Evening star., 1942-09-14
Initiation Bill
IsIntroduced
In Senate
Would Peg Wages
At Aug. IS Level,
Fix Farm Prices
(Tcrt on Page B-fl.)
BY J. A. O'LEARY.

n ulIcCtlUfl W tIlC IlCSlOCit W
stabilize prices and wages as OF
August Is, with farm prices at
levels not below parity, but with
leeway to correct gross in
was introduced in the
Senate today by administration
leaders in response to President
demand that Con-
gress act by October 1 to control
Senator Brown, Democrat, OF
who joined Chairman
Wagner of the Senate Banking Com
mittee In drafting the bill, empha-
sized that it is not a freezing plan,
but an effort to stabilize both prices
and wages within certain prescribed
rules. 1t would give the President
broad power to deal with all factors
involved in the cost of living, but
it is not a blanket delegation of
authority to the President.
Mr.. Roosevelt has been kept ad-
vised of the conferences at the Capt.
tol and the bill offered in the Senate
today was said to be satisfactory to
him. Senator Brown said it meets
the general objectives" Of the
Presidents message, and Senator
Wagner predicted the Chief Execu-
tive would sign it.
Parity Farm Prices.
For farm commodities the bill
makes parity the general standard,
instead of 110 per cent of parity in
the present law or the highest mar
ket price for any commodity be-
tween January l and September Is
Of this year.
Senator Brown explained that the
January to- September alternative
was included mainly for cotton and
tobacco.
In stabilizing wages, three safe
guards are included: First, 1t pro-
vides no action may be taken incon-
sistent with the Fair Labor Stand
ards Act of 1898; second, it permits
the War Labor Board to decide all
cases pending as of September Is:
and, third, it prohibits any reduction
in the highest wages paid for any
particular work between January 1
and September Is of this year.
In explaining why leeway was
given the President to depart from
August Is levels If gross inequity
could be shown, Senate Wagner
and Brown pointed out that some
groups Of employees entered into
three-year wage contracts in 1899,
when the cost of living was lower.
and if such agreements were still
In effect on August IS. 1t would be
unfair to stabilize these employees
at the 1889, level.
Parity Not Mandatory.
Senator Brown said that while the
President Is limited in his acion on
farm prices to parity as floor be-
low which he may not 60, this does
not require that agricultural prices
be brought up to parity in all cases.
Meanwhile. on the House side.
Chairman Steagall of the Banking
Committee had not made known
whether he would introduce the
same or a different bill. Senate
leaders expressed the hope, how
ever. that those in charge of the
legislation at both ends of the Capi.
tol are not far apart.
Housce members are said to be
working on provision that would
place a floor" under prices and
wages to keep them from falling
too sharply after the war, but
Senate leaders do not regard this
as an imminent problem, since it
is one that is not likely to arise
until the war is over. For that rea-
son they would prefer to write a
general declaration of policy on fu-
ture minimum price and wage levels
and tackle the details later.
Farm Prices to Stand.
The general effect on this limita-
ton, Senator Brown said, would be
to keep farm prices at about their
present levels, since the average Of
these prices now is estimated at
101 per cent of parity.
The August Is date for stabilizing
wages was chosen, Senator Brown
reported. because it comedies with
Government statistical periods. He
said, however, that the date might
later be changed to September Is
If the Senate Banking Committee
decided this was necessary.
Senator Brown said the Presi-
dents general stabilization author
ity would be broad enough so that
he could deal with such factors as
proposed utility rate increases. The
general powers, he commented,
would be "as broad as anybody
wants them In that respect"
Senator Brown said the Presi-
dents control over wages and SAL
aries would be broad enough to
cover pay increases given volun-
tarily by employers. 1t would cover
salaries as well as wages. The
controls would not apply to appli-
cations for wage increases now
pending before the War Labor
Board.
The measure also would extend
operation of the Price Control Act
for one year from June 80, 1943.
Senator Brown explained that the
new measure would contain pro-
visions similar to those in the price
control law by which the act could
be suspended by a concurrent reso-
luton of Congress or by presiden-
tial proclamation.
Labor controls were added after
(See INITIATION, Page A-2)