Detroit evening times. (Detroit, Mich) 1921-1958, 1941-09-10
Price-ControI
Legislation
Chance Dim
Peril Of Runaway Costs
Worse Than Hitler
BY HUGH s. JOHNSON

aSnlngIOn, the prospects
of any price-control legislation
are DINNER than before -and
that was DINNER than light
ming bug at 60 rods.
This could spell catastrophe
because price control is the only
insurance against runaway in
flation and that kind of price
skyrocketing could be as dan
gerous as anything Hitler ever
dreamed of inflicting on our
American system.
World War price control was
never fully effective. but the
evidence is clear that it did stop
and greatly reduce threatened
destructive initiation of prices.
II wasn't done under any
specific statutory authority for
price fixing. 1t was made pos
sible by three other presidential
powers in totally different fields.
They were the power 10 grant
priorities in supplies of materials,
transportation and power, the
power TO commanders plants and
the power 10 requisition supplies,
IF INDUSTRIES or individuals
i insisted on charging higher
prices than the government
thought fair, they ran a risk OF
either being denied materials.
power and transportation, with
out which they could not live,
or having their factories or in
ventories commandeered Wit h
the question Of just compensa-
ton left 10 the which.
everybody KNEW. -Mere-net
likely 10 look with favor on
profiteering prices.
II was indirect authority. II
was later questioned in federal
circuit court but il worked.
The reasons why il worked
shouldn't be presented with too
much simplification. They were
many, but in addition 10 those
named. were two other, OF utmost
Importance.
One was that Mr.. Hoover, in
charge of some principal farm
prices and acting on statutory
authority not TO put a ceiling
over any farm price, but,
strangely enough, 10 guarantee a
minimum farm price. was able
TO use that authority without
too much agricultural complaint
TO stabilize farm prices and make
the authorized minimum the
actual maximum.
THE other reason was the atil-
i tude of labor and industry,
which under the leadership OF
Samuel Gompers very early
issued this statement;
Neither employers nor en-
ployes shall take advantage OF
the country's necessities TO
change existing standards"
AS an indication of that spirit
was the speech, at crisis. of
John Donlin. then president OF
the Building Trades (AFL). once
quoted by B. NJ. Baruch AS the
most eloquent, Of the war"
This thing Is very simple. II
am going home with my
weeks pay In my pocket and n
guy steps up and tried Ia get ID
away from me. / am n fool II
keep my left hand on my wad
and try to beat him off with my
right.
III I do that the chances arc
that he will get me and the wad
If 1 take my left hand off the
wad and go after him with both
hands, I'll save the wad and get
him. too. Now Mr.. Chairman
that's the case here. This Ger
man guy (the Kaiser) Is just
around the corner. II we keep
one hand on our wadS. he'll get
us and our wsds, too. II we use
both our hands Wen save the
wads and get him, too"
WELL, instead of following
w that model, in not asking
too much authority. in manag
ing 10 control both farm anc
labor prices. this administration
is seeking in its bill TO control
not all but few prices and moi
TO control farm and labor prices
al all effectively.
1t can't be done. Each price is
a component of all prices anc
farm and labor prices are tho
principal components. We cant
control some without bankrupt
ing others.
On top OF which. Mr.. Leor
| Hen erSon, unnecessarily,
think. on his part, unjuStly,
think, on the part Of his critics
has gotten in so bad with Con.
greSs that he apparently couldn'i
get a price control bill through
that preserved him in the pic
ture.
II is very unfortunate. 1t may
be our fatal blunder in this war
AS Henderson is reported &c
have said:
"My God, why can't we learn
some lessons from the last war;
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