Evening star., 1943-04-09


authority to place ceiling prices or
certain commodities had been chal-
lenged by supporters of the Bank
head bill, the President said that In
view of the recommittal of that
measure after his veto, he coulc
not wait to see if the Senate Agri-
culture Committee will report it out
again.
Il cannot permit a continuance OF
this upward spiral of prices" he ex-
planned. Some groups have been
urging Increased prices for farmers
on the ground that wage earners
have unduly profited. Other groups
have been urging increased wages
on the ground that the farmers have
unduly profited. Any continuance
of this conflict will not only cause
imitation but will breed disunity at
a time when unity is essential"
A companion to the Bankhead bill
which would repeal the executive or
der directing that farm benefits be
included in the computation of pari-
ty prices is the Pace bill, also in
the Senate, calling for the inclusion
OF all labor costs in parity prices
for agricultural products
The new order is further imple-
mentation of the October 2 Stabi-
lization Act and provides that all
the powers vested in the President
by that legislation shall be exer-
cised by Mr.. Byrnes
The prescribed little steel" wage
level permits increases to compen-
safe for advancing living costs be-
tween January l, 1941, and May /,
1912, but it takes away from the
War Labor Board the hitherto
exercised power to grant advances
that would top this level, which is
approximately Is per cent, where
this has been necessary to iron out
inequalities. The miners received
an increase year ago in excess OF
Is per cent, but the wage advance
given to the rail brotherhoods
around that time was below that
having been figured around 8 or 10
per cent.
Reasonable Adjustments.
The new restriction will not halt
reasonable adjustments" where pro-
motions, merit increases or reclassi-
f1catlon are concerned, and it also
permits incentive wages" which
have been discussed as an implement
for cutting down absenteeism and
boosting production in war plants.
This modification, however, was
accompanied by the requirement
that increases of this nature are mot
to increase the level of production
costs appreciably or furnish the basis
either to increase prices or to resist
otherwise justiflable reductions in
prices"
Meanwhile, Mr. McNutt called his
aides into conference to prepare
regulations governing transfers to
higher-paying jobs
just how the commission could
control hiring throughout the Ma
ton was uncertain, though Mr.. Nc
Mutt has authorized his regional and
area directors to set up controls
over hiring-largely through the
United States Employment Service
m areas where he believes it
would help solve manpower short
ages.
Only so Areas Controlled.
Thus far, control plans have been
established in only about so areas.
Twelve of the 36 areas, including
Washington, designated as having
most acute labor shortages still have
no plans in effect, but the system is
being extended to new areas con-,
stantly.
The plans are adapted to local
conditions and to adequacy of VINO
and employment service stats to
carry them out. In general, they
give these agencies supervision of
hiring by war plants and leave hir-
ing by non-essential employers a
matter of conscience.
The VINO can force compliance
with its order by war plants by di-
recting Government contract-aWard-
ing agencies to invoke penalties or
cancel contracts of the disobedient.
Selective Service can be used to
enforce compliance in virtually all
quarters, either through grant or
cancellation of draft deferment.
In addition. the VINO can call on
any other Government agency to
use all its powers to back up the
VINO. Thus, the War Production
Board could be asked to withhold
materials from the disobedient, and
the OPA could be asked to impose
rationing penalties.
On the subject of prices, the order
directs the price administrator and
the food administrator as
sumes certain functions heretofore
exercised by the Secretary OF Agri-
culture-"to take immediate steps to
place ceiling prices on all commodi-
ties affecting the cost of living
They also are directed "to author
ize no further increases in ceiling
prices except to the minimum extent
required by law" and Ito prevent
further price increases direct or in
direct, to prevent profiteering and
to reduce prices which are excessive
ly high, unfair or inequitable. +"
Here, too, adjustments are permitted
to meet seasonal or market area
variations, and to permit such sup
port prices, subsidies or other in
ducements as may be authorized by
law and deemed necessary to main :
tain an increased production, pro-
vided that such action does not in
crease the cost of living"
Government economists inter-
preted the Presidents action on farm
prices as preventative. The proc
essed products sold to consumers
are already controlled rather thor
oughly.
In the statement accompanying
his orders President Roosevelt again
called for more taxes to siphon off
excess purchasing power.
Saying that the stabilization law
Slowed up" imitation, and that nov
we must stop it." the President con-