Detroit evening times. (Detroit, Mich) 1921-1958, 1942-05-07
Henderson's
Price Level
Full Of Holes
A Third Of Living Costs
Not Covered by Pegs
BY PAUL MALLON

WASHINGTON. May THE
w price level which Mr.. Hen
derson has frozen over the cost
OF living is about one-third holes.
1t resembles a frozen slice Of
Swiss cheese in which the air
vents are nearly as large as the
substance. Any possibility that
il will hold the cost of existence
to the rates of March diminishes
as you study the facts and
figures.
Henderson was unable TO
touch fresh vegetables. eggs,
poultry, milk, flour. mutton and
lamb, fish. fruits, used automo-
biles. prices in hotels. restau-
rants. bars and amusements, OF
doctors or lawyers fees.
Various legal or practical OBJ
stacles stood in his way. Great
est barriers were two:
He could not deal with any
except processed items of food
and he could not deal even with
these where the farm price was
not yet near ITO per cent OF
parity.
MIR. HENDERSON conceded,
WI in making his announce
ment. that Is to 40 per cent Of
the items of food were not in
Guided, but a closer analysis
indicates the top figure nearer
accurate. The American people
spent last year for processed
foods $17,470, 100000, and for
non-processed foods (the vacant
spots in Mr.. Henderson's price
ceiling). $7,720,00O, 900.
Last year, also, the American
people spent S21 900, 600, 900 for
services. In this field Mr.. Hen
derson has been able, for in
stance. to fix the price Of shoe
half soling, but not for haircuts.
He has fixed laundry and dry
cleaning, but not beauty shops.
The people spent $4,000, OOO.-
600 for housing last year. but
Henderson is fixing rents only
in war areas; $500, 900, 900 for
medical care, which is unfixed:
81, 700,00O,O00 for recreation,
which is unfixed, and $1,000
100000 for laundry. tailoring
and personal care, about half OF
which is fixed.
This means that out of $21,-
600, 900, 900 which the people may
spend for services again this
year. certainly a third and pos
sibly more is not being touched
by Mr.. Henderson or any one
else.
A DID to this the fact that
IA many items which go to
make up costs of loaf of bread
or a shirt remain unfroZen, and
you encounter further danger.
The cost of labor, transporta-
ton, packaging, advertising and
merchandising contribute more
to both the bread loaf and shirt
than the ingredients in it. Yet.
these are free to advance, and
with a shortage Of labor coming
on, may be subject to COMPETE
tive bidding by employers.
This brings you to the largest
hole in the entire ceiling-the
prospect that quality and guam
tity can be reduced without de-
lection or regulation. Henderson
recognized this. His experts
frankly gave up any effort to
stop prices in restaurants, hotels
and bars because they realized
served portions could be cut
down so easily that price cell
ing would have no effect.
But the same thing can be
done with the amount OF cotton
or wool that goes into a shirt or
a suit of clothes.
No one knows what could be
done about this that would be
effective, but, until some one
does, the prospects that the cost
and standard of living can be
pegged by Mr.. Henderson's ac-
ton must remain remote.
1T is true Henderson has not
Il frozen bus fares. electric
lights, water and such items of
public necessity. but he can de-
pend upon local public service
commissions to keep these in
line, and upon the interstate
commerce commission TO keep
rail rates down. Or can he?
At any rate, his program as
sumes that he will
NOW. all these causes and ef-
" fectS have been loaded upon
Mr.. Henderson in this column for
the purpose of simple presenta-
ton, but the responsibility is not
entirely his.
Worst holes in his price ceiling
sieve would be closed If Con-
gresS followed Mr.. Roosevelts
recommendation and reduced the
farm parity goal from ITO per
cent fixed by the farm bloc.
This, however, is impossible.
Largest holes are. therefore,
certain 10 remain open.
THUS, price-fixing will remain
Il partial program. A be-
ginning of a program. until the
government at least gets around
to doing something about wages.