Evening star., 1941-04-14

the DrOaQ powers
eing assumed David Lawrence.
on account of the defense situation,
the President has delegated to
new agency of Government the task
of policing the prices of important
commodities. The word has gone
forth that the power of publicity
will be used at the outset, but 1t IS
understood that preSSureS OF various
kinds will be applied wherever the
Government can develop punitive
tactics against citizens who disagree:
Thus does planned economy
come into being as historic in
cident to the defense program. Un-
fortunately, however, the program
has not been thoroughly canVassed
bv the Government and inevitably
politics will enter it. For the present
administration is afraid OF labor
unions and the labor vote and Will
do virtually nothing to keep down
the principal factor which is fore
ing prices upward-indiscr1mlnate
demands for wage increases based
on nc real necessity except the gen.
eral idea of getting something be-
cause the volume of business is
growing. The fact that businesses
by reason of excess profits taxes are
actually going to earn less rather
thar more net income this year is
not bothering those who keep on
demanding wage increases.
Administration Is Blamed.
The present administration, ex-
cept for a few abstract eXhortations
here and there, has refused to rec
ognize that the price spiral is to
some extent of its own making. 1t
has issued prioritieS long after over
stocking and abnormal buying has
begun and when a rationing system
should have been involved. 1t has
encouraged monopoly power in the
hands of labor groups and has re-
fused to do heretofore the essential
things necessary to keep prices down.
Thus the whole tax plan has been
clumsily applied without regard to
the price structure. In many in
stances the taxes imposed by the
Government have had to be tackled
on to selling prices. Many busi-
nesses are in the position of being
squeezed from the top by bigger
taxes on net income and from the
bottom by bigger and bigger de-
mands for wages.
If price control is to be effective
II must be applied against all groups
with uniform vigor. 1t will be in
teresting to see whether a single
step Is taken by the present admin
fstration to discourage the epidemic
of demands for wage increases which
are responsible for 80 many strike
situations. With characteristic un-
willingness to face facts, some
spokesmen OF the administration on
labor matters are shifting the issue
and blaming collective bargaining or
jurisdictional strikes or some other
circumstance, while overlooking the
general trend toward demands for
wage increases. The labor prob
lens in the coal situation, the steel
situation and the automotive situa-
ton today are all the result Of de-
mands for higher wages. For in
coal as well as in the United States
Steel and General Motors cases, re-
spectively, collective bargaining is
being duly practiced in accordance
with law.
Trouble In Another Direction.
As for the employer and manager
Of business, he is in for more
trouble on another front. If he
comes to Washington to listen to
pleas for price control and goes
back home to discuss the matter
with others in the same line Of
business, he is subject to prosecu-
ton under the Sherman anti
laws. Representatives of trade as
sociations face the same threat.
For how can there be any effective
price control unless all the producers
or manufacturers in a given line
of business act uniformly? The
moment they do they are violating
the law.
1t has been suggested that busi-
ressmen be held immune from pros
ecution, especially when the Govern
ment requests them to do some
thing for national defense. This
Is flimsy protection. Not so many
years ago, the present administra-
ton urged various oil producers to
get together to keep what was
then known as distress" oil off the
market. The oil men agreed,
thinking they were acting with the
acquie escence of Government
agency charged with responsibility
FOR handling the oil problem. They
found out later TO their sorrow in
a series of indictments filed at
Madison, Wis, which subsequently
became fines and convictions that
what one Government agency says
doesn't matter as long as the De-
partment of Justice says otherwise.
There Is no certain way to pre-
vent prosecution even when CO.
operating with the defense COM
missions here except by a statute
Of Congress which specifically
pledges suspension of the anti
trust laws for the duration of the
emergency or which delegates dis
cretionary power to some agency
70 grant certificates of immunity
when certain conditions are COM
piled with. Until this is done price
control will be impractical and
tend only to cause for confusion,
for there are too many factors
still untouched which are influential
in making prices-taxes, labor
demands, uniform action by COM
petitors and orderly rationing bv