The Waterbury Democrat., 1942-06-30
PRICE CEILINGS
 BRING WARNINGS
Henderson Tells Congress. men InfIatiOn Nears If
 Prices Are Increased
BY JAMES R sHHEPHEY

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 United Press sleR Cesrespondentl
 Washington, June 90 - tUPl = Price Admlnistrator Leon Hender- son has notified congressional iead- CTS that price ceilings cannot be held at present levels unless subsi- dization legislation Is enacted in. mediately 1t was learned today.
 He is reporter to have warned them that the fight fo avert iniia- tion through frozen price levels wilI be weakened fl the OpA is forced to alloy widespread price increases to save many businesses and industries from bankruptcy.
 He is reported to have warned them that the fight to avert infla- ton through frozen price levels will be weakened f the OPA is fogeed to allow widespread price increases to save many businesses and industries from bankruptcy.
 He fears, t was said, that if many prices, now frozen at March levels. are relaxed because of in- creasing costs Of raw materials and transportation, the entire cost of living may leap out Of control.
 Iae proposed. instead, that Ghe government assume the burden og such increased costs to prevent in- eTeaseg in consumer commodities. He pointed out that the price of gas0s line on the east coast was raised g Ia cents yesterday because Of the increased cost Of shipping oil by rail rather than by sea.
 In general, he proposes that congress authorize the Opa and the Agricultural Department to buy high cost raw materials and sell them to manufacturers and other pFoeesseFs at loss - at the governments loss 10 maintain present price levels.
 Henderson and Secretary Of AgTa- culture Claude R. WlckaTd confer red Eiih Speaker Sam RaybuFn, D.. Texas, and House Democratic Leader John w. Mccormack ef Massachusetts on the problem last week, 4 second conference has been arranged tentatively for today.
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 BendeTk0n gave congressional leaders no definite estimate of what it would east 70 lraaaignFate R sub- ridy system similar te that now 0pr eraiIng in Canada, but was reported 70 have mentioned that lt probably would approximate sthree 0T four hundred million dollars q year."
 Chairman Clarence Cannon, D. Mo, Of the house appropriations committee said hts group had not been asked to e0neldeT the sllllsiaiEv ait0n plan tll connection with the regular appropriation for the 0pA, which the committee cut more than halt, But he said the committee had heafd "the most colossal sums men, toned"
 The pressure which threatens t0 alsrnDt the present price ceilings, Henderson told Legislative leaders, results from the price control laN prohibitions against liking farm price ceilings at levels hel0W lt0 per cent 0f pafily, below 1919 70 1929 averages 0F below the levels 0f last NNHt 8FAAfAHAEW AffH4 AR ffAtk1ftftN WftH transporting commodities, notably petroleum pradneis, because ag Wags lime conditions ls an0illaF factor,
 tn the ease 0f farm products, Hem dets0p told the e0nfeTeRs the March ceilings would force mRny pFaee6s0ra Into bankruptcy heeallRe the prices they must pay the farmer eanll0t he controlled nltll the nlinlmull levels praaerlhed hy the pFlee Control Law have been reached,
 s1 s1 inset inset tits fits slialali0D, Henderson proposed that the 0pA and AgEls cultural Department he hnaneAd by congress to buy farm products at tllR levels required by the pFlee law and resell them to the pF0eesA0r at e Eliea which permits him to make q profit without an Increase in the frozen March ceilings,