Evening star., 1943-07-24
Substitute Plan
For Sterilization
Proposed by Taft
Controlled Increases
In Wages, Prices
Held Best Solution
Ey the Associated Press.

Ey the Associated Press.
A senatorial suggestion that
the present economic stabiliza-
ton program be scrapped in ia
vor of controlled wage and price
increases climaxed a series of
rapid-f1re developments today on
the Nations anti imitation front.
The controlled increase system
was proposed by Senator Taft, Re-
publican, Of Ohio and semiseconded
by Senators Hatch, Democrat, of
New Mexico and Russell, Democrat,
of Georgia, who agreed with his
contention that Price Administrator
Brown faces an impossible task"
in holding the line against inf1a-
ton under present conditions.
Straw in the Wind.
Coming in the wake of a War
Labor Board warning to labor
against seeking 'inflationary wage
increases" and a presidential dis
closure that the administration
plans to reorganize the entire stabil-
ization program, the Taft proposal
assumed added import as possible
straw in the wind.
Senator Taft told an interviewer
he believed labor leaders were ASK
ing something impossible" in de-
manding that prices be cut back to
levels of September Is, 1912, and
suggested, instead. that an agree
ment be reached unGer which wages
and living costs would be allowed
to rise not more than per cent
year, or one-half per cent a month.
Il have never thought that we
could maintain rigid controls with
out any adjustment" the Ohioan
said. 1T seems to me that the SEN
sible thing to do is to recognize that
in wartime there is bound to be
some imitation and to seek to keep
prices and wages from getting out
OF relationship with each other,
rather than to attempt to roll them
back to a certain level"
Presidents Statement.
President Roosevelt disclosed the
administration efforts at his news
conference, said no agreement has
yet been reached. and that when it
is, Congress will have to pass on it
because it will cost money. His
statement came a day after leau-
ers OF organized labor and asked
for a retail price rollback TO Sep
tember Is, 1912, levels or abandon
ment of the Little Steel rule bv
which the WLB generally holds
wage increases to within IS per cent
OF the January /, 1941, levels.
But the WLB said fatty that it
intended to stick to the Little Steel
formula even though "other c;ivi-
sions Of the anti-inf1ation armv NAV
weaken" In an opinion refusing
wage increases to Los Angeles
transit workers, the WLB told labor
1t should look to what is likely to
happen If that (stabilization) pro-
grams broken down.
The President gave no indications
OF what turn the anti-inflation talks
are taking, simply saying that the
administration is seeking to reor-
ganize the fight with a new price
control and stabilization program.
He also commented on the difficulty
of restoring September IS price
levels.
Russell, Hatch Comment.
Concerning Senator Taft's pro-
posed program, Senators Russell
and Hatch voiced partial approval,
the former saying: Il don't see how
We are going to avoid an upward
adjustment of prices and wages"
Senator Hatch commented that
there might be merit in the idea of
permitting controlled increases, but
said the difficulty lies in attempting
to administer such controls. He said
he felt the only solution lay in the
payment of subsidies, and while
Senator Russell said he hated to
see that method employed, he con-
ceded that it might be the only
practical answer to the problem.
From Chairman Smith of the Sem
ate Agriculture Committee came
the assertion that if labor leaders
attempted to break through the
Little Steel formula with wage in
creases farmers were certain to
demand higher prices for their prod
ucts.
Il think that's a bad move for
the labor people to be making at
this time" he said.