Evening star., 1941-07-24
Roosevelt 10 Decide
Knudsen-Henderson
Auto Cut Conflict
Clash Of Authority
Develops Over Differing
Views on CurtuiIment

The conflict OF authority between
the o. P. M. and the once of Price
Administration and Civilian Sup
ply, brought in the open yesterday
by William S. Knudsen, o. P. M. di-
rector, today awaited the decision
of President Roosevelt
Mr.. Knudsen, who said yesterday
that proposed executive orders pre-
senting the opposing points OF view
had been sent to the White House,
made it clear that the program for
reducing automobile output would
be worked out by o. P. M. despite
the tentative" proposal for a so
per cent cut within year made
recently by Leon Henderson, Opacs
administrator.
AS evidence that the o. P. NJ.
would proceed on this basis, officials
/ OF the agency held conferences yes
/ terday with the Passenger Car Sub
/ committee of the Automobile Indus
| try Defense Advisory Committee on
| the problem of diverting skilled
/ workers and raw materials to de-
/ fense production.
VIEWS on Cut Differ.
The o. P. M. chief has indicated
that shortages Of raw materials
would require a cut far greater than
the 20 per cent initial reduction"
asked by the o. P. M. in May, but
he stressed that the curtailment
must be gradual enough TO prevent
unemployment and dislocation OF
the industry.
Mr.. Henderson suggested curtall-
ment during the next three months
TO total of 100000 vehicles, or 20
per cent less than was produced in
a comparable period last year, and
to an average of 100000 during tbs
following nine months.
Enforcement of any eurtailment
would be placed in the O. P NJ re-
gardless of how 1t Is made. The
executive order creating Mr.. Hen
derson's Office provided that 1t work
on programs for allocating civilian
goods when necessary TO conserve
materials and that the programs
then be turned over to the o. P. M.
priorities division for enforcement.
Senators Criticize Henderson.
During the day, Mr.. Henderson's
activities were criticized by three
Senators. At a session Of the Sen
ate Defense Investigating Commit
tee, Senator Connally Democrat Of
Texas questioned him closely about
his campaign to put ceiling on
various prices and asked his author
ity for such actions.
When Mr.. Henderson insisted
authority had been vested in him by
Executive order, Senator Connally
said:
Then you have more authority
than any man in the United States.
including the President. II you've
got the authority TO Ak the prices
of any commodity. you've got the
authority to destroy our economy
or maintain it."
Senator Connany also referred to
Mr.. Henderson as dangerous fig
urea threat" and said his price
fixing efforts were polite form
Of blackmail."
Smith Threatens "Farmers March"
Senator Smith. Democrat, of
South Carolina threatened TO pro-
mote q farmers march on Wash
ington to discuss agricultural prices.
He told reporters that every agency
OF the Government seems deter.
mined to keep the price of farmers
products down" while every other
article is going up.
Senator Smith referred 10 Mr..
Henderson's agency and Senator
Thomas, Democrat, of Oklahoma
put in that 'erratic statements" by
Mr.. Henderson had destroyed his
influence as price administrator
Meanwhile, the o. P. M. was re-
liably reported last night to have
told the Steel Industry Advisory
Committee that it was exploring the
possibility of expanding the annual
steel capacity by as much as 15,O00.-
600 tons annually. o. p. M. pre-
viously had requested the industry
to submit proposals for an expan-
sion of up to 10000 900 tons q year.
Estimates of next years production
have run as high as 90, 900 900 tons.