Detroit evening times. (Detroit, Mich) 1921-1958, 1941-04-17
BY HUGH $. JOHNSON

BY HUGH s. JOHNSON
THE most important and en-
4 coursging domestic war de-
Xelopment is the creation of the
Office of price administration
and civilian supply and the APP
pointment of Mr.. Leon Hender-
son as its administrator.
We shall discuss the second
aspect first. because any such
move as this is exactly as strong
or as weak as the man who runs
it. Although this writer brought
MIR. Henderson into the control
ing government group. this col
umn has sometimes criticized
and disagreed with him. Never
theless for this particular job
and il may be the most impor-
tant to the nation in the whole
government-the selection could
not have been bettered.
Mr.. Henderson is no yes-man.
He is absolutely fearless in de-
Tending his own opinion regard
less of the prestige or position
of his adversary. That is eX-
actly why he was selected from
an obscure background to be
chief OF the research division Of
NRA.
LIE Is a good administrator.
II He knows how to organize
and apportion work TO subordi-
mates in the manner best suited
to get il done quickly.
lie mas the supreme gift which
makes Hitler's astonishing per-
formanceS' possible. He knows
how to select the best men for
particular Jobs. reward them if
TREY them
if they don't. He is not jealous
of his subordinates and does not
appropriate their good work for
his own reputation. He gives
them full credit.
He is good in industrial con-
ferences because he knows his
stuff and relies on argument
rather than dogma. Finally,
and most important of all, he
has been working on this ma
tional price control problem for
eight years and accordingly
knows more about it than any
body in either government or
industry. and has a better
knowledge of where and how to
get the controlling facts and
figures quickly.
So much for that important
side. The second side covers
policy. authority and method.
As a policy the necessity Tor
price control is absolute There
is no doubt that increased prices
and costs that already have
been permitted will add billions
of dollars to the cost of defense
more billions than all the in
creased taxes that have been
considered in the widest dreams
can offset.
THE cost of living has not yet
i reflected these but it most
certainly will. The sensitive in
dex Of the department of labor
shows 3712 per cent increase in
the price of % basic commodi-
ties since August. 1889. While
these are irregular as among
particular commodities, the gen.
eral inflationary and destructive
effect is inevitable and the pro-
cess has only Just begun.
As proved by our experience
in the World War the whole
price situation should have been
taken in hand when the defense
effort started. The failure to
do so is the most obvious and
inexcusable incompetence in the
whole industrial mobilization.
Even now the government is
uncertain as to whether il shall
put a ceiling over all prices or
attempt TO deal with few
prices separately. The World
War proved beyond question
that the latter way is like trying
TO cure smallpox by rubbing lard
on the sores.
Every price is a composite of
all costs and prices. You cant
keep the general price index
down and let some prices sky
rocket as they Will. You can't
ask one seller 10 keep his prices
down and let the sellers whose
prices make his costs. raise their
prices to him without control.
YOU cant let the prices Of
L things 20 up and keep the
wage Of labor even. On the
other hand. YOU can't constantly
increase the wage of labor and
keep the price of the articles
produced by labor down. If that
vicious circle isn't cut il will
result in unending strikes and
shortages.
II this situation is'not handled
II is going TO cost this country
more than the war effort itself
billions Of dollars 4 year-20.
80. 40 or even 80 billions a year.
II Will mean at the best. explo-
sive initiation and intolerahle
lff1sdefae Of faxaff9ra ~, tho haTxc