Evening star., 1943-05-20
0PA Failed 10 Halt
Rise in Living Costs,
Labor Bureau Finds
D. c. Price Advance Put
At 2l.4 Per Cent Over
January, l941, in Report

"A SC11CA al 11lS1 CCoC III CAAC COS
OF living, despite the OPA's sys-
tenn of price ceilings, was re-
ported today by the Labor De-
partment's Bureau of Labor
Statistics.
The increase in living costs in the
District for the month ended March
IS was II per cent as compared
with an average increase of Is pei
cent in other large cities. At the
same time, it was reported, prices
generally are now SO per cent
above the levels of March, 1912 anc
21A per cent above those of Janu-
ary, 1941.
These increases were interpreted
as indicating the failure of the
OPA's price control program during
its first year, but it also was en-
phasized that the figures do not re-
feet the latest efforts of the OPA
to regulate prices through the i'm
position of lars-and-cents cell
ings and the elimination of black
markets. Until recently, most
products were on an individual CELL
ing basis, pegged at the highest
levels of March, 1912, and the OPA
has several times conceded the i'm
practicability of enforcing prices
under this method.
Since March Is, specific ceilings
have been placed on meats and are
now being put on virtually every
other kind of food on a community
basis.
Fresh fruits and vegetables, ac-
cording to the bureaus cost-of-
living index, went up in price 49,
per cent during the month ended
on March Is. Markup ceilings were
placed on seven kinds of fresh vege-
tables based on February levels
The markups begin, however, at the
shippers level. Thus. even though
cabbage, one of the frozen" COM
modities, advanced 40 per cent ir
price during March, there is no evil
dence that ceiling prices were gen.
orally violated. Actually, the grow
er's price, which is as yet uncon-
trolled, continued to go up, ano
markups, even though in line with
OPA regulations, would continue tc
reflect this increase all along the
line.
AFL Sees Breakdown.
Meanwhile the American Fedora
ton of Labor last night charged
that the OPA's price-control pro.
gram has broken down and called
upon the Government to roll back
food prices to May, 1912. levels.
Through its executive council, the
AFL denounced the OPA for what il
called its timid policy on the prob
lens of black markets and grade
labelling
Despite repeated promises, the
council said in statement. there
has been no sincere and effective
attempt to roll back prices to a
reasonable level
Instead the Office of Price Ad-
ministration has created confusion
and chaos in the Nations food mar
kets by a continuous series of COM
plicated and contradictory rulings
which have made mockery of price
CONTROL the statement declared.
artificial Shortages"
In fact the giddy policies of the
Office of Price Administration have
made it possible for profiteers tc
create artificial food shortages II
basic commodities and to reap un.
considerable profits through black
market operations"
Abandonment of grade labelling
the statement asserted, was "one
of the most outrageous surrenders
on the part of OPA to chiselers
and price-gougers."
This necessary device for the
protection of consumers was orig
inally basic policy of OPA,' it said
But this agency did not posses:
the character and courage to de.
fend its own convictions and the
public interest Cringing in the
face of criticism from selfish in
terests and their congressional
spokesmen, the OPA meekly gave
up without a fight The result, il
added. will be the deterioration o1
the quality of canned goods pur-
chased by the public, along with
higher prices"
The statement explained that the
council insisted on the May, 1912
standard of prices, because wages
have been tied to the cost of liv-
ing then prevailing through the
economic stabilization program"
1t explained further that it in
dorsed limited Government subsidie.
to check increases in food prices, y
because that system proved effec-
tive in practice in Great Britain,
where price control is an acknoWl-
edged success, even though it has
not been accompanied by Govern
ment wage control"
OPA Collapse Forecast.
Stern criticism of OPA policies
also came from the American In
stitute of Food Distribution of New
York which forecast the collapse of
the agency within the next two
months. The institute said the OPA
has now been widely discredited.
Breaking down its figures, the