Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-03-14
Cotton Price Control
Program Dooms 0PA,
Thomas Declares
BY the Asseeiuted Press

An unprecedented OPA orde
designed to nip rising cottol
clothing prices shaped up toda,
as Senator Thomas, Democrat
of Oklahoma predicted the &C
ton may cost the agency its life
Meanwhile, the Government or
dsred garment producers to hustl,
to market their supplies of scare,
shirts, suits, trousers. underwear AMI
women's stockings, both nyion ane
rayon.
And q Civilian Production Admin.
istration official reported an agree.
ment which he said will "substan.
italy increase" output Of rayor
hosiery, now almost as hard to finc
as nylons.
Aimed at Speculation.
The OPA order. being prepared al
tie direction of Sterilization Chief
Bowles and to be issued probabl,
today or tomorrow, will require q
bigger down payment on cotton pur-
chased for future delivery. The
purpose is to. curb speculative bid
ding for cotton, which Mr.. Bowles
said is encouraged when traders can
make purchases with 4 very small
cash deposit.
This. sort of bidding, Mr.. Bowles
said, forces up textile prices and
eventually the cost of clothing. And
that, he added. has got to stop.
Mr.. Bowles first asked leading
cotton exchanges to boost margin
requirements voluntarily. He an
nounced last night they had refused.
So he instructed OPA to order an
increase under terms of the Price
Control Act.
Aides Of Mr.. Bowles said this was
the first time the price control legis-
lation had been used for this pur-
pose. They said the law gives OPA
authority to regulate Speculative
and manipulative" market practices.
Congress Bloc Forecast.
Senator Thomas, chairman of the
Senate Agriculture Committee, pre-
dicted the Bowles directive will lead
Congress members from cotton,
wheat and corn States ito pool their
efforts to prevent any extension OF
OPA." Legislation is pending to
continue the agency through June,
1947.
Senator Thomas said that obvi-
ously Mr.. Bowles and OPA Admin
istrator Paul Porter intend to keep
the farmer from getting a square
deal"
This ORDER" he told a reporter,
will stop production of a lot of
agricultural stuff next year. Farm
ers will go to town instead and get
the high wages the administration
Is forcing for industrial workers.
"OPA's policies have stified pro-
duction, I can't vote for continued
stagnation. I don't know where
they'll get the votes to extend it,"
The price of raw cotton has risen
about 4 cents pound since last
August. Mr.. Bowles said that "in
this situation I have no choice but
to employ and exhaust at the legal
means at my command" to stabilize
prices for the commodity.
Down Payment Raised,
He ordered OPA to flx a down
payment requirement of $50 a bale,
on the basis on prevailing prices for
cotton. This would increase $40 q
bale for every cent or fraction Of a
cent pound prices jumped.
Current margin requirements are
$40 a bale on the New York Ex-
change, SIS In New Orleans and
$40 in Chicago.
The order to garment manufac-
turers. issued by the Civilian Pro-
duction Administration, prohibits
producers of scarce apparel from
keeping on hand more than a 80
day supply.
CPA said the measure was put
into effect because of reports that
some manufacturers have been
holding back large stocks" of gar
ments in great demand. The agency
predicted the order will release a
"sizable" supply of clothing to retail
stores Immediately.
Rayon Supply to Rise.
On the bright side as to rayon
hosiery, a CPA official said yarn
producers had agreed to supply
hosiery producers with about $780,
900 pounds of fabric month, start
Ing in April.
This, he said. is considerably more
than they have been getting since
ALLEGATION controls were lifted short
ly after the war ended. He added
that rayon manufacturers had been
channeling most Of their production
to other apparel in the expectation
nylon output would cut demand for
rayon stockings.
Meanwhile, the OPA got congress
sional encouragement for its drive
against black markets. The House,
by a voice vote, late yesterday APP
proved a compromise with the Sem
ate giving the OPA an additional
$1,000 900 for its campaign against
black marketeers.
The legislation awaits Senate &C
ton, probably today, before going to
the White House.
New Orleans Seeks Ruling
On Legality Of Cotton Order
NEW ORLEANS, Mar. IA P.-
The New orleans Cotton Exchange