Evening star., 1941-09-26
Priorities Head
Asks Price Curb
Law at Once
Only Alternative
To Destructive
Initiation, He Asserts
BY the Associated Press.

Donald M. Nelson, Federal direc-
tor of priorities, told Congress today
that the administration price-con-
troll bill should be enacted at once
to prevent "an inflationary period
that will completely destroy u.s."
The executive director of the Sup
ply Priorities and ALLEGATIONS Board
told the House Banking Committee
that he knew of no other method Of
solving some of the problems Gre
ated by the defense program.
For that reason, he said, the pend
ing price control measure should be
enacted 'as rapidly as possible"
IF we are properly to handle a
defense program of the size of ours
and avoid an inf1ationary period that
will completely destroy U.S." he said
I'VE must have some form of price
control"
"Too Late" for Universal Ceiling.
Before the hearing Mr.. Nelson
told newsmen he thought it was too
late for adoption of the universal
price ceiling proposed by Bernard
M. Baruch, World War head Of the
War Industries Board.
If we could have put such a plan
into operation say about March /,
before the sharp increase started. ]
would have been in favor of it." Mr.
Nelson said. But l don't think the
public would have stood for it then,
and you have to be guided by what
is practically possible"
In response to questions, Mr.. Nell
son said he was opposed to control
ling wages by legislation because
you can't have concentration camps
In this country for violators."
He said he was opposed to Secre-
tary of the Treasury Morgenthaus
proposal for 100 per cent taxation of
corporations profits in excess of 6
per cent, explaining he thought that
the profit system had to have an
incentive to make it work.
Favors Farm Price Ceiling.
AS to farm prices, Mr.. Nelson
said he thought there should be a
ceiling over them. but added he did
not know just where it should be
Chairman Steegall asked Mr.. Nell
son about complaints that some
small factories had not received
much defense business.
1T would be a national disaster
II IN building the defense program
we destroy small business" Mr.. Nell
son said Small business has been
hurt more than it should have been
There has not been enough con-
sideration of the small and medium
sized manufacturers in placing con-
tracts. am sure that the problem
is going to be solved. 1t must be
solved"
Mr.. Nelson expressed the opinion
that defense program administrators
would have to go to a definite
system of allocations instead of
preference ratings"
Study Under Way.
Such change is under study, Mr.
Nelson said, adding: I'VE don't
know all the answers. but we're 60
ing to know them just as quickly as
possible"
He estimated that possibly 80 per
cent of the Nations business firms
would not be able to participate di-
rectly in the defense program. but
emphasized that he did not mean
that they would all be forced out of
business, because most of them were
engaged in production of items es-
sential to the public.
Asserting he wanted everything
possible done to insure perfection
of the free enterprise system and a
return to it as soon as possible after
the emergency, Mr.. Nelson advised,
however, against removal of the
proposed control too soon.
He Endorsed the idea of negotiat-
ing voluntary agreements with labor
groups against seeking wage in
creases once the price control law
is enacted.