Evening star., 1946-08-25
0PAActstoCurb
Rise in Prices,
Pay Demands
Ceiling Enforcement
Pledged to Avert
New Labor Crisis
BY the Assoeio,ed Press

Inc Government yesterday
patched up its battered price
control defenses for fight
against climbing prices and
threatened new wage-price up
heaval.
OPA drafted regulations, de-
scribed as very rigorous" to hold
down price increases under the
BarkleyTaft amendment to the
new price law.
Price Administrator Porter prom
ised the toughest program yet" OF
meat price enforcement to prevent
the black market from nullifying
the rolled-back meat ceilings which
go into effect September 9.
A demonstration of firmness on
the price line is imperative, most
officials agreed, If angry labor Is
to be dissuaded from a new outburst
of higher wage demands and strikes.
AFL Aroused by Pay Denial.
AFL's wrath was aroused anew
by three decisions of the Wage Sta
bilization Board Friday refusing
wage increases for AFL seamen.
CTO already has served notice that
labor peace cannot last if living
costs go up while the administra-
ton continues to sit firmly on the
wage lid.
Reconversion Director John r.
Steelman continued a series Of
weekend conferences with members
of the Wage Sterilization Board
and others in quest of solution
to the pay stabilization problem.
The future of, the board itself was
in doubt, because it has no control
over wages in industries where price
ceilings no longer apply.
Robert J.. Watt, AFL interna-
tional representative and a member
OF the stabilization board, declared
in a broadcast last night that 80
far as the Nations workers are con-
cerned, the price squeeze is aggra-
waited by the Government rigid
freeze of wages"
Hope for End of Controls.
Under the circumstances, the
AFL has become completely dis
illusioned with bureaucratic control
of prices and wages" Mr.. Watt
said. I'VE look forward anxiously
to the day when such controls can
be wiped out entirely"
1t became apparent, however, that
OPA plans no great flood of price
increases from the hotly debated
Barkley- Taft amendment to the new
Price Control Act, one of the Con-
gressional issues on which OPA all
most foundered.
OPA expects to issue next week its
Interpretation of this amendment,
which requires the agency to grant
1910 profits on manufactured items
instead of the lower 1868 earn
ings yardstick which previously ap-
piled.
Some Firms Discouraged.
ooiiC IlotiliIls anu tS6llle llTIIlS,
after an advance peek at the, pro-
posed showings of proof and eligi-
bility required to get a price in
crease, have indicated they would
not even attempt to qualify.
One tentative draft of the regula-
ton has come to light. 1t probably
will be altered before issuance, but
not greatly.
The draft would call for a mass
of statistical data on costs, prices
and earnings of an industry for the
past year, for 1910, and for 1868.
In order TO start proceedings for
an increase, the Industry Committee
must show that it represents rs per
cent of the Nations total output Of
product.
To Interpret Provision Rigidly.
OPA indicated it would interpret
rigidly the Barkley-Taft provision
that no increase need be granted
on product if a rise in its pro-
duction would cut into the output
of some other equally needed prod
uct.
OPAs draft regulation said the
Government would take into ac-
count the availability of manpower,
materials and plant facilities. This
might rule out many price increases,
in view OF present acute shortages
of materials and the looming short
age of manpower by the end Of
this year
The law also states that no price
increase need be granted if "a rea-
sonable" profit already is being
earned and if the increase would
not bring about added production.
OPA's Interpretation says that such
production increase must amount
to Is per cent within six months.
Other Hurdles to Be Cleared.
Various other hurdles would have
to be surmounted An OPA spokes-
man said the regulation would be
"just as stiff" as the standards an
nounced yesterday for removing
commodities from price control.
Some trade informants said 1t
would be sitter.
OPA Administrator Porter, in his
weekend radio broadcast, told con-
1See PRICES. Page A-6)