Evening star., 1942-10-04
Roosevelt StobiIizes Wages,
Farm Prices, Profits, Rents,
With Byrnes as Economic Car
Food Costs Frozen
At Highest Level
Of Sept. 28 to Oct. 2
BY GARNETT d. HORNER.

unprecedented power over
most American earnings and
living costs was consolidated un-
der Supreme Court Justice
James F. Byrnes yesterday amid
a series of swift and drastic new
moves ordered by President
Roosevelt to curb imitation.
Developments included:
/. The President issued an exc
cutive order for immediate stabiliza-
ton of wages, salaries, farm prices,
profits and all rents.
2. Mr.. Byrnes resigned from the
Supreme Court to become Director
of Economic Sterilization with
sweeping policy making authority to
prevent "avoidable increases in the
cost of living"
Food Prices Frozen.
3. Most previously uncontrolled
food prices were frozen for the next
60 days at the highest levels reached
between September % and October 2.
Price Administrator Henderson,
who will operate from now on under
policy directives of Director Byrnes,
fixed the temporary new food price
ceilings at the request of the Presl-
dent and announced that he would
act within a few days to bring
every urban and rural dwelling in
the country under rent control.
Mr.. Byrnes. made a virtual
economic car for the Nation under
terms of the Presidents order
setting up his Office, was directed to
develop "a comprehensive national
economic policy, relating to the con-
troll of civilian purchasing power,
prices, rents, wages, salaries, profits,
rationlng, subsidies, and all related
matters
Wage Levels Pegged.
In brief, except for some discre-
tionary qualifications, here is what
the President ordered be done about
the various factors entering into
the cost Of living:
Wages-No increases from Sep
tember Is rates and no decreases
from the highest wages paid for
particular work between January
and September Is.
Salaries-No increases for those
now getting more than IS 900 year
except on promotion to more diff
cult or responsible work. No salary
to exceed $25 1000 year after pay
ment of taxes, insurance premiums
and fixed debts already incurred.
PricesAll prices of farm products
and commodities made from them
to be stabilized so far as practi-
cable at September Is levels.
Profits to be Controlled.
Profits-Unreason or exhorbi-
tant profits to be prevented through
price ceilings.
Rents-No increases in urban Of
rural dwelling rentals anywhere il
the country, with whatever reduc-
tions may be deemed appropriate.
All Government departments ane
agencies concerned were ordered by
the President to follow policy direc.
tives of Mr.. Byrnes in carrying ou'
the anti-inf1ation program. with ac'
tual administration of the variou!
activities left with those agencie!
now handling them.
Director Byrnes was authorized tt
call on any Federal agency and tt
use all the powers of the Govern
ment to enforce his policies
President Acts Swiftly.
For enforcement of wage ant
salary regulations, he may orde
any payments made in contraven
ton thereof" to be disregarded il
calculating an employers costs TO
income tax deductions, price ceiling
bases or for cost-plus Government
contracts.
The Presidents swift action yes
terday followed less than "a hour
after he signed Friday night tn,
new act passed by Congress to NEE
his request for additional authorit,
over farm prices.
Congress has done its part il
helping substantially to stabilize tn
cost Of living" Mr.. Roosevelt sale
He added that he is certain his re
sulting action will assist greatly il
bringing the war to successfu
conclusion, will make the transitio
to peace conditions easier after tn
war, and will receive the whole
hearted approval Of farmers, work
(See INITIATION, Page A-4.)