The people's voice. [volume] (Helena, Mont.) 1939-1969, 1943-08-06
"H0LD The Line"
ORDERS ON PRICES
fail TO HOLD

nil ~ uVkO
Wages and the cost of living were
supposed to have been in balance in
January 1941. By May 1912, the cost
of living according to the Depart
ment of Labor's estimate which is adj
mitted to be an understatement) had
gone up Is per cent. Therefore, the
War Labor Board refused to permit
wage increases of more than Is per-
cent higher than January 1941.
Increase wages more that that, it
was said, and you run the risk of in
flation. Nobody worried much about
the inflationary effects of skyrocket-
ing profits and fat salary increases
for corporation managers.
The assumption was that OPA
would hold the line on prices as of
May 1912. Actually what happened?
Prices kept going up. The prices on
foods that workers buy were, accord
ing to the Labor department, about
10 percent higher in January 1943
than in May 1912.
But Jimmy Byrnes and his back-of-
the-scenes finaglers and the WLB re-
fused to modify the Is per cent order.
OPA, meanwhile, which began as
an agency to defend the consumer
interest, got politician Prentiss Brown
as administrator and went straight
and fast to the big-business dogs. The
result was weakening of whatever
price controls had existed up to that
point.
Brown took office in January 1913.
Showing what some people said was
a concern for building a political ma
chine back home, he took on as head
of his information division, the De-
troit advertising executive who han
dies the Ford and other big advertis-
ing accounts, Lou r. Maxon.
Maxon was supposed to review all
policy decisions for their effects on
public opinion. Pretty soon it began
to be clear that what Maxon under
stood by the word public" was the
conglomeration of Gamers, packers,
food brokers, distributors, and land |
lords who were interested in making |
the sky the limit on prices.
Brown had a fits-and-starts policy |
on price roll-backs. When he finally
ordered roll-backs on a few items re-
Gently. he still left ceiling prices far
above what they were in January 1871 |
or May 1912, the date as of which
wages were frozen.
For example, after the roll-back the
price of hamburger in Milwaukee was
still 124 per cent higher than in jan
nary 1871 and the price of Pork shout
Ter in Canton, Ohio, was still 100 per
cent higher.
In order to enforce price control,
you have to know exactly what article
you are getting at the price. If an
Inferior grade is sold for the price
you once paid for a better grade,
hats a hidden price increase. This
IS why grade labelling is so important.
rhe grade labelling order which had
he support of all branches of labor
AFL, CLIO, and Railroad Brotherhoods
was rescinded by Brown apparently
n response to pressure from Libby,
Mcneil and Libby, Del Monte, Gerber,
he baby food man, General Foods,
Heinz, the National Gamers Associa-
ion, the Associated Grocery Manu-
acturers and the Association of Ma
ional Manufacturers, all of whom
lave benefited by keeping the con-
In 70 ot.Lx oh hot hoS l.
,etting.
Although the same Gamers sell
,raded goods in Canada, they said
hat grade labelling in the United
states would harm the food industry
eriously.
Maxon, who wasn't worried about
he effect on public opinion of his
oarding canned goods at his lodge i
n the Michigan woods or about the 1
fleet of his getting by questionable !
leans coupons for 416 lbs. of sugar, &
SO pounds of coffee and 10000 points {
Or meat and canned goods, announced Z
is support for the proposal to threw {
way price ceilings on rationed goods t
Re also announced that he was for a +
soft" enforcement policy by which /
e meant letting profiteers and black S
larket operators go scot-free. t
OPA's investigation of prices in 4
pal communities that were affected 0
y the Mineworkers strike admitted t
idespread violation of price ceilings e
/ Detroit the UAWCIO found that a
I per cent of chain stores and super ]
larkets and IS per cent of the indie j
endents were violating the ceilings. l.
1t isn't only because OPA has is |,
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