Evening star., 1942-01-03
Senate Debate Slated
Next Week on 5tronq
Price Control Bill
Single Administrator and
Licensing System Given
Committee Approval
BY J. A. OLEARY.


the Banking Committee late yester-
day, vesting broad powers in single
administrator, with licensing Sys-
tenn to back up his orders.
When the bill was before the
House five weeks ago, peace still
prevailed in the Pacific and the
war in Europe seemed far away. In
that atmosphere. the House rejected
the licensing system and voted for a
board of review to pass on the rul-
ings of Price Administrator Leon
Henderson.
Spurred on by the rapid chain OF
events since the attack on Pearl
Harbor. the Senate Banking Com
mittee rewrote the measure along
the general lines favored originally
by the administration.
While tightening up the Govern
nents authority to regulate prices,
the Senate Committee, like the
House, steered away from control
Of wages on the ground that price
control is, in itself, an effective wage
control and on the argument that
it would be impractical to attempt
wage regulation through a price
administration.
Could Shift Authority.
In the closing hours of committee
action, a farm bloc move developed
to give Secretary of Agriculture
Wickard jurisdiction over farm
prices. The committee left the au-
thority with the price administrator,
but wrote in an amendment under
which the President could, If he
deemed it advisable, transfer parts
of the price control problem to other
governmental agencies.
Both the Senate and House ver-
sions follow what is called selectlve
price control. This means there Is
no general freezing of price levels,
but selection by the administrator OF
commodities as he finds regulation
necessary to head off soaring prices.
Discretion also is left in the ad-
ministrator to determine when
licensing is deemed necessary to OBJ
tain compliance. Two general meth
ods of licensing would be possible.
One system would be to license all
outlets for any specific commodity
to which a definite ceiling has been
applied. The other would be to place
a general limit on the percentage
of mark-up a retail storekeeper
could make tn the prices he pays
for his stock.
In explaining safeguards, he said
the committee has placed around
the licensing authority, Senator
Brown. Democrat, of Michigan
pointed out that if license is or
dered for any commodity, it would
have to be issued automatically to
all outlets for that commodity. For
a first offense, the administrator,
he said, would be required to issue
a warning. If the violation was re-
peated, the matter would be SUBJ
mitted to the courts for determina-
ton. II the license was for spe-
cific commodity, revocation would
deprive the dealer only of the right
TO sell that commodity for one year.
Taft Proposal Rejected.
Although the Senate committee
decided against any statutory regu-
lation of wages, it wrote in as
general declaration of policy that
all Government agencies should
strive toward stabilization of prices
land the cost Of production This
provision, however, calls for no spe-
cific action to bring about wage con-
troll.
After striking out the House pro-
vision for board of review to pass
on the administrators orders, the
Senate committee also rejected the
motion of Senator Taft, Republican,
of Ohio for creation of a f1ve-man
board. with the administrator as
chairman.
A motion by Senator Bankhead.
Democrat, of Alabama to give the
Secretary of Agriculture control over
farm prices also was beaten. Secre-
tary Wickard had appeared earlier
yesterday before a subcommittee of
the Banking Committee and cues
toned the wisdom of separating the
responsibility for stimulating farm
production from control of farm
prices. Stressing the Importance of
food in winning the war, he argued
that price management should be
synchronized with the production
effort.
In fixing price ceilings generally,
the administrator is directed to
consider the price level between Oc-
tober / and Is of 1941, unless that
is found to have been an abnormal
period for any particular commodity,
in which case he is to consider the
nearest normal tWo-Week period.
ITO of Parity is Minimum.
In the case of farm commodities.
however, the bill carries a special
provision prohibiting the fixing of
any ceiling lower than 11O per cent
of parity, or the price as of October
l, 1941. Senators who opposed
transferring farm price control to
the Agriculture Department argued
this provision would prevent the
price administrator from fixing CELL
ings that might discourage produc-
ton. They pointed out that only
few commodities are now up to the
parity level.
The Senate committee also broad
ened the House provision allowing
the price administrator to buy and
sell commodities as a means of con-
trolling the price level. Under the
Senate bill, such purchases and sales
could be made outside as well as
within continental United States.
Mr.. Henderson, who is now head
of the Office of Price Administration
set up by executive order. is gen.
orally expected to be designated to
carry out the wider powers contained
in the pending legislation.
The Senate bill contains an
amendment designed to encourage
industry to enter into voluntary
price agreements with the admin
istrator, by making it clear the anti
trust laws would not apply to such
agreements. Senator Brown said
that IL, tho 1oct u,ar on nor oopt of