Evening star., 1946-07-02
Small, Wyatt, Bow|es
Plead for Ceilings,
Attack Hoarding
BY the A.soeioisd Press

chiefs stacked 1reSh ammunltlOl
today for their battle to save OPA
Housing Administrator Wilson
Wyatt told the Nation and its law
makers by radio that the emer'
gency home-building program Il
doomed" to miss its goals unless
the price lid is put back on.
Civilian Production Administra.
tor John D. Small hurriedly drafted
steps designed to prevent "specula'
tive boarding" by business and a
the same time pleaded for firm
fair and reasonable ceilings Il
stave off imitation which he saie
would put a crimp in output o
needed goods.
Bowles Asks State Action.
Retiring Sterilization Directo
Chester BoWles appealed to Stat,
Governors to use whatever emer
gency power they possess to hal
reported wild price increases ant
heartless rent gouging in man.
scattered areas"
Mr.. Bowles, whose resignation be.
comes effective July 10, urged tht
Governors by wire to move fol
speedy State laws, If necessary. tc
freeze rents at June 80 OPA ceiling:
and protect tenants from unwar.
raEted evictions.
Even administration officials were
astonished at yesterdays IT zoon
in the Labor Departments spot
market index for basic commodities
This jump carried the index to ZOE
on the first OPA-less day. 971a pei
cent higher than when war broke
out in Europe.
The effect on retail buyers Of this
market explosion will be delayed for
weeks in most cases, although re-
ports Of price rises in meats and
other scarce foods in many cities
poured into the Capital.
Points to Speculation.
OPA Chief Paul Porter called at
tention last night to the sudden If
short-uved rise in stock quotations
and to climbing commodity prices,
terming them IAN ominous sign that
spectators already are placing bets
on imitation"
II think that they will find they
have put their money on the wrong
horse" he added.
He cautioned the public not to be
deluded If supplies of hard-to-get
goods may suddenly seem to be-
come abundant"
Any sudden flow Of scarce items
to market would represent only an
effort to capitalize on the present
situation by those who have been
holding back goods for higher CELL
ings, or none at ALL" Mr.. Porter de-
clared.
At CPA, Mr.. Small's staff worked
rapidly on three measures intended
to safeguard essential production In
the absence Of price control.
One would tighten Government
controls on the stocks which bust
ness firms may hold in inventory
The purpose is twofold Cd to pre-
vent the withholding of finished
goods from market in anticipation
of higher prices, and (2) to prevent
firms from quickly buying up and
holding raw materials as a guard
against price rises later on.
Another would extend import con-
trols to prevent scarce goods from
fleeing the domestic market, and
the third would prevent a seller
from squeezing priority purchaser
out of the market by charging him
more than other buyers.
UNLESS costs are kept within
bounds, production will be impeded," !"
Mr.. Small said. And production
all-out, sustained production-is the
only answer to the shortages which
are still with us almost year after
the end of the war"
Predicts 20 Per Cent Increase.
Mr.. Wyatt. forecasting a 20 per
cent increase in the cost of building
materials, told radio audience that
without price controls ut is certain
that we cannot start 100000 homes
and apartments by the end of 1947'
the Presidents housing goal.
without controls it is equally
certain that we cannot build homes
and apartments that veterans car
Afford" he added.
"If the country abandons price
control, it also abandons its figh'
against imitation. 1t abandons the
veterans housing program. 1t start'
lis on the road to a boom and {
bust, not only in housing but in th'
whole economy"
The talk was gloomy postscrip
to an otherwise glowing progress
report on the first five months o
the housing drive. Mr.. Wyatt sait
5000 homes were started in tina
period, "a per cent of this year
goal and the biggest volume o
building since the record year o
1925.
Builders still must adhere to tn,
sales price and rental ceilings i'm
posed by the housing agency on new
homes, in order to get construction
approval However, Mr.. Wyatt sale
these ceilings inevitably would have
to be raised If building material
costs rise as anticipated.
The price ceilings on new house!
are authorized under the Emergency
Housing Act whereas the OPA Law
controlled prices on building ma.
terials.
The National Association of Home
Builders leaped on Mr.. Wyatts re-
port almost before the ink was dry
asserting its optimism would mis-
lead veterans anxiously awaiting
new homes"
1t added that tens Of thousands
of the dwellings started are standing
unfinished.
The Governments failure to ex-
pand the production of building ma.
terials means that houses which
should be finished in three months
are taking nine months, said the
association statement. signed BY
Vice President Frank w. Courtright