The Wilmington morning star., 1946-07-22
MORE ABOUT
TRUMAN
FROM PAGE ONE

dent Truman" e
ceilings Still OFF !.
The compromise finally arrived
at last night by a House senate
conference committee, breaking
five-day deadlock, does not e
store price ceilings Immediately
on meats, dairy products, grams
cottonseed and soybeans and 1ooos
and feed products MADE ifo
them.
However, it carries a three-man
board with higher authority IMAM
FOPA to determine whether tnese
items shall be re-contcolleo. II
this board fails to act by August
20. OPA then will have authority 70
restore the ceilings at its own
election.
Opinions Differ
There was a difference OF opinion
among the conferees whether the
bill they drafted would permit the
control board to restore prices on
these food items before August 20,
under any circumstances. They
will have another look at the meas
ure tomorrow on that point. before
tossing it to the House and Senate.
Tue board would, however, have
authority to restore ceilings, prior
to August 20 if it sees fit, on pouL
try, eggs, food and feed products
made from them, tobacco and its
products, and petroleum and its
products.
Middle Ground
This was the middle ground on
the troublesome food issue ar
rived at after agents for the House
vigorously insisted on erasing from
the bill all the Senate bans on
further price controls for major
market basket items.
AS the bill W illgo into the House
and Senate Tuesday for showdown
votes, here : the major pro-
visions:
/. A years continuation of modl
fled price control, and rent au-
thority unchanged. OPA would have
all its old power to set rent cell
ings, since the compromise knocks
out d Senate bill provision that
would have eliminated federal con-
trolls where states had entered the
rent field.
New Price Formula
2. A new pricing formula that will
mean higher prices of many manu-
factured articles. This formula re-
quires that producers, manufacture
ers and professors ceilings be
placed high enough to take care
of the average increase in costs in
their industry since 1910, although
OPA is allowed some discretionary
powers in making such increases.
This was substituted for a provi-
sion in the vetoed bill, authored by
Senator Taft R.-Ohio) which Mr..
Truman labelled as the "most
damaging" section of the measure.
Supply And Demand
3. A stipulation that price cell
ings be lifted when supply of an
article or product comes into
balance with demand and normal
competitive forces are restored.
4. Removal from OPA of the
power of final determination when
such items shall be decontrolled,
lodging this authority in the three
man board to be appointed by the
President subject to Senate con-
firmation. This is the same board
that will determine whether meat
and the other food items shall be
placed back under controls. Agri-
culture Secretary Clinton P. Arder-
son is given a strong voice in de.
termining when food items shall
be decontrolled or when food cell
ings shall be altered.
Cost Plus Out
5. What the president called a
"cost plus" provision for profits
OF automobile and appliance deal
ers, and an end to OPA's maximum
average price regulation intended
to force manufacturers to produce
low price clothing.
o. hetrOactlVlty OF the act to
June 30, but with the proviso that
no act or transaction occurring
subsequent to June 80 and prior
to the date of enactment of this
act shall be deemed to be a viola
ton" of price controls.
z. A requirement that in establish.
ing maximum prices applicable to
wholesale or retail distributors -
on manufactured articles or agri-
cultural products - OPA allow
"the current cost of acquisition OF
any commodity, plus such average
percentage discount or markup as
was in effect March 81. 1916" This
would stop a large portion of OPA's
"cost absorption" program where
by distributors r required to &C.
cept lower profits so that not all
of higher manufacturing costs is
passed on to the consumer.
Whether new ceilings would be
those in existence on June 80, when
OPA expired. or whether they
would be fixed at some other level
would be left largely to OPA, but
the agency is required to make