Evening star., 1934-03-29
REPORT PREPARED
ON PRICE CONTROL
Special Cabinet Committee
to Advise Roosevelt
Upon Return.
b. the Associated Press.

b. the Associated Press
A special cabinet committee to
advise President Roosevelt on the
troublesome price control feature OF
the national industrial recovery act
will be ready with a report by the
time the President gets back from his
fishing trip.
The committee consists of Secre-
taries Wallace, Roper and Perkins,
and Attorney General Cummings.
When he created it MI. Roosevelt let
it be known that he was dissatisfied
with the posted price system used by
N. R. A, particularly in the steel
code.
Mr.. Roosevelt applied this particu-
larly to the steel industry in which
the Federal Trade Commission re-
ported there was a definite trend to-
ward a price monopoly.
Subject of Talks.
The criticism of some of the price
control methods, not only by indl-
viduals but the Trade Commission,
was understood already to have been
the subject of informal talks by the
four members of the special COM
mittee during the Executive Council
meetings.
The committee had before it no
definite plan and was described as
starting out on its investigation
without any preconceived idea that
the method of open prices in an in
dustry was either right or wrong.
While the outstanding example
used by the administration in its
study of price control efforts has been
the steel industry, scores of other
industries are operating under one
form or another of price control set
up under the N r. A. codes. OF 372
codes promulgated to date, slightly
less than half contain price control
methods.
Among the more recent applications
of posted price provisions to codes has
been that for the distilled spirits in
dustry, in which there have been two
postirgs of liquor prices since early
in the year.
The Intercabinet Committee study
necessarily will involve a conflict of
opinion not only within the N. R. A.,
but between that agency and the
Trade Commission. which diSsented
from the general idea in its recent
report on the steel industry The
Consumers Advisory Board Of the
N. r. A has given evidence that 1t
was not in complete agreement with
the idea.
The investigators also will be con-
cerned with the fundamental eco
nomic problem of whether, when pro-
duction costs are determined to
considerable extent by the codes. the
prices received by the producers
should not also be determined.
johnson Gets Report.
Hugh S johnson, the recovery ad-
ministrator, was given a report yes
terday by the Distribution and Con-
sumers' Trades Committee, created to
present the views of retailers. whole
salerS and consumers on points out
lined by Johnson during the recent
code revision conference, in which the
committee generally Endorsed the price
control plan. but recommended.
"A more uniform and equitable rule
of national price stabllizatlon IN those
cases where it is necessary to main
tain wages at decent standard
against the certain results of predatory
and cut-throat competition. and fur
ther insurance against increase in
prices faster and further than in
crease in purchasing power.
"A more effective rule on costs for
the purpose of maintaining rules
against sales below costs of produc-
tiOn "