The Daily Alaska empire., 1934-09-05

OFFICIALS GUARD
 ACA|NSTHANCINC.
 ALIbIS ON A. A. A.
By FRANK I. WELLER.

 of the drought is going to be about as unlucky as jumping in front of freight train.
 The administration has made up it's mind about that. : For months it has been trying to get farmers to see that the req son their crops are so cheap is be- cause they grow lot more than the people eat. It has underwrit- ten the reduction of surplus acre. age and the Slaughter of surplus livestock, paying the farmers out Of processing tax charged the consumers.
 Don't Want Program Blamed
 Now the drought has done what Secretary Wallace had given crop control measures at least two more years to complete. As result, he says, food prices should rise about 6 or per cent. That is about as big an increase as farmers can ex- pect to get. If those who pro cess or distribute the farmers pro- duce jump their prices too much, the administration expects it's crit ics to cry, That's what comes from blowing under wheat and blowing under corn and cotton and killing pigs"
 MT. Roosevelt and Secretary Wal lace still believe crop production should be controlled through the agricultural adjustment adminis- tration, alternately increased and decreased according to market re- quirements, and they don't propose to have unduly high prices blamed on their program.
 At first the government will try to publicize unfair" practices
 There may be no need to do any more than that. Consumers coun- cils eventually are to be set up in every city and town to advise the public on food prices.
 If appeal to popular sentiment against profiteering does not keep prices within range the admins tration considers equitable or if combined interests corner a com modity of which there has de- veloped an insufficient supply, the President may lower the import duty on it by as much as 50 per cent. In numerous instances that would permit the profitable entry of a similar foreign product at prices which might dictate domes- tic values
 A second avenue of control lies in the MIRA codes prescribing flair practices" for the processors and handlers of foodstuffs.
 It is consiGered altogether prob able that the government would not undertake price fixing except as a last resort. It is believed to have authority for that under the agri- cultural adjustment act. The secre- tary of agriculture is empowered to license producers and distribu- tors to do business and to revoke or suspend licenses whenever rules and regulations are violated.
 The administration has inter preted the licensing provision to convey authority for establishment of minimum prices to be paid pro- ducers. The question arises in the official mind whether, by virtue of the same provision, the AAA may not establish both the maximum price to be paid to farmers and to be charged on the consumers bill.
 There have been five court de- cisions upholding the administra- tion's right to fix minimum prices paid to dairy farmers against one unfavorable decision. Officials ex- pect the question eventually to get into the supreme court.
 Remembers War Experience
 Frankly however, the adminis- tration wants to stay as far from outright price-fixing as possible. The government had an unhappy experience in that field during the war when it regulated prices by li- censing industry under the Lever act.
 At first the government tried to find the average pre-war non speculative margin of profit and hold retailers and wholesalers to it. It ran into difficulties because of the difference in operating costs of manufacturing plants in the same industry. Finally, upper and lower margins were fixed for each commodity.
 Drastic measures never may have to be taken, officials say, beyond keeping the housewife informed of average food prices There Is no ;,,etopna iy, uu1oirb fba cauc11tr1pr