Evening star., 1946-07-12
OWMR Statement
On OPAHeId FuIIocy
Defense of Presidents Position
On Prices Called Propaganda
Bv David Laurence

By David Laurence
After lengthy piece OF propaganda
argument defending the Presidents po-
sition on the OPA bill-something that
hardly belongs in a document which
processes to give an account OF what
has been happening in reconversion--
the report of the Office of War Mobili-
zation and Reconversion just issued
makes this amazing statement:
Steadily rising and sustained pro-
duction requires: An assured supply OF
labor at foreseeable cost, an assured
supply of materials at foreseeable cost,
and an assured market for the products
of industry.
Under stabilized prices we are guar
anteed all three of these necessities-
labor, materials and markets. Under
rapidly rising prices-which we would
ertainly have without adequate price
controi-we are guaranteed none"
Certainly the first sentence is cor
rect, but the second sentence Is fall
lacy.
Labor Costs Uncertain.
Unquestionably there would be sus-
tanned production if business had IAN
assured supply of labor at foreseeable
cost" Indeed there would be unex-
ampled prosperity, But how can busi-
ness and industry today know what
their labor costs will be? No labor
union of any size has pledged itself to
maintain present wage levels for any,
thing but q few months. Union con-
tracts longer than a year are rare be-
cause unions refuse to make them, and
almost all contracts contain clauses
which furnish excuses for reopening
wage provisions on go days notice.
Does anybody who knows anything
about the operations of business think
that by stabilizing prices there is a
guarantee" of an assured supply OF
labor "at foreseeable cost? Quite the
contrary Is true. The refusal of the
administra ton to continue to stabilize
wages and salaries, as was done during
/ the war, and the refusal of labor lead
! ers to accept reasonable adjustments
since VI day have made 1t impossible
| TO fOreSee labor costs.
Labor unions are arbitrarily and
carpriciously using the collective bar
| gaining power granted them under the
| Wagner Labor Relations Law. They
have been forcing up costs SO rapidly
! in the last few months that many small
businesses are closing up and many more
| will have to be liquidated before 1946 Is
ended. There simply is no way to meet
the unending demands of a monopolistic
group which recognizes no restraint on
wage levels and uses the threat of costly
strikes as a means to enforce its de-
: mands.
Rules of Fair Play.
President Truman refused to apply
the rules of fair play to collective bar
gaining when he vetoed the Case bill.
He encouraged the present wage infla-
ton and now, when industry wants it's
costs covered in prices. as provided in
| the Taft amendment, the President OF
the United States seeks to make a po-
litical issue out of it by denouncing the
author of that amendment.
This is just plain. ordinary politics
Inc lnnatlon ABOUT which so much has
been written is not coming It is here.
The only controversy is as to who Is
responsible and it begins to look now as
If Mr.. Truman may have deliberately
killed the OPA in an attempt to build
up an alibi for the confusion caused
by his own imitation policies.
There can be no effective price control
without wage control. Price control Is
supposed to be justified with respect
to shortages until supply can catch up
with demand. But the shortage of man
power during the recent reconversion
months was nevertheless exploited to the
utmost by the labor union leaders. who
were aided and abetted by the admin
istTation
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