Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-09


the price-control David Lawrence.
bill was passed that there would be
no effort to regulate profits, since
this is something which Congress re-
serves to itself through the tax laws.
But the President not merely ignored
the taxing power OF Congress in the
matter Of putting a ceiling on sal
aries, but he issued an executive
order which gives the Office of Price
Administration the power to regulate
the profits of any or all businesses
In the country, irrespective Of
whether they have war contracts.
The executive order dated October
), 1912, reads in part as follows:
The price administrator, in fix
ing, reducing or increasing prices,
shall determine price ceilings in such
manner that profits are prevented
which in his Judgment are unrea-
sonable or exorbitant"
What Is the Standard?
What is unreasonable" or Tex
orbitsnt, and where is the leglSla-
tive standard prescribed by Congress
IS g guide TO the executive agency
In question? Is OPA TO be the regu-
lator Of all profits for wholesale and
retail buslnesses-for food, clothing.
manufactured articles and even serv-
ices?
Former Senator Brown, the OPA
administrator, has publicly assured
the Congress that he does not be-
IeVe tie power granted OPA should
be used to control or regulate profits,
but some of his subordinates dis
agree with him and point to the
language of the Presidents eXecu-
tive order as the mandate that
governs their actions.
The price law itself. which was
passed by Congress last October
contains this provision
The powers granted in this sec
ton shall not be used or made TO
operate to compel changes in the
business practices, cost practices or
methods, or means or aids to dis
tribution, established in any indus
try except to prevent -circumvention
or evasion of any regulation, order,
price schedule or requirement under
this act
Certainly the practice of making
profit is interfered with when some
one is an executive agency sets him
self up as a judge of what Is "un-
reasonable or exorbitant." No such
power exists in any agency Of the
Government and the OPA officials
would not be asserting it except
that some Of the left-wingers who
wrote for Mr.. Roosevelt's signature
the executive order he issued last
October saw an opportunity to put
into effect a system Of Government
regulation Of profits by bureaucrats
rather than by tax rates and
schedules
Present Law Severe.
The present excess profits law is
plenty severe. 1t runs up to 80 per
cent Of the evCess profits and when
st is combined with the normal
taxes. companies on the maximum
basis cannot retain more than 20
per cent of all their profits. Fur
thermore, the Treasury has author
tty from Congress to pass on al
iovable deductions for any or all
expenses or costs, So there is ample
control of what constitutes cost and
ample power to take away profits.
To put this power into the OPA
Is 10 arrange for duplicate system
Of taxation without going through
the machinery OF the revenue laws.
AS matter Of fact, in many in
stances 1t would mean loss Of taxes
10 the Treasury, because when
profits are distributed in the form
of dividends TO the numerous stock
holders Of large corporations the
Treasury gets much less money than
1t does II the assessment is made
upon the corporation direct
Even if the President Withdrew or
modified the executive order which
plainly gives OPA power to control
profits in non-War industries as well
as war industries, there would be
no security against a return to the
same practice at a later time Hence,
Senator George, Democrat, q
Georgia is considering the intro
oucIon Of an amendment to the
pending public debt bill which VOL
specifically prohibit the OPA OF any
other Government agency from
using its powers to control profits.
Certainly there would be even more
extensive popular support for such
rider than for the salary llmita-
ton rider, which appears TO be
backed by an overwhelming mum
Der Of members Of Congress.
1t il a sad commentary on good
faIth IN Government that EXECUTING
agencies oyerreacn themselves and
prepare executive orders which Nj
Roosevelt signs because ne cannot
possibly know all the tricks that are
used by his own left-Wlng encourage
20 propagate state socialism.