Evening star., 1946-02-15
Texts Of Sterilization Order and Poy-Pice Plan

continued stabilisation of the
national economy during the
transition from ,oar to peace:
i BY virtue of the authority veste,
in me by the Constitution and stat
utes of the United States and par
ticularly by the First War Power
Act OF 1941, the Second War Pow
ers Act of 1912, as amended, an,
tthe Sterilization Act Of 1912, 81
amended, and for the purpose O
maintaining the sterilization Of tn,
economy In the present emergency
it is hereby ordered.
i /. For the duration of the ex.
isting emergency, all department,
and agencies of the Government
shall, in any matter affecting thu
stabilization of the economy ir
which they have discretion in the
use OF their powers. exercise such
discretion in such manner as will
best promote the continued sta.
bilization of the economy. It is the
policy of the Government, in order
SO far as possible to prevent price
increases, that there be prompt ans
firm enforcement, during the pres
ent emergency, of Government con-
trolls over scarce materials and ia.
cilities.
! 2. (a) Notwithstanding the pro-
visions of Executive Order 9599 oi
August 18, 1945, as amended, ano
of the regulations issued there
under, the price administrator
shall promptly provide for the ad-
justment of price ceilings in any
case in which he finds that an in
dustry is in position of hardship
as consequence of an approved
increase in wages or salaries, as
defined herein. An industry shall
be considered to be in hardship if
after taking the entire amount of
such wage or salary increase into
consideration, the administrator
finds that the industry's current
ceiling prices will leave it in an
overall loss position or in an earn
ings position requiring adjustment
on the basis provided in this Sec
ton.
Shall Develop Standards.
(b) The adjustment to be pro-
vided shall be such as, in the judg-
ment Of the price administrator
will be sufficient, for the IL months
following the adjustment, to en-
able the industry, unless operating
at temporary low volume, to earn
an average rate of profit equal as
nearly as may be to the rate of re-
turn on net worth earned by the
industry in the peacetime base pc
riod applicable to that industry,
and, in the case Of commodities
which are the subject of special
statutory requirements, to a rate
Of return sufficient to satisfy such
requirements. Except to the ex-
tent necessary to reflect the abnor-
NAL costs and reduced earnings in
cident to temporary operation at
low volume, in no case shall the ad-
ministrator provide an adjustment
insufficient in amount to prevent
loss operation at the time Of the
adjustment.
(c) The price administrator shall
develop standards of adjustment
consistent with the purposes of this
order to be applied in the case of
an industry-wide action affecting
an industry operating at temporary
low volume.
I'D In those cases in which the
price regulations provide for the
establishment or adjustment of
ceiling prices on an individual-firm
basis the price administrator shall
establish such standards of adjust
nsent as in his judgment are ad-
ministratively workable and con-
sistent with the purposes of this
order. He shall establish similar
standards to be applied in the case
of the establishment or adjustment
Of rent ceilings.
(e) The stabilization admins
traitor shall, by regulation or order,
establish such standards as in his
judgement are administratively
workable and consistent with the
purposes of this order for determin-
ing the extent to which wage or
salary increases in excess of the
standards for approval Of such in
creases prevailing prior to this order
may be used, in the case of products
or services being furnished under
contract with a Federal procure
ment agency, as basis for increas-
ing costs to the United States.
May Specify Glasses.
3. (a) The National Wage Sta
bilization Board or other wage or
salary stabilization agency having
jurisdiction with respect to the
wages or salaries involved shall ap-
prove any wage or salary increase,
or part thereof, which it finds is
consistent with the general pattern
Of wage or salary adjustments
which has been established in the
industry or local labor market area,
between August 18, 1945, and the
effective date of this order, or, where
there is no such general pattern,
which 1t finds necessary to eliminate
gross inequities as between related
industries, plants or job classif1ca-
tions, to correct substandards of
living, or to correct disparities be-
tween the increase in wage or SAL
ary rates in the appropriate unit
since January, 1941, and the in
crease in the cost of living between
January, 194l, and September, 1945.
The board or other designated
agency shall have authority, with
the approval of the sterilization
administrator, to establish special
standards for approval of wage or
salary increases, differing from the
foregoing general standads, to be
applied in particular industries or
classes of cases if it finds that such
action is necessary to effectuate the
purposes of this order.
(b) The sterilization admins
traitor may, by regulation, specify
classes of wage or salary increases
If