Detroit evening times. (Detroit, Mich) 1921-1958, 1942-01-24
Price Control
Urged to Cut
Costs Of War
Lack Of Law Now Held
Boosting Bills 10 Billion
BY HUGH S. JOHNSON

By HUGH s. JOHNSON
NOBODY knows, even in terms
~ of astronomical billions,
what this war will cost and has
cost us already-the undisclosed
damages at Pearl Harbor-ths
moneys and goods we have sup
piled to anti-Axis powers that
will never be returned-the do
nestle losses among small bust
ness enterprises suffered and to
be suffered as we go along-the
losses TO labor now due to pri-
critics and future losses yet un.
measured and unreasonable.
Much OF the vast equipment
we are making is absolutely in
dispensable now. A day will
come when most Of il and the
hundreds Of millions of dollars
in plants we have built to make
il. won't have as much salvage
value as would be left if il were
all burned in one colossal fire.
None OF this includes our
multiplied losses if we enter the
arena OF world combat and are
not confined. as now. merely to
outpost actions and skirmishing
at sea.
The possibilities of loss, which
must be paid out of American
pocketbooks are staggering.
There is no way to avoid this il
we are TO continue in our an
nounced policy of waging war
ANY place on earth" where a
pro-Axis force threatens TO fight.
THERE is no use protesting
L this, because il can't be
avoided. but there is one addi-
tional element that seems TO be
little understood. That is that
the sum total Of this unprece-
dented cost can be multiplied by
two or three without bringing US
any benefit or adding an ounce
of material or man-power TO our
total effort.
Prices always rise in war. and
in such worldwide war as this,
there is no limit TO that multi
pller. 80 World War | cost us 2l3
per cent of what il would have
cost II prices had been con-
trolled. II cost the central and
F, allied powers nearly three times
what IL would have cost at pre-
var pFiees.-
Now surely. here is a catas-
trophe as much 10 be avoided az
the loss Of major campaign
and the destruction Of armies.
II is also quite apparent from
our first World War experience
that IL could be avoided. Fist.
fulS OF new theories as 10 how
TO avoid il indirectly have been
advanced, higher taxes, forced
savings, restricted borrowing
power-for example. These are
all theoretical and untried.
The simplest and most direct
way TO avoid them is 10 control
them and make II unlawful TO
charge any prices higher than
The existing and already partly
inflated structure.
That is generous enough in all
conscience. II is already esti-
mated that this war has cost US
$1,000. 900 900 more than il
would have cost at pre-war
prices
OF course. that can't be done
unless all prices are controlled,
because any rise in any big seq
ment of the price pattern tends
10 pull the whole structure up
ward.
WIS Is especially true Of the
prices Of labor and farm prod
uctS. Both enter Importantly
into the cost Of everything that
moves IN commerce. You will
get few arguments out of any
authorities on the truth Of that
proposition
Yet, here on a front as dam
Gerous and important as any
battlefield, in proposed cam
palgn like this price fixing job,
We have had and can get no ac-
ton worthy Of the name. =
II IS true that Mr. Henderson
has moved in vigorously on some
few prices. He has moved on
his own courage and good sense,
but with doubtful statutory au-
thorlty. Furthermore. his efforts
10 control all prices by attack
ing few is like trying 10 fill a
barrel with a Sieve-bottom
bucket.
Congress has fumbled with
this problem for months. 1t
seems utterly afraid even to
touch the labor element Of cost
and has justified the farmers
into demanding almost equal i'm
munity from price control.
Mr.. Henderson scarcely has
any choice but TO move into
every community with the most
heavily manned organization en-
ployed by any of the New Deal
agencies and attempt 10 force
down even local advances in
things of no great imDortance-