Detroit evening times. (Detroit, Mich) 1921-1958, 1941-09-20
Price Control
Bill Held
Necessary
But 10 hnson Points
TO Some Faults
BY HUGH S. JOHNSON

BY HUGH $. JOHNSON
TT is not as spectacular as
l. some of the other hearings
and discussions in Washington
such as the tax bill with its
economy" clause or the appro-
priation of more billions for
lease-lend and national defense
but nothing is of more inn
portance to you and me. just
a couple of ordinary guys. than
the hearings before the House
banking and currency commit
tee on the price control bill.
As Mr.. B. NJ. Baruch testi-
fled, the bill is bad because il
exempts farm products up TO
10 per cent Of parity" be-
cause it eXempts wage control
altogether and above all be-
cause it does not attempt TO
control all prices and does not
tie up price control with the
other necessary war controls
priorities. communicating, con-
Servation, substitution and in
creased production.
One without all. operating to-
gether. is sure 10 fail. All the
rest, even If operating together.
without some OF the others
especially price control and pri-
critics - can't possibly do the
job.
The bill presents all these
faults. / have read every one
Of the tens Of thousands of
pages OF the testimony espe-
cially that of Mr.. Leon Hender-
son, the principal witness for
the bill. His presentation OF the
necessity for price control was
carefully documented with the
figures indicating tn c certain
approach Of initiation. the ex-
perience of this and all other
countries. in this war and the
last. and the necessity Of price
control as the only escape. The
showing was overwhelming and
so far as l can see unanSWer-
able.
CTILL Mr.. Henderson sup
~ ported the bill with all its
fatal faults. That part of his
testimony wasn't so convincing.
On the question of 10 per cent
of parity as the lowest allowable
ceiling over farm prices. there
were indications that he had
not written that part Of the bill
and he did not support il. He
simply referred the question TO
the chairman OF the committee.
Mr.. Steagall, who apparently
had inserted il.
All of his documentary evil
dence and most of his oral teS-
timony showed that you cannot
prevent initiation or have price
control without wage control.
When croSs-examined about the
consistency Of this part Of his
testimony with the bill itself,
he said that he had been as
signed by the President 10 the
subject Of prices. that Mr.. Sid
ney Hillman had been given the
subject of labor and that IL was
not up 10 him 10 invade his
associates bailiwick.
THAT Is very commendable
Il organizational loyalty but II
completely evadeS a vital ques-
tion and leaves the bill Vulnera-
bile TO deadly attack. II may
be and probably is true that the
administration Of prices and OF
wage sterilization should be in
different hands but both should
be part of the same body and
guided by a single brain. If they
don't move in step and 10 a sim
gle purpose there is no hope in
this effort.
AS TO where failure 10 act
quickly 10 control prices now
will hit the man in the street,
Mr. Baruch testified:
MANY members Of Congress.
worried over the size Of govern
ment expenditures, have been
urging economies in nondefense
expenditures. say To them
that no action could effect
greater savings In the cost Of
government than 10 prevent in
fatlon. Billions-20 per cent or
more Of all appropriations can
he saved. There Is no better
form Of economy than price
control"
He pointed out that price in
flation would hit the pocket
books of rich and poor alike
with insupportable shocks per-
hapS up TO so per cent OF income
especially unbearable 10 the
poor. 10 white collar people and
social security beneficiaTies.
I KNOW OF no answer 10 these
Il arguments. This bill simply
must be passed in acceptable
form in the interest Of us all.
Another attempt 10 delay or
hurt il is a collateral attack on
Mr.. Henderson as being unfit to
administer il. This column can
only repeat what il has said
before. After a long and init
mate experience with Mr.. Hen
derson and at least some knowl-
edge of government and what
goes on in Washington. he is. I
think. in every way fit and far
better equipped for this job than