the cost
Of living"
This aefnite forecast OF the Admin
istrations decision to enter the field Of
general price control has been expect
ed for several weeks. While Mr.. Frank
furter does not assert all departments
OF the Government are agreed that the
step is necessary, IL is known confer
ences on the subject have been in pro-
gress for some time and that a positive
agreement to undertake II was reached
before the war labor policies board
took the initiative.
The step is held to be an outgrowth 1
Of the investigations by various agen-
cies OF the Government into the cost
OF living incidental to adjustment Of
wage controversies. It Is said the ma
uonal war labor board, Of which VIII |
liam Howard Taft and Frank p. Walsh |
are chairmen, was compelled 10 aban- !
don its program for a minimum wage |
scale because 10 was found such a |
schedule would have 10 be more than |
nfty cents an hour TO meet existing |
living costs.
A statement by President Wilson
within the next few days is expected |
10 outline a program OF wage adjust |
ment, which will be based TO a very |
large extent on the proposed policy Of |
stabilizing prices by Government meas
ures.
The Administration heretofore has
avoided any program OF general com
modify price-fxlng, the effect 10 do so
by legislation having been abandoned
last winter, after a general commodity /
control bill had been drafted by the
war industries board, and given 10
Chairman Lever, OF the House Com
mlttee on Agriculture by the Presl-l
dent. The terms OF the bill were not
made public, and Il was believed the |
measure had been pigeonholed per-
manently.
Announcements by the Department |
OF Labor bureau Of statistics OF The alb |
normal increase in the cost OF living I
in Philadelphia. Boston and New York
we're intended to show how prices OF
necessities are soaring so that there
might be a general understanding OF
the problems confronting the wage
adjustment agencies OF the govern
ment I'm meeting the demands OF work
ers for increased compensation.
The investigation of the Depart
ment OF Labor in industrial eenters
have shown the great increases in
living costs, even though the food adj
ministration cOntended this week the
food bill Of the nation has increased
3ls per cent. during the twelve months
ending September 4.
Some officials here have contended Tor
months that the policy Of advancing
wages at different periods TO meet liv-l
ing costs could not be pursued, as II
was nothing less than q system OF pro-
gresslon, which never definitely met
the ISSUE and inevitably led 20 further
increases in prices, based on produc-
tion costse and further demands for
higher wages. u Is understood that
Bernard NJ Baruch and his associates
on the war industries board have been
convinced for some time a program Of
price control was necessary 10 stabil-
ize the economic situation OF the nation,
while Food Administrator Hoover and
some Others protested against such
step.
Price control offers the biggest eco
nomic problem yet confronted by the
administration, and II is believed hero
the President will go TO Congress to
explain the necessity for the step If It
is determined that legislation viii be
required. 1t is a problem, officials say,
That goes TO the very heart Of the busl-
ness OF the nation, and one that cannot
De solved without extended debate by
he interests involved.
L.. f~.~ Q@,Io ~