Evening star., 1943-06-02

House Group Is Told
OPA Ignored Industry
In Framing Of Rules
Leon Henderson, former price ad-
ministrator, was a surprise witness
today before the House Smith COM
mittee investigating whether execu-
tive departments and agencies had
exceeded their authority. He was
recognized in the audience by COM
mittee member and invited to testify
regarding an admission by his secre-
tary, Miss Lou Landreth, that she
had signed his name to a maximum
rent regulation issued by OPA last
October.
Mr.. Henderson said he could not
positively identify whether the sig
nature Leon Henderson" below a
specific OPA rent regulation ac-
tually was his. He admitted that
lin many instances his name was
affixed to orders and regulations
when he was lin conference and a
deadline had to be met"
Secretary Asked to Testify.
II was believed that Mr.. Hender-
son had accompanied Miss Landreth
to the hearing. She had been asked
to testify in connection with a pend
ing rent-control investigation and
charges by the committee counsel
that authorized officials could not
ho bol eir
on regulations that had been issued.
Earlier in the hearing E. N. Rich
mond, president of the Richmond
Chase Co. of San Jose, Calf, told
the committee that national ad-
vertlsing of branded products would
be severely curtailed" as a result
of any grade Labelling program
He argued that national advertis-
ing on the part of a relatively few
producers has been helpful in de-
veloping markets with reference to
consumer acceptance of canned
products
Advertising Helped Industry.
The growth of the canning in
dustry, he said. was in considerable
measure the result of advertising
and has increased from $4,000 900
cases in 1880 to 2e3.OOO,OO0 cases in
1910. Future production is depend
ent upon cooperation between the
canning industry and the many Gov
ernment agencies controlling phases
of it, he warned.
The OPA proposals for A, B. c
grading of canned goods as a basis
for regional price ceilings would ben
eft only "low cost producers" of
unbranded products, the witness told
the committee.
Manufacturers and producers of
trade-marked merchandise through
out the year have higher cost of
distribution as we'll as their adver-
tising budgets to meet, he said. Low
ceilings based on minimum stand
ards would cheaper the quality of
their products and force complete
readjustment of their business prac-
tees, Mr.. Richmond said.
OPA Ignored Industry.
Harold K. Bachelor, president of
the Ladoga Canning Co.. Indianap-
oils, Ind, protested that OPA had
adopted regulations without con-
sulting officials of the canning in
dustry. He charged OPA regula-
tions were unfair, unworkable and
were not drafted by practical men"
An OPA order requiring the
grading of canned goods on the
labels, subsequently amended to re-
quire only the designation of grades
in invoices, was criticized by Mr..
Bachelor.
The witness testified that this
compelled very grave and radical
change in business methods of the
Gamers. He explained that grades
do not reflect differences in con-
sumer acceptance of the product.
They are nothing more than "a bu-
reaucratic effort TO make an arbi-
trary division of each food into a
specific number of grades he said
Study Rent Control.
The committee, which also is in
vestigating OPA rent control, was
told late yesterday how the rent on
three-room apartment at 1901
Twenty street Sc. had been
jumped from $3.50 unfurnished to
$50 furnished. without permission of
the rent administrator.
The rent was increased. the COM
r1ittee was told, when Ensign George
r. Hall. native of Cambridge, Ohio,
now in the Photographic interpreta-
ton Office of the Naval Air Station,
moved into the apartment with his
wife. George Marshall. the apart
ment manager, said the rent was
boosted after $3.50 had been paid for
the furniture in the living room, bed
room ann dinette.
Rent Control Administrator Robert
F.. Cogswell said the raise appears
to be out of line with the cost of the
furniture and my Office will look into
the matter just as soon as complaint
is formally filed with u.s."
Violations Unintentional.
0. H. Garvin, speaking for himself
and U. S. Randle as co-owners, said:
IF regulations were violated it was
completely unintentional did not
know we had to change the ceiling
price with the rent administrator.
We simply tried to set fair rental
on the value of the furniture, which
amounts to about 81 a day"
Mr.. Cogswell declared "the apart
ment owner should have filed an
application form with US asking for