Evening star., 1942-06-20
0PAChief0ffers
ToQuit ttoAssure
PriceSubsidies
Says Slash in Budget
Would Hit Consumer,
Not Bureuucruts
Hy TIE Associated Press.

t>Ot OuICO0SIOtS
BY TIE Associated Press.
Price Administrator Leon
Henderson offered today to re-
sign if Congress made such a
move conditional to appropria-
ton of subsidy funds to support
price ceilings.
Mr.. Henderson, admitting that
Congress might discipline" him by
cutting OPAs budget request, told a
press conference that, if the $751;
100000 budget is trimmed too far,
'the persons who will suffer will not
be bureaucrat Henderson and his
loyal bureaucrats-they will be the
consumers and the retailers
Emphasizing that he believed sub
Sidy legislation, and funds with
which to administer payments to
hold prices at March levels, an in
tegral part of OPA's effort to hold
down the cost of living Mr.. Hender-
son observed that neither wages nor
farm prices had as yet been stabil-
lied, as asked by President Roose-
welt.
Cites Tax Program Delay
Further, he asserted, without
criticism" of those in charge of the
tax program, nothing has been done
to date on the tax fund which will
reduce the inflationary gap"
All of these factors must be con-
sidered, he said, in attempting to
determine whether the battle against
initiation can be won. Mr.. Henderson
has sought approval of the subsidy
arrangement in order to pay. with
Federal funds, the increased costs Of
production, transportation, etc,
rather than let these costs be added
to the prices paid by consumers.
The OPA budget request includes
funds for administering subsidies
and the money for subsidies them
selves would come from the RFC,
under Mr.. Henderson's plans.
Job Depends on Roosevelt.
Regarding his current dispute
with various members of Congress
over patronage questions, which has
produced continuing reports that
his resignation was pending, Mr..
Henderson said that, aside from
the subsidy question, his job de-
pended on President Roosevelts
wishes.
I've got a boss" he declared,
"and over a period of time we've
had one working relationship-an
understanding that when I reached
the end of my usefulness, I'd say
goodbye. Ill leave it to him"
However, he observed, if Congress
made it clear that subsidy powers
would be withheld from OPA until
he quit as price administrator, II
would get out-there's no doubt
about it."
If you've reached the end OF
your usefulness, that's all there is
to it-but I don't think we've gone
that far yet. My job as I see 1t Is
to resist special pressures of all
kinds, hold the line. and hope to
survive.
Had Lot of Fun"
Don't get the idea that l haven't
had hell of a lot of fun these last
few weeks" he added quickly. I've
had a great deal of fun, but not
flendish fun
Il am appointed by the best pol
itician the world has ever known"
he said at another point. Il have no
basic reaction against politicians.
The only trouble we've had was with
fellows who were being pressed And
don't blame them for pressing us"
Mr.. Henderson said that he had
proposed to Congress that OPA be
given authority to take our troubles
to the RFC" with this agency actu-
ally providing funds for subsidy
payments which would keep hard
pressed merchants in business. Sub
Sidy payments, he continued. were
the keynote of Canada'S price con-
troll administration, while in Great
Britain, subsidies now are averaging
about 81 900 100000 a year.
Reviews OPA Program.
Reviewing OPA's entire program.
Mr.. Henderson said that present
price ceilings would result in saw
ing of 62,000, 900 900 in cost of the
entire war program over the next
20 months, comparing prices with
those of the last war. This is
based on an expenditure of S130000,-
900 for war in the 20 months period.
Price ceilings on steel, copper and
other war materials already have
resulted in saving in the war
program of $6,000,000, 900, he added.
Mr.. Henderson said his requested
budget of Sl61 900 900 would cover
the cost of the entire OPA program
in the next year. He said that
only 5000 persons would be en-
ployed, of which $500 would be ex-
aminers in the enforcement end Of
price fixing and rationing.
Mr.. Henderson pointed out that
rumors had placed the total number
OPA would employ in enforcing its
program as high as 100000. The
Price Administration, however, ex-
poets to use between 2,,000,0 900 and
$500 900 persons on a voluntary
basis in carrying out its program this
year Most of these volunteers will
be employed in war price rationing
boards