Evening star., 1942-07-12
Fund Cuts Kill
Price Control,
Says Henderson
Farm Federation
Accused of Drive
To Doom Ceilings
BY JAMES Y. NEWTON.

OTA dppIOpIldtlOU Dill Dy JQe
Senate Appropriations Commit
tee restricting the agency's op-
Grating funds would destroy it's
program for controlling prices
and fighting imitation, Price Ad-
ministrator Henderson said last
night in a sharply worded state
ment.
Mr.. Henderson accused the Amer
lean Farm Bureau Federation of
sponsoring "co-ordinated pro-
gram" to destroy effective price
control not only on farm COM
modities "but on all things made
from farm products
The committee amendment, which
the OPA head held would give
Secretary of Agriculture Wickard
virtual veto power over price CELL
ings set by OPA upon processed and
finished agricultural products, Mr..
Henderson said, was proposed and
drafted" by the federation. If it
becomes law, he added, it will be
necessary to repeal Immediately the
general maximum price regulation,
which fixes ceiling prices for most
things people eat, wear and use.
Fund Set at 12O Million.
OPA's budget for the year was
set by the committee at $120, 600, 900,
about $41 ,000,00 under the figure
approved by the Budget Bureau and
$50, ,O00, 900 under what Mr.. Hender-
son later said he could skim by" on.
This reduction could be met, the
administrator said, by eliminating
96 planned district Offices, by cutting
out eight expected rationing pro-
grams, by eliminating rent control
in 100 of the already-announced
areas (affecting a quarter of the
country's population, by eliminat-
ing $4,000 clerks needed for local
rationing boards and by complete
change in compliance and enforce
ment plans.
Mr.. Henderson said he believed
1t would be necessary to return to
Congress later for additional funds
even though we shall 60 to the
limit Of our administrative in
genuity in attempting to work under
the limitations of the appropria-
tion" He said he would intensity
efforts to administer rent, rationing
and price control within any ap-
preparation allotted by Congress,
but that he felt "a deep sense OF
personal failure in that I did not
convince the Congress that inf1a-
ton can run like wild fire here and
now, and that my estimates of ad-
ministrative needs were moderate. +"
Sees Policy Abandonment.
The price administrator held his
sharpest criticism for the series of
restrictions the Senate committee
placed on use Of the proposed ap-
preparation. He said these would
require reversal in actions alreadS
taken so broad as to constitute
abandonment of policies already
written into the price control act
itself"
The committee amendment which
requires Senate approval of all OPA
employees earning in excess of 81 500
including those now on the payroll
also would cripple the agency, Mr.
Henderson said, and, in some in
stances, would inject politics into
the administration of price, rent
and rationing control. He added
that OPA should not be singled
out for 'such treatment" anc
pointed out that no such restric-
ton had been placed on the Wa,
Production Board.
That part Of the bill which states
that no portion of the appropria-
tion may be used as a subsidy was
interpreted by Mr.. Henderson tc
mean congressional disapproval OF
subsidy programs already under
way. He used this to stab back
at the congressional farm bloc
pointing out the price control act
specifically authorized use of sub
sides to keep down living costs.
Predicts Price Advances.
If Congress disapproves subsidies
Mr.. Henderson continued, it may be
necessary to raise the price o1
sugar, advance the price of Goa
In New York and New England
where excess costs of wartime ship.
ping are being absorbed by the
Government, and increase the price
OF fertilizer to the farmer by g
large margin, where the Govern.
ment is also absorbing higher cost!
OF ocean freight movement"
Referring to the appropriation re-
striction which would empower Sec
retary Wickard to review ceilings or
prices of processed and finished ag.
ricultural products, Mr.. Henderson
said it might force him "to remov,
the ceiling over the prices of al
food and most clothing and on 6
great many industrial and military
| (See PRICES, Page A-8)