Evening star., 1942-01-11
25% Food Cost Rise
Seen Under Price Bill
As Passed by Senate
Measure Expected
To Be Revised
Conference
BY GOULD E1NcOLN,

BY GOULD ETNCOLN.
The Senate late yeseesday
passed a wartime price-controS
measure 50 much amended by
its farm bloc that critics said
1t would increase food prices IS
per cent, and Majority Leader
Barley called it a "farm-relief
bill"
The vote on final passage was 83
to l. The single opposing was cast
by Senator Nye, Republican, Of
North Dakota, who said he was
unwilling to put the farmers of
America In q straight jacket" while
leaving industrial wages free to
advance without limitation.
The farm bloc, aided by some
Senators who dislike the one-man
control provided in the measure,
with Leon Henderson slated as ad-
ministrator, ran roughshod over
Administration forces for q second
time. 1t brought about the adoption
Of the OMahoney amendment
which left many farm commodities
free to rise above present levels.
The OMahoney amendment was
carried by vote of SIS to 81. Coming
on top Of the adoption of the Bank
head amendment, which places con-
troll Of farm prices under the
supervision of the Secretary Of
Agriculture, the blow to the Ad.
ministration was even greater.
Much Rewriting Expected.
The measure, intended to help
prevent imitation and sky-rocketing
living cost, now goes to conference.
1t is expected that 1t will be re-
written materially in the committee
representing the Senate and the
House. The Senate struck out the
entire text of the bill passed by the
House in November and substituted
its own bill.
When the bill passed the House
with q provision allowing sharp
increases in farm prices the word
was passed around that President
Roosevelt would veto it If it reached
him in that form.
The President in a letter read in
the Senate before the vote on the
Bankhead amendment was taken.
protested against placing the secre-
tary of Agriculture virtually In con.
troll Of all farm prices-but to no
avail.
The OMahoney amendment, Of
fered by the Democratic Senator
from Wyoming. brings into the adj
ministrattors Of the measure consid-
Grafton Of Industrial wages by d.
recting that the Federal Reserve
Boards index Of industrial wages
should be used as q factor tn calcu-
lating parity figures. The effect Of
this. it was claimed, was to raise
parity about 10 per cent.
parity is the price at which
the Agriculture Department fig
ures that q farm product has
the same purchasing power, in
terms of non-farm products, that
it had in the 1s04-14 period9
Wanted Wages Considered.
The theory on which the indus
trial wages feature Of the amend
ment was written Is that, with no
control in the law over urban wages,
the old parity" levels between prices
of farm products and Of the things
the farmer has to buy would be far
out Of line.
1t was argued that if urban wages
are to be taken into consideration In
fixing farm prices, this fact would
necessarily act as deterrent on the
increasing upward spiral Of wages.
This argument brought the support
of a number of Senators who fear
runaway prices Of manufactured
goods because wages have not been
included in the price control meas
ure.
Before his amendment was adop-
ted, Senator OMahoney accepted
an amendment offered by Senator
Russell, Democrat, Of Georgia, and
which is contained in the House
bill. providing that no price ceiling
should be fixed on farm commodi-
ties below the 1919-1929 averages
period when farm prices were the
highest in history.
The OMahoney amendment would
boost the parity level for farm
products to 121 per cent. The bill
lSee PRICE CONTROL. Page A.4.l