The Waterbury Democrat., 1941-02-21

big idea of it is that in this mans war we shah have no profiteering.
 It is Leon Henderson's job to see that we don't have these war prof1teers, and if he cannot get results one way, he'll try another. The President has the power to fix prices during the emergency and if that doesn't work, the gov ernment may go into direct com- petition with industry, to force prices down.
 SWEET PERSUASION
 GOT LUMBERMEN
 The gentle art of sweet persua- sion is the first device in this ef- fort. That was used recently when the prices of lumber began to get out of line. The lumbermen were called in, as soon as prices began to rise under the heavy demand fol camp construction and defense housing A ceiling was suggested fol prices on various grades of lumber The prices came down and no fur ther action was necessary.
 The machine tool case wasn't so simple. Quite early in this excitement, machine tools became public bottleneck No l. Demand did a standing high jump over the moon of supply, and certain dish-faced dealers in secondhand machine tools ran away with the spoon full of the gravy of war time profits. Any crossroads ma- chine shop with an old lathe or drill press was subject to raids Bought for a song, these machine tools were carted to manufactur- ing centers where there was most active demand, and sold for profits of 100 and 200 per cent. In some cases, secondhand machine tools sold for more than new equipment because the old stuff could be de- hvered immediately.
 FIRST OF
 A SERIES ."
 The industry was in this shape when the gov'ment, in the form of Commissioner Henderson's outfit stepped into the picture. Second hand machine tool dealers who were worst offenders were called to Washington to explain. There were some pretty stormy sessions. Manu- lecturers of new equipment were consulted to get a fair base for prices. But when the spectators couldn't get together and agree on what top prices should be, Price Schedule No. l." resulted.
 The scale of prices in this in- stance is unimportant, except to the trade Machines less than five years old, rebuild and guaranteed can't be sold for more than 95 per cent of present list prices for similar equipment. Machines over 20 years old, not guaranteed, can't be sold for more than 50 per cent of present prices. In between Is varying scale.
 Whats important here, again, is that the principle of government price fixing has been established Commissioner Henderson's an- nouncement states clearly that "this is the first of a series of price schedules" Prices on zinc and copper are now being investi- gated. There are reports that secondhand zinc has been sold for more than new metal, to get immediate delivery. That's to be stopped.
 ALSO SUGAR,
 SPICE, ETC?
 There are now no very severe penalties for noncompliance. Deal CTS must report stocks. Buying or selling for more than the schedule can be reported to the price stabiliz- ation division, but all the division can do is (a) call it to the attention of Congress and the public and (b) fully exert the powers of the gov ernment to protect the public in- terest and maintain fair prices.
 But the principle of the thing is here put into practice and the profiteers sacred liberty to charge as much as he can get is about to be taken away. If government price schedules can be established for machine tools, they can be put over for sugar and spices ano everything nice.