Evening star., 1942-07-02
Henderson Asks
Restoration Of
0PA Budget
Will Request Senate
To Vote IS Million
Refused by House
BY the Associated Press.

Price Administrator Hender-
son stocked his vest pocket with
cigars today and prepared to
head for the Capitol to ask the
Senate for the extra $36, 1000, 900
the House refused him-the diff
ference, he said, between ration
ing and anarchy In distribution.
The session of the Senate Appro-
priations Subcommittee considering
the supply bill which carries this
fiscal years funds for the Once of
Price Administration was private
but Mr.. Henderson made his case
public in advance with a statement
that price. rent and rationing con-
trolls are all placed in jeopardy" by
the s75 100000 budget which was all
the House would give him.
Mr.. Henderson sought S161 900 900
for operations through next June
and said that this estimate was
built on careful first-hand estimates
of the requirements of the office"
Unless the full amount Is forthcon-
ing, he said, the OPA may have to
cancel rent control in 1872 Of the
367 projected areas and curtail other
functions.
Staff Already Overworked.
The staff SIS already overworked,.
he added, but even existing per.
sonnel would have to be reduced.
There Is an inadequate staff to
administer the universal price cell
ing, he continued, and none at all
to administer the ceiling on con-
sumner services. Moreover the OPA
believes that it faces at least 10
additional rationing programs dur.
ing the coming II months"
Unless additional staff Is avail
able" Mr.. Henderson's statement
declared. there will be utter disor-
ganization and anarchy in the dis
tribution of scarce commodities as
supplies run OUT
Even If he succeeds in convincing
the Senate committee, however, any
increased appropriation probably
would face opposition on the Senate
floor, where members recently have
voiced bitter criticism Of the OPAs
operations, particularly the gasoline
rationing and price increase in the
East. And if the Senate boosted the
appropriation, there would be q
struggle to induce the House to re-
verse its stand.
AS he appeared for more funds,
Mr.. Henderson also spotlighted two
other disputes with Congress-the
price concessions to farmers and the
matter of subsidies to absorb losses
under price ceilings.
Fruit Prices to Rise.
He announced that he was "being
compelled to take measures that will
raise retail prices Of the 1942 pack
OF canned and dried fruits by as
much as Is per cent and possibly
more"
This represented the first depar-
ture permitted from the universal
price ceiling.
In statement to American house.
wives, Mr.. Henderson blamed the
situation on the special price con-
cessions granted by Congress to farm
| products, and on refusal of Congress
to approve subsidy program per-
mitting the Government to absorb
higher costs of fresh fruit.
This Is not satisfactory solu-
tion," his statement said. TT il
inf1ationary. 1t translates into re-
tail price increases a burden that
the Government might properly as.
sumo as a charge connected with
the war.
"And this burden OF higher prices
for canned and dried fruits viii not
be shared equally. It will fall
heaviest on large families, especially
IN the low and middle income groups,
Serious Setback to Program.
Inability to complete successfully
plan that would have prevented
an lnf1ationary increase in retail
prices OF the 1912 canned and dried
fruit pack is a serious setback in
the battle being fought by OPA to
maintain stability in the cost OF
living.
I'VE cannot afford any more such
fOooco IL we are 10 prevent nome
front disaster that will Importantly
impair the prosecution of the war;
The Office of Price Administra-
ton will go to work Immediately
preparing a price formula which
will pass on to the public the higher
costs of canning and drying the
1912 fruit crop, Mr.. Henderson said,
He warned retailers, however.
against boosting prices now charged.
Stocks now on the shelves were all
packed last season and are con-
trolled by the March, 1912, price
level under the general price regu-
lation.
Present prices will prevail until
the new 1912 pack reaches retail
stores, and then the higher prices
will apply only to the 1912 items.
Among the fruits affected are
canned peaches, pears, fruit Juices,
apricots, applesauce, dried apples.
dried peaches. dried apricots, dried
pears and raisins.