Evening star., 1942-04-11
The Political Mill
Sterilization Of Woses Along With Prices and
Profits Seen os Need in Checking Initiation
BY GOULD LINCOLN.

Dy oOoAD 1lksSobtNs
Prices. profits and wages
three factors of inflation--con-
tinue the problems which con-
front the American people in this
time Of war. With one Of them,
alone. Congress has dealt-prices.
1t put through a price control
law after considerable delay.
Fortunately the price admins
traitor, Leon Henderson, appoint
ed by President Roosevelt in ad-
vance of congressional action,
already had taken some steps to
prevent a tremendous price in
flation.
The law which Congress finally
put through last January Is a
workable proposition - If the
question Of increased and in
creasing wages is forgotten for
the moment. 1t may be presumed
that Mr.. Henderson, under the
powers granted him by the law
and by the President, will deal
adequately with prices, provided
the lawmaking body also deals
with profits and wages.
Both profits and wages are
bound up inextricably with
prices-and prices are what the
American public will feel, do feel,
at present. Strenuous efforts
were made to get both the ad-
ministration and Congress to
deal with the question of both
wages and profits when the price
control bill was under considera-
ton. Bernard M. Baruch, head
OF the War Industries Board in
the last World War, had much
to say at the time in favor of an
overall ceiling on wages and
profits and prices. But too much
pressure was exerted against the
adoption of such a general pro-
gram.
Revenue Bill May Help.
1t has become increasingly ap-
parent, however, that II the wolf
of imitation is to be kept from the
door, something will have to be
done about both profits and
wages. The House Ways and
Means Committee now is work.
ing on new revenue measure.
1t is in that bill profits can be
taken care of-through special
excess profits taxes-and prop
erly so.
The House recently put through
a $le,o0o,o00,ooO appropriation
bill for war purposes and wrote
into it a provision saying that
none Of the money should be ex-
pended for Government contracts
under which the contracting par
ties would receive more than 6
per cent profit. The Senate toyed
with this proposition and finally
sent the measure to conference
to work out some kind of profit
limitation formula. This, how
ever, is merely dabbling the toes
in the water of profits under war
conditions.
So far as the question of wages
Is concerned, both the admins
tration and Congress have avoid
ed any real attempt by legisla-
ton to deal with increases.
Action on Profits Promised.
There seems no slightest doubt
that the question of profits will
be taken care Of, through excess
profits taxes and special taxes,
when the revenue bill is con-
sidered in both the House and
the Senate. The promise that
this will be done has come from
many sources.
The House Ways and Means
Committee Is still holding hear
ings on the revenue bill, however,
and it is not expected that the
committee will be ready to report
a measure to the House before
the middle of May or early June.
1t may be the last of August
before the new law is finally put
through both houses and ap-
proved by the President. Since,
. however, the new law will apply
to all incomes and profits made
during the current calendar year,
it will not be too late to deal
effectively with the question Of
war profits. Indeed, there IS am