Evening star., 1942-09-05
Roosevelt Ready
To Limit Wages,
Farm Prices
Decree Nomine 'Czor'
Expected in Speech
On Labor Doy
Ey the Associated Press.

A drastic presidential order
limiting all wages, salaries and
farm prices was in store for the
Nation today in an unprece-
dented move, Government off,
cials revealed, to thwart a
threatened runaway rise in the
cost of living.
Responsible sources who cannot
be quoted by name said the decree,
as drafted by President Roosevelt
for issuance on Labor Day; calls for
creation of an economic admins
traitor to carry out these policies and
others designed to halt rising war
time living costs.
In effect, the Presidents edict Is
scheduled to tighten the purse
strings of every American against
luxury or unnecessary spending, but
open them wide to payments Of
debts and more taxes, and to greater
War bond purchases.
Even Mr.. Roosevelt's advisers who
aided in preparing the message re-
garded it as almost revolutionary.
An act of Congress virtually will be
set aside by the farm price section
Of the order which affects a pro-
vision Of the Price Control Act spe-
cifically forbidding any price CELL
ings on farm products at less than
Ito per cent Of parity.
War Powers Held Enough.
The President win say his war
time powers and duties are SUM-
cient authority for the order. AL
ready mentioned as possibilities for
the post of economic administrator
were Gov. Herbert H. Lehman of
New York, Wendell Willkie and
| Bernard M. Baruch.
AS outlined by Government offi-
cials, the Presidents action Is
scheduled to do these things:
Wages-In the case of work paid
| for at an hourly rate, or other per-
sonal compensation of less than SIS
| per week, the President is expected
to order that no wage rates be in
creased above their January /, 1941,
level by more than the rise in the
cost of living since then, which Is
roughly Is per cent. In the case Of
persons working by the hour, this
will not affect increased pay result
ing from working more hours per
week
Salaries between $75 per week and
$500 per year-a last-minute de-
cision is yet to be made whether
these will be frozen at existing
| levels or permitted to increase by
the cost-of-living formula applied
to wages.
Salaries over $7,500-No increases.
| Farm prices-To be frozen at
existing levels for the time being,
subject to probable revision later
in the case of some products. Ger
tain of the revisions, 1t was said,
would be downward.
/ Chief to Handle Details.
| Many details will be left to the
administrator, including probably
such questions as pay raises accom-
panying bona flde promotions.
In some cases, enforcement will
be indirect. Income tax laws will
be used particularly to back the
Presidents statement OF what en-
ployers should do about wages. BY
refusing employers the usual "busi-
ness expense" deductions for un-
authorized wage increases, which
would automatically increase the
taxes of the employers, officials be-
l1eve the Government can make Y
too expensive to evade the wage pol
Icy. Most employers, as a matter
Of normal economy, probably would
abide by the order voluntarily.
While the order Is not expected to
affect directly other cost-of- Living
angles, it is anticipated Mr.. Roose-
velt's message to Congress and his
radio address to the public Monday
night will stress the necessity Of
more taxes, more War bond pur-
chases, more ratloning, prompt pay
ment OF debts and avoidance of
boarding.
AS for an executive dismissal of
legislation bolstering farm prices, it
was expected that Mr.. Roosevelt
would count on forestalling farm
nloc protests by answering some OF
the objections in his message.
Won't Ask Legislation.
The President has indicated his
message will not constitute a re.
quest for any legislation, and con-
sequently, it was expected he will
express his belief of the necessity
for stabilizing farm prices at pres
ent levels.
When the President advised Con-
gress in 1910 of the trading of SO
destroyers to Great Britain in ex-
change for outlying air and naval
bases, it was recalled that his an
nouncement also was accompanied
by an opinion Of former Attorney
General Jackson, now a Supreme
Court justice, affirming his author.
ity for the act. The message con-
stituted report and an explana-
tion to the legislators. There was
no request for congressional action.
In the preparation of his anti
imitation program the President
was known to have conferred with
Attorney General Biddle and other
Justice Department officials.