Evening star., 1942-01-04
Price Control
Continued From First Page.)

troll and the licensing system OF
enforcement. The House rejected
licensing and proposed five-man
board of review with veto power
over the administrations orders.
Coincident with the committees
report. Senator Danaher. Republic
can, Of Connecticut, described the
bill as "a necessary step, but only
one of what should be series Of
efforts to curtail initiation and bring
about an orderly and protecting
economy"
Senator Taft, Republican, Of
Ohio, said he probably will renew
on the floor his motion which was
defeated in committee, for five
man board. He added, however,
that "the bill is all right" and said
he will vote for it even without the
board.
McNary for Unified Control.
At the same time, Senator Nc
Nary of Oregon, minority leader,
made known he is not in sympathy
with the move to place farm prices
under the separate control OF the
Agriculture Department. He be-
lieves price control should all be
in one place.
In addition to regulating the gen.
eral price structure. the bill also
covers these essential factors:
Makes boarding and speculative
manipulation unlawful.
Empowers the administrator to
control rents in defense areas. first
through recommendations made to
local authorities, or, if necessary, by
establishing maximum rents. While
the definition Of defense areas in
cludes the District of Columbia,
Congress has enacted specific
rent law for Washington.
Gives the administrator broad
power to buy and sell commodities
as an added means of controlling the
price level, including purchases out
side of the United States.
Penalty Provisions.
In addition to the licensing meth
cd of enforcement, the Senate bill
would make it possible for a con-
sumer who was charged more than
the fixed price to sue for three times
the overcharge, or $50, whichever is
greater, plus costs of the suit. This
provision would not take effect until
the law has been in operation for
six months.
Neither the House bill nor the
Senate substitute contains any con-
troll over wages. In connection with
this, however, the committee said:
Legislation providing for control
over wages may ultimately be found
necessary as an emergency measure,
but there are strong reasons why
such control, even if it became nee
essary, should not be exercised by
the same agency as that which is
charged with the control over
prices"
The committee also observed that
direct fixing of wages could, in no
event, be acceptable unless cou-
pied with direct and specific deter
mination of the salaries of manage
ment. the dividends of stockholders,
the interest payments received by
bondholders, the incomes of farm
ers or merchants, of professional
persons and of all Others"
In addition to being unnecessary
at this time, the committee said
such complex income control would
require a huge administrative staff,
needed for more important tasks.
Farm Prices Issue.
Senator Bankhead, Democrat, of
Alabama will take the lead in ask
ing the Senate to place farm prices
under Agriculture. He is expected
to move that farm-price jurisdic-
ton be vested in Secretary Wick
ard or that the Secretary be given
veto power over the price admin
istrator as to farm commodities A
motion also is expected on the floor
to restore the House provision, elm
mated in Senate committee. that
farm prices could not be fixed lower
than the average level of the 1919
to-1929 period.
The committee bill prohibits the
price administrator from fixing
farm prices lower than ITO per cent
of parity. or the price level on
October l, 1941. Since only a few
agricultural products are up to par
ity now, the committee pointed out
in last nights report that the ITO
per cent parity floor will make pos
sible further substantial increases in
main agricultural commodities.
For example, the committee
pointed out that wheat. which was
bringing s1O2 a bushel on Decem-
ber IS, could 60 to $1.40 on the
parity rule. Corn was $50 cents a
bushel on December IS, and could
60 to $l.01. Cotton, which was
bringing 1923 cents a pound on
November Is, could rise to 1856
cents.
The committee also pointed out that