Evening star., 1941-10-06


took the position TO-DAY that there
was no necessity for Federal con-
troll of wages, but that some kind
of price control legislation appar-
emily was Immediately necessary"
Ralph HetZel, jr, head of the
Economic Division of the G. I. o.
read a statement of Mr.. Murray's
views to the House Banking Com
mittee. Mr.. Murray, who is re-
cuperating from long illness, sent
word that his doctors would not let
him appear.
The c. I. o. head contended that
wage increases were not responsible
for current price increases. adding
that this argument was being used
as new touchstone to justify attack
on organized labor by those who
have always sought labors destruc-
ton"
Price control legislation pending
before the committee contains no
wage-fixing provisions, but number
of witnesses have argued that infla-
ton should not be controlled with
out control of inflationsry wages.
Meanwhile, an about price con-
troll measure which would impose
ceilings on virtually everything from
wages to defense profits and agricul-
tural products was offered to Con-
gress by Representative Gore, Demo-
crat, of Tennessee, prominent young
member of the Banking Committee
| Mr. Murray said that higher wages
mean a higher standard of living
for working people, higher prices on
the other hanc may mean no such
thing. They may mean imitation,
or monopoly. Oh boarding, or prof
iteering. A ceiling on wages means
ceiling on mans standard of
living A ceiling or wages in pc
riod of rising prices means the low
ering of the level of living of Ameri-
cans"
Under questioning, Mr. Hetzel
said he feared that unless prices
were stabilized there will be a Sc
rious movement for increased
wages" He said many wage earn
ers who recently had received 10 per
cent increases we're complaining to
the C. I. o. that increased living
costs had already Offset the in
creases.
"Enslavement" Held Possible.
Wage control, Mr. MUfE Sglu|
would lead inevitably to Govern
fnent control over all labor and all
industry" and could lead to EN-
.fay sabor" is tn dhye5nn1k n
had to forbid workers transferring
from jobs in one industry to jobs in
more desirable industries.
Mr.. Gore, in offering his own
measure. used the opportunity to
condemn the administration bill as
! weakened and piece-meal legis-
| lation."
The proceedings, under the Gore
proposal would follow generally the
prices in effect during the current
week-the october 6-l2 period being
recommended as the base period.
Under legislation indorsed by Leon
Henderson, administrator of the Of
flee of Price Administration, the
fixing of ceilings would be left to
the administrator discretion and
would not cover either wages or
profits from defense contracts.
Mr.. Gore drafted his bill after
frequent conferences with econ
omists. He sought advice from time
to time from Bernard M. Baruch,
presidential adviser and chairman
of the War Industries Board dur
ing the World War.
The catastrophe of imitation
Mr.. Gore declared, cannot be avert
ed by half-hearted, piece-meal
methods, or the 'business-as-usual
niceties of political pussy-footing,
and added "the Henderson bill is
weakened, piecemeal legislation
which will not stop imitation"
Saying it was necessary for the
Government to fight imitation bold
ly and effectively on all major
fronts" he said he proposed IAN all
out effort to preserve our American
economy and save our people from
another cycle in which democracy
would face grave internal danger.
Mr.. Cores bill would:
Create the Office of Emergency
Imitation Control to be administered
by one administrator appointed by
the President and confirmed by the
Senate.
Fix ceiling on all rents for dwell.
ing places in municipalities of 10,00t
or more population at the rent rate
in effect this week.
Fix ceiling on the sale at whole.
sale of all commodities at whole
sale prices in effect this week with
the provision that no ceiling woult
be applicable to any agriculture
commodity at price below parity.
Fixes Top on Wages
; Establish a ceiling on all salaries
; wages and commissions as of thi
, week. 1t would be unlawful for an,
employer, except those employing
, fewer than eight people, to pay ,
salary, wage or commission in exces
of the ceiling. The exception Il
made that no ceiling shall apply :,
, compensation which is below tn,
, requirements of Federal or Stat
} minimum wage laws.
, Provide that all profit in exces
of per cent of the cost of perform
! ing a national defense contrac
. would automatically revert to tn
Government.
Under the bill the administrato
5 would have broad discretionar
/, powers to adjust ceilings up or dow
! where findings of fact warranted
and to exempt from ceilings an
items the control of which he find
it is not necessary.
This would eliminate inconse
quential articles such as hair PIN
etc." Mr.. Gore explained.
THE administrator would b
}. authorized to prescribe ceilings o
a fees, margins, ETC., including reta
t margins.