Evening star., 1946-02-15
5000 a ton for highly specialized

| 5000 a ton for highly specialized
TYPES.
Oficials who helped draft the new
policy said 1t should not be ex-
pected that 1t will do away with
wage disputes. In some quarters it
was feared the plan might breed
even greater unrest. Along this line,
| 1t was pointed out that several mil
lion organized workers have settled
wage demands for less than the
Government now prescribes for
workers involved in the major dis
putes and strikes. Under the policy,
the amount the millions agreed to
earlier will be their reconversion
wage ceiling. 1t was feared there
will be great pressure to reopen
contracts in an effort to get larger
wage increase.
Sterilization Board Approval.
So-called voluntary" increases,
ones which do not necessitate higher
prices, may be granted, as under
old policy, without approval or sub.
mission to the Wage Sterilization
Board. But, unless board approval
Is obtained, the employer is pre-
cluded from using the wage boost
at any future time as an argument
Tor higher prices. Because Of this.
1t was held likely that the tendency
will be to submit all agreed-to wage
boosts to the WSB.
WSB will measure all requests for
wage raises against the yardsticks
provided by the new policy. Here's
the way the system will work:
Assume an automobile company
granted a wage increase of 18 cents
an hour. 1t probably would be ap-
proved by the Sterilization Board.
because that is the general paw
increase pattern set in the industry
since vi day.
Suppose, then, that the firm grant,
ing the 1S-cent wage increase finds
that 1t faces financial hardship
as result Of the increase.
Under these circumstances. the
company could apply to oPA for a
price increase. And OPA would act
on the application in this manner:
II the industry were operating at
low production volume which
seemed likely to continue for some
time, OPA would be required to
grant price increase which would
enable the company to realize i'm
mediately and for the next IL
months the industry's average rate
OF profits during 1868.
If, on the other hand, OPA de-
cided that the company's reduced
earnings were due to temporary
operation at low volume" and that
greater production and lower costs
could be expected soon, the agency
could authorize a smaller price
boost-one that would not imme-
diately boost earnings to the 1885,
SO rate.
In the latter case abnormal or
so-called bulge costs resulting from
reconversion would not be taken
into full account in fixing the price
increase. The theory behind this
is that, with the likelihood of volume
production soon, there is no justi-
flcation for price increase which
eventually might return greater
profits than those of 1868.
Congress Reaction Divided.
The reaction in Congress to the
new policy was divided. Some men,
bers saw infiationary threats in the
program. Others thought the trend
could be controlled.
"Of course this is in the direction
OF imitation" Senator Brewster, Re-
publican, Of Maine told a reporter.
Every one will have to move in
now on wage increase"
Senator Lucas, Democrat, of ILL.,
nois held that any wage and price
increase might be somewhat infla-
tionary" but believed such a move
ment could be held in restraint.
Representative Clark, Democrat,
Of North Carolina, said "I cannot
know all the facts about the prob
Iems confronting the President that
are so vital to the economic security
Of the country, but he is making a
valiant fight and deserves support"
House Minority Leader Martin
said, 'I hope this new sterilization
policy does better than the old one"