The Waterbury Democrat., 1940-09-04

H01OU4y I44NAO4 SO4AS SAA CS0oAS
 Neither the European war nor Hitler's totalitarian methods, how ever, were responsible for the latest change. What forced it were certian economic studies made by experts of the monopoly investi- gating committee of Congress, known officially as the Temporary National Economic Committee (TNEC), which shattered one of the Malay Plans basic principles.
 The plan contemplates system of rigid price controls, particularly on commodities, in order to pre- vent profiteering and disruption of the civilian economy. Under the 1889 version the price of wheat, for instance, would have been fixed at a low figure. Now selling at 60 cents a bushel, wheat would be begged at around that price.
 TNEC experts, backed by AAA officials, objected to this. They pointed out to the Army that not only would this De highly unfair to farmers, but it would help throw the economic system out of kilter by reducing farm purchasing power and also discouraging fur ther raising of grain at a time when it was urgently needed. FARMERS GAIN
 The economists advocated that this price fixing aspect of the Plan be junked, and instead that established governmental agencies, familiar with the farm problem, be utilized to handle price and production questions. Strength ened by the broad powers granted in the Plan, these agencies could see that justice was done to the farmer while at the same time prices were kept m hand.
 The Army agreed and this re- vision, which in the event of war would mean hundreds of millions of dollars to farmers, was incor- porated in the plan.
 Another TNEC recOmmenda-
 ton incorporated in the Plan
 is for the Spacing" of war or
 ders. The Army and Navy have
 thousands of orders all ready to
 shoot the moment the country
 goes to war. Hundreds of plants,
 under the educational order"
 system in operation for several
 years, have machinery ready to
 produce the arms, munitions and
 other material that will be
 needed.
 TNEC experts pointed out that deluge of such orders would have serious economic repercuS- sions. They advised a spacing" system under which prices and supplies could be more easily con- trolled without impairing the pro- duction of goods.
 CONTEMPLATING ARMS INDUSTRY
 The TNEC also was responsible for the recent change in Army specifications permitting manufac- turers to bid F. O. B. factory in- stead of F. O. B. point of destina- ton.
 TNEC studies of Army purchas- ing methods showed that under this old practice a premium was placed on concentrating key in- dustries in dense and highly vul- nerable locations. Factories in the interior were at disadvantage, and the Arny's buying methods operated against developing them.
 The experts strongly advised that place of production and not destination be made the basis for bidding. This would develop interior plants and also, by in- creasing competition, have an important effect on keeping down prices.
 NOTE - The TNEC study on government purchasing methods is now being printed. It should be highly interesting reading. HOG.TIED
 Senator "The Man" Bilbo scored | an easy primary victory last week Equivalent to election in Missls- sippD, but he didn't escape being heckled.
 Some Mississippi voters wanted 10 know why Bilbo was traipslng around on tho hustingS on dnot ln Washington voting on the inc portart defense legislation.
 This challenge didn't faze Bllbo a bit, Equipped with q balls bearing tongue and impefiuFhable, 70 is never at loss for An answer, aulek as a flash no shot back:
 "l aent have Co be ln Wash. lnglen. I've get things ilked up se .e. ss.a.s maas !..il. ,y lnilusass :. isll ln