The midland journal. (Rising Sun, Md.) 1885-1947, 1942-06-12
rnaijidflaqba,
Washington, d. g.
HENDERSON'S WARNING

SOtA tOtu Tic iiOuSG ways dAu AtCdiAD
committee a lot more during his
secret testimony than he afterwards
disclosed to newsmen. Here are
some items which weren't made
public:
Henderson predicted that il the
current levels Of earnings are main
tanned, the total national income this
year will approximate 1T billion
dollars, or Is billions more than In
1941.
On the other hand, due to the
enormous war production demands,
the supply Of consumer goods will
be 20 per cent less than last year.
This wide disparity between pur-
chasing power and available con-
sumner goods, Henderson warned, is
the great infationary explosive"
factor. With lot more money in
peoples pockets than supplies on
which to spend 1t, competitive
situation develops that may set off
catastrophe price runaway I'M
less drastically controlled.
17-Billiion Excess.
Illustrating this problem, Hender-
son pointed out that about 81 billions
of the estimated 117-billion national
income will be absorbed by taxes
and savings, leaving SO billions in
spendable money. However, there
will be only SO billions Of consumer
commodities.
This 17-billion excess, he declared,
il what must be kept in check
in order to prevent it from setting in
motion an inflationary spiral that
would smash the nations economic
system.
Tough as this problem is, Hender-
son predicted that the situation will
be even worse in 1913. He estimated
that by next year purchasing power
will be three times greater than in
1882 while the supply of consumer
goods will be only the same as in
that year, the pit of the depression.
The price administrator told the
committee that the only way disas-
trous imitation can be averted is by
the most stringent government con-
trolls.
He said he fully realized that
such measures as rati0ning and
price ceilings might cause boot
logging and "blackmarkets."
But he expressed the belief that
patriotic public opinion would
powerfully initiate against such
hwbreaking.
I'm England" Henderson pointed
out, 'bootlegging of food and other
scarce commodities is causing so
much public resentment that many
are demanding that those who buy
or sell on the black market be
taken out and shot,"
BIG BUSINESS MIRACLES
No one ever would have suspected
it, but Harold Ickes, the New Deals
most violent batter of big business,
has been performing some quiet
miracles in obtaining big bust
ness cooperation.
Not only is he now on good terms
with the moguls of the oil industry,
including such bitter political OPP
ponents as Joe and Howard Pew,
leaders of Pennsylvania Republican
ism, but he has also been getting CO.
operation from the railroads and
trucking companies.
This is one of the few good things
that has come out of the war
Ever since trucks began hauling
freight, the feud between them and
the railroads has been the toughest
problem faced by the Interstate
Commerce commission.
But now Petroleum Co-ordinator
Ickes has persuaded the ancient RI
walls to make a friendly division Of
the tremendous oil transportation
business whereby the railroads with
drew from short hauls, and turn
business over to trucks, thus releas-
ing tank cars for the longer and
more economic hauls. '
For instance, railroad tank car,
with a capacity Of 5000 gallons, OPP
Grating between Whiting, Ind, and
the west side Of Chicago, requires
six days to make the turn around"
But tank truck, capacity 1880 gall
Ions, can do the same turn around"
in FIVE hours.
Thus, one tank truck, working "a
hours, (and all such equipment is
on a 24-hour basis) would relieve
the equivalent of 16 or 20 tank cars.
These cars, in turn, are being placed
on the longer hauls from the Gulf to
the East coast.
Result of such economies and
overtime operations is that railroads
which normally move practically no
oil to the East coast, are now NOV
ing $50, 900 barrels day. Tankers
(ships) normally supply IS per cent
of the East coast requirement, but
with the withdrawal of tankers, tank
cars are being rushed into the
breach.
WIG WAGS
The war department has asked
congress for. a $40 a month pay
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