Detroit evening times. (Detroit, Mich) 1921-1958, 1942-04-24
Capital Abuu
At Roosevelt
Initiation Curb
Plans TO Freeze Prices
First, Then Halt Raises
BY PAUL MALL0N

tive term Tor our current eco
nomic predicament, he really
had a new conception of a
remedy. If not of the problem.
He would freeze prices first,
all prices. Then instead of try
ing to freeze union wages 10
that index he would tie them
10 a cost of living index, but not
directly, only loosely, through
the War Labor Board.
In other words, he would
merely order the War Labor
Board not to grant any more
increases in cases brought be-
fore IL, unless the cost OF living
index rises.
The administration figures
this would prevent any union
wage increase cases from ever
getting TO the board. as long
as the cost of living remains
the same as the base period, be-
tween February % and March
rs.
Other salaries would not be
fixed but the argument for in
creasing them generally would
be frozen by the action on the
cost of living.
The cost Of living index, OF
course. is based on the prices
of rent, light. bread, food, CLOTH
ing and some other items, and
not upon the general price level
which may or may not fluctuate
the same.
harm prices would likewise
l. be handled on this tie-freeze
basis. without direct action, by
the initial step of freezing the
price a baker can charge for his
bread or a butcher for pork
chops. etc.
1t is figured that the limita-
ton on bread will be an auto
matte restraint on the price OF
wheat and the freezing Of pork
chops will hold corn-hog prices,
etc. on through the farm COM
modify list.
The political advantages of all
this primary part of the plan.
from the administration stand
point. lie in the fact that it is
not proposed actually to freeze
wages or farm prices themselves,
but to get at them indirectly.
There are other political
aspects. In the discussion stage
is an idea of confiscating all big
wages above certain amount,
say SIS, 900 or $4,000. II would
not bring in much revenue, but
il would be popular with the
labor and farm groups.
A MOTHER feature OF the plan
"A would confiscate all profits
above six per cent beyond all
existing and proposed business
taxes, but this has once been
turned down in Congress.
The whole plan is subject. Of
course, to congressional APP
proval.
Another thing: II seems now
that when price fiXer Leon Hen
derson and Vice President Wal
lace surrendered TO Treasury
Secretary Morgenthau. there
was an understanding that the
voluntary method of raising
money for the war would be
continued beyond a few months
only if it works, that is. only for
a trial period.
Henderson and Wallace APP
parently were content to wait.
Morgenthau intends TO fool them
by making il work.
WILLKIE ran away with the
w publicity honors of the COM
promise adopted by the Repub-
lican national committee at
c hic ago, but the opposition
claimed a m a GRITTY of the
committee.
The S G n at e cloakroom is
comforting itself with the in
formation that Mr.. Willkie had
only Is committeeman at an adj
vance meeting in New York. He
had more than that bare one
sixth of the 90 committeeman at
Chicago, but the Washington
boys think Taft would have won
on showdown by about SIS to
35.
Where Willkie stole the show
was not in the voting. but in the
advance planning. He pulled no
surprise on the senators. Before
the meeting word came down
here of what he intended.
But ii was just not good pa
triotiSm. politics or sense from
either his standpoint or theirs to
start a row, as Willkie well
knew. Thus he had his oppo-
nents in position where they
we're willing to give more than
he did in resolution pledging
only postwar leadership of the
world for the purposes of liberty
and opposition TO warfare.
In this conflict. both Willkie
and Taft were running like lead
horses for 1914. and this was the
most important aspect of the
matter.
The resolution was written for
the purpose of the coming con-
gressional elections in which
each individual candidate will
run on his own platform any
way. The 1914 presidential
nominating convention will de-