Evening star., 1946-06-10
Drastic 0PA Chances
Predicted as Senate
Takes Up Measure
BY the Assoeiossd Press

BY the Asseeioisd Press
The future of OPA took on new
uncertainty today, with lawmakers
of both parties freely predicting that
the Senate will vote drastic changes
in the proposed bill to extend price
controls beyond June 80.
The legislation, already heavily
amended by the Banking Commit
tee, reached the jufApof spot on
the Senate's calendar, evidently fac
ing even harsher treatment on the
floor.
Majority Leader Barkley said he
hopes to bring the measure to a
final vote this week, sending 1t back
to the House.
Senators in touch with the situa-
ton say that action on the OPA bill
may decide whether Sterilization
Director Chester Bowles and Price
Administrator Paul Porter bow out
OF their present jobs.
Both Oppose Bill.
Mr.. Bowles and Mr.. Porter have
let it be known that they consider
thoroughly unsatisfactory the much
amended bill approved by the Sen
ate Banking Committee, and they
have told friends they will resign
rather than administer a highly re-
stricted sterilization program.
President Truman could be ex-
pected to ask them to remain in
Government service, possibly with
other appointments. Friends say he
might want them to fill two Of the
three posts Of economic advisers who
may take over much of the work
John w. Snyder performed as re-
director.
Senator George, Democrat, of
Georgia voiced the opinion the OPA
bill will be rather badly battered
before it gets through.
Wherry Predicts Changes.
Senator Wherry, Republican, of
Nebraska, the minority whip, fore
saw adoption of a manufacturers
price margin amendment, along
with other changes.
And Senator Pepper, Democrat, Of
Florida, an ail-out supporter of the
present price law, told a reporter
that enactment Of the bill as 1t
emerged from the committee would
put us back on the twin horses of
isolation and reaction which we
rode after the last war"
I'm for continuation of OPA
without any crippling amendments, II
Senator Pepper said. II think the
vote on this bill is going to be the
decisive straw, indicating the way
this country is going.
IF we cut the price control law
to pieces, it will mean, in my opin-
ion, that we are headed for infla-
tion. followed by depression.
1T will lead to the same results
as occurred after World War I. ex-
cept that We'll have our 1929 SOON
er than the last time, and likewise
our 1892"
Officials Assaid Bill.
The bill came in for heavy criti-
cism over the week end from sta
biliZation officials and from a four
member minority of the Banking
Committee which included Chair
man Wagner. Senator Wagner de-
clared in a minority report that
adoption Of the committee bill
would write "a death sentence for
effective price, wage and rent sta
biliZation"
The measure proposes extending
price control one year, to June 30
1S47. but with the powers OF the
price administration considerab bly,
trimmed.
Meat, poultry and dairy products
would come out from under price
ceilings the end of this month. Sub
sides would be cut from 50 ,OOO, ,OOO,- :
900 to $1,100, 900 600 and payment 81
food subsidies would be forbidden
after next May /. No new subsidies
would be allowed, nor could ceilings
be imposed on items not now under
price control.
Appeal Board Proposed.
The Secretary of Agriculture would
be given authority to say what farm
commodities were in short supply
and could be controlled. An inde-
pendent decontrol board could over
rule the price administrator when
he denied industry appeals for lift
ing of controls on specific items.
Dealers in automobiles, radios,
household appliances and similar
goods scarce during the war would
have to be allowed their prewar dis
counts and markups.
Senator Wherry predicted the
Senate would accept an amendment
by Senator Taft, Republican, of
Ohio, which would allow manufac-
turers their 194l prices plus the
average unit cost increase in their
industry. The amendment lost in
committee on an 8-to-8 tie vote.
Senator Capehart, Republican, of
Indiana, meanwhile proposed three
more broad changes in the price
control bill. He intends to press for
these additional amendments:
l. End all subsidies June 80, 1916
2. Apply a 4O-20-40 formula fol
lifting price controls-40 per cent
of the controls, measured in dollar
volume, to 60 by December 31-2(
per cent more in the first quarter Of
1947, and the last 40 per cent BY
June 80, 1947. (
3. Cut out forced cost absorption
in all industries.