Evening star., 1941-05-31
Price-Fixing Power
And Crop Loans Draw
Fire in Congress
Brood Investigation
Of Pority Farm Rates
Demanded in Senate
~ the Associated Press.

~ the Associated Press.
A double headed dispute involving
millions of dollars for farmers, the
public and the Government gath
cred momentum today on the Senate
side of the Capitol.
One clash involved the admins
tration's powers to fix price CELL
tngs" on farm products, metals or
anything else involved in the huge
national defense drive. Senator
Taft, Republican, of Ohio contended
that President Roosevelt had abso-
lutely no authority to do this.
''If the President can fix prices,
he can fix wages and salaries and
do anything else he wants to-" SEN
ator Taft said.
The second controversy centered
about the price boosting farm loan
bill recently signeL by President
Roosevelt. Here Senator Thomas,
Democrat, of Oklahoma claimed
that Congress ordered Government
loans at "85 per cent of parity with
out ever determining what parity
should be by law"
Broad Inquiry Asked.
The Oklahoma Senator has asked
that the Senate Agriculture Com
mittee hold a broad investigation of
parity prices for farm products and
then write the resulting formula into
law.
This request, obviously involving
millions of dollars in crop values,
precipitated both disputes when
Leon Henderson, head of the Office
of Price Administration and Civilian
Supply, defended his right to fix
price maximums. Mr.. Henderson
appeared before the Agriculture
Committee Thursday.
The price administrator testified
that President Roosevelt was exer-
cising the same price fixing powers
used during the last war by Presi-
dent Wilson and added that the
Government expected to act when
any price gets out of line
Chairman Smith, who clashed
frequently with Mr.. Henderson over
powers to fix prices without express
authority from Congress, predicted
that the Agriculture Committee
would approve the Thomas resolu-
ton for an investigation of farm
parity price levels.
This man Henderson apparently
thinks that an executive order is
law" Senator Smith said.
Authority Disputed.
Senator Taft said administration
leaders were claiming authority to
fix prices under the unlimited emer-
gency proclaimed by the President,
"but there is nothing in the Con-
stitution or the statutes to support
them. They claim, too. that such
powers were exercised during the
last war. In the first place, we are
not at war and. in the second place.
the price-fixing arrangement then
was not so stringent as this. Then.
1t was done by agreement of the
manufacturers themselves.
Although Congress has been de-
batting parity prices and income"
for farmers for years, Senator
Thomas insisted that the lawmakers
had neglected to determine just
what parity was.
In the past these price levels have
been determined by economists at
the Agriculture Department and
their figures were used recently
when Congress approved legislation
intended to give farmers millions of
additional dollars by mandatory
loans on major crops at IS per cent
OF parity.
Parity generally has been re-
garded as price for a farm prod
uct that would give it relatively the |
same purchasing power it had in the |
pre-war years of 1909-1914. This |
provision, in somewhat complicated /
language, was included in numerous
farm acts effective now.
Higher Rate Suggested.
Under it the parity prices for
cotton was about 16 cents a pound, |
for wheat about S1.15 bushel. and
corn about IS cents bushel. Sena-
tor Thomas protested that these
were too low and suggested instead |
q parity price of 25 cents for cot
ton, 81 so bushel for wheat, and 81 !
q bushel for corn.
Mr.. Henderson assured Senators
that he was sympathetic with all
efforts to improve farm income and
had no intention of trying to oppose
ordered by Congress in
farm legislation. He insisted that
recent schedules fixing price ceilings
for combed cotton yarn and hides
had not injured farmers.
The price administrator said |
heavy Army demands for clothing.
underwear, socks and shoes had |
caused speculative increases in
yarns and hides and that prices
fixed would permit fair return to