Evening star., 1941-08-05


roditieS, adjustments to enable
business to continue operations,
rent regulations, holding dotUn
farm prices after they hare
reached parity, and issuance OF
licenses as means OF enforce
nent.
ey the Associated Press.
Leon Henderson, head Of the Office
of Price Administration, told Con-
gress today that the Nation faced
the strongest and most pronounced
increase in the cost of living" even
if the administrations price-control
bill became law Immediately.
Testifying before the House Bank
ing Committee as the first witness
on the measure, Mr.. Henderson de-
clared that even with the powers
which the bill would confer, the
Government would have an "enor-
NOUS load" in trying to prevent the
countrys dynamic, volatile econo-
my" from entering an infiationary
stage.
Using a series of towering charts
to illustrate his remarks, Mr.. Hen
derson said the Nations price struc-
ture was knocking at the door" OF
1929 levels and heading toward the
1919 peaks.
Bill Would Set Price Ceilings.
The bill would give the President
broad power to establish ceilings
over prices for virtually all COM
modities and for rents in defense
areas.
1t would not permit him, however,
to regulate wages or utility rates
and farm prices could not be fixed
below 110 per cent OF parity or
below the market price of July 20,
1941.
The bill stipulates that the price
levels of July %. 1941. are those to
which the President should give due
consideration in establishing CELL
ings.
Even before the hearings opened
Republican members of the COM
mittee talked of drafting a COM
plete substitute for the administra-
tion's bill.
Wolcott Wants New Board.
Representative Wolcott, Repub-
lican, of Michigan said the substi-
tute should contain controls over
private credit, which he contended
was one of the basic sources Of
imitation. He said it also should
provide for administration of the
proposed law by a quasi judicial
board.
The administration measure
would give the President power to
designate any individual or agency
to administer 1t.
Mr.. Henderson testified that since
the outbreak of war 20 of the most
important basic commodities had
risen so per cent in price and were
increasing at an even more rapid
rate. This, he contended, was q
complete justification of the request
for regulatory legislation.
Those % basic commodities in
cluded several metals in which price
rises had not been so pronounced.
This was due, he added, to that
nature of restraint agreed on be-
tween the Government and the pro-
ducers. Without those voluntary
agreements" Mr. Henderson as
serted, I'VE would have had, for
instance, II or 1s cent copper in
stead Of 12-cent copper"
Steel Scrap Collusion Seen.
Although in the early months Of
the war prices in this country re-
manned relatively steady, the price
structure generally has advanced
about 20 per cent, he testified.
Discussing the difficulties Of con-
trolling prices through voluntary
agreements, the Governments chief
tool In the situation thus far, Mr..
Henderson mentioned scrap steel
dealers as presenting one OF the
most troublesome problems. AL
though he said much of the diff
Guilty was due to the scattered ma
ture of the business, Mr.. Henderson
testified that with great reluc-
tance" he had been forced to turn
over to the Justice Department evi-
dence of collusion on the part Of
scrap steel dealers. He said it was
the first instance of his ONCE having
to refer any case to the Attorney
General.