Evening star., 1946-04-06
Hot Debate in House
Faces Bill Extending
Price Control a Year
BY the Associotsd Press

The OPA bounced today from
the congressional frying pan
into the fire.
The bill prolonging the price
agency's life for year beyond June
20 headed toward red hot debate
on the House floor after the Bank
ing Committee voted far-reaching
revisions and curtailment of its
powers.
An OPA spokesman said the COM
mittee action, If sustained by the
House and Senate, would hike retail
prices on automobiles, refrigerators,
radios and many other items. with
consumer costs increasing by more
than half billion dollars this year.
Not As Bad As Feared.
Nevertheless, congressional friends
Of OPA said the drubbing the agency
got In the committee was not as bad
as they feared.
Representative Monroney, Demo-
crat. Of Oklahoma. a Banking Com
mittee member, commented:
THE bill brought out by the COM
mittee is not all that I wanted, but
it is better than I expected in view
Of tremendous pressure brought by
opponents of OPA. 1t would result
in some price increases, but I do not
beueve 1t is a break-through."
The committee brushed aside the
pleas for an early end of OPA made
by the National Association of Man
ufacturers, the United States
Chamber of Commerce and some
other business groups, and followed
President Truman's recommended
ton that the agency be continued
for full year beyond June 80.
Revisions Made in Bill.
But it wrote into the OPA extern
sion bill yesterday these far-reach-
ing revisions:
l. A requirement that OPA re-
store the retail profit margins it has
trimmed for large number of re-
conversion items-autos, refrigera-
tors, radios, etc. This revises the
OPA cost-absorption policy which
has required retail outlets to bear
a portion of the increased cost of
production by reduction of markup
or discount margins.
2. A directive that price controls
be liquidated in various lines as sup
ply comes into balance with demand,
with the gradual decontrol RESPONSE
bility assigned directly to President
Truman rather than to OPA.
g. A provision for early termina-
ton OF the Governments $4,000, ,OO0,-
600 annual subsidy program, includ-
ing payments to reduce consumer
food costs. This amendment would
slash subsidy payments in the next
fiscal year by Is per cent, or $780,
100000, and require the Government
to get out of the subsidy business by
June 80. 1947.
4. A repeater for OPA's maximum
average price policy by which the
agency forces manufacturers to pro-
duce low cost clothing.
Representative Outland, Demo-
crat Of California, a committee men,
Der, told newsmen these amend
ments "can be interpreted as saying
but one thing: The consumer be
damned!"
An OPA official estimated that the
revision of the cost-absorption pro-
gram, if finally made law, would
boost automobile costs to consumers
in the next II months by $500, ,000,-
600. OPA has cut the retailer dis
count on automobiles to 1875 per
cent. If the amendment remains in
the bill the agency would be required
to restore the discount to the prewar
"a per cent level.
The OPA spokesman, who would
not be quoted by name, was quick
TO emphasize that the amendment
would not affect cost absorption in
large areas OF manufactured goods,
particularly clothing.
the revised bill made no changes
in current OPA rent ceiling regula-
tions.
Speaker Rayburn scheduled the
House OPA debate to begin q week
from Monday. Some administration
supporters privately indicated con-
Germ that the bill will get rougher
treatment on the floor than it re-
ceived in c0nonnittee