Milford chronicle., 1942-08-28

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JAA4Es PREsroes
There is strong sentiment in the
Senate, at this time, against infia-
tionary conditions. Senators George,
O'Mahoney and AVanderberg de-
nounced half measures to con-
troll prices, George said that the
administrations wage policy was
making it impossible for price con-
trolls to operate. O'Mahoney wants
to meet the imitation threat head
on" Their remarks were made dur
ing debate on a bill for the Govern
ment to raise wages Of Its own
employees. Il
Some officials here are predict
ing that during the next few
months OPA price ceilings will. be
lifted here and there to adjust
prices to the higher costs which
have not been prevented. No gener-
al upping, but a multitude of spe-
cific adjustments upward i. re-
acting on others. They say that this
is imitation, slow and moderate, but
not yet a runaway.
"Ninety-five percent of war con-
tractors are doing an honest and
effective job and are receiving only
fair and reasonable profits" A
great majority are doing a magnifi-
cent Job in supplying the Navy with
its required material. That is the
summation Of the year-long inyes4
tigation by the House Naval Affairs
Committee into costs and proflteer- |
ing in the Naval expansion pro-
gram. The other per cent, ac-
cording to the Committee, appear
to be taking advantage Of the situ-
alton and to be receiving excessive
profits" The Committee consider
ed the average net profit on a ma
val contract to be reasonable. They
a statutory method of
profit limitation. Chairman Vinson
an outright statutory
limitation but the Committee said
that Congress should decide whe-
ther the limitation be by direct act,
by excess profits taxes or other
wise.
A great deal of discussion is still
heard here about the tax bill and
is effect on curbing imitation. The
Senate Finance Committee had
1een disposed to undertake sub
revision .of. the tax bill had
he Treasury come before. 1t with a
realistic. wartime program. Com
nittee leaders wanted suggestions |.
or new sources OF reVenue-some-
hing to curb imitation such as a
Iales tax, compulsory savings, per- +
laps a withholding tax. But as ex-
,ected, Secretary Morgenthau re-
terated the request he madeito the
House more from the same
Iourees-"abolition Of. special /
(joint returns, percent /
lge depletions, state and municipal |
londs). Mr.. Morgenthau did indi-
,ate that as far as corporation tax
'ates are concerned he is Interests |.
ID primarily in total revenues from
his source rather than specific
'ates. II, ,.k
Representatives Of the NationalI
OF Manufacturers, the
United; States. Chamber OF COM
nerce,, the Congress Of Industrial
Organizations and the American
Federation. of Labor, met with
Roosevelt. recently to
ointIy assure the. nation of the
iesire of both employer and em-
Dloyee to contribute their utmost
70 the war effort. ~ + \ ~
j., The delegation assured Mr..
Roosevelt that they wished to do
everything possible to win the war
and informed him that I'VE real
lie that in this citical hour the
future of our American system,
free management and
free labor, is at stake We must win
the war to preserve that system
for the future" The President
thanked them for their support,
praised the war production record,
and told them of his resolve to halt
the upward spiral of prices. $
Official Washington considers the
future as the most criti-
cal; of the war in terms of both
military and domestic activities.
Armed with almost unlimited war
powers, as reaffirmed by the U. s.
Supreme Courts military saboteur
trial ruling, the President now
stands ready to tackle control Of
cost elements which include the
regulation of prices and wages.
The zero hour of the anti-inda-
ton drive may be at hand. Justice
the Presidents favor
lte fact-assembler and phrase-mak-
er, is on the job and the stabiliza-
tion plan is reported drawn.
ANMB continues as the primary
body for reconciling and
to WPB Army and Navy
1t will continue
priorities to the military
services and their suppliers sub
ject to WPB directives. WPB mate
rial and industry branches will be
by direct military. CO.
operation. Stature of the Industry
Committees, which will be
made up of representative indus
trialists responsible for maximum
war production, has been increas-
ed.