Evening star., 1946-07-26
Congress Heads BaIk
Al Tax Increase Plan
Il 0PA Controls Fail

Il 0PA Controls Fail
Congressional leaders ruled out
any tax increases today with q
firmness that indicated Presi-
dent Truman may have to look
elsewhere for the anti-inf1ation
weapons he said must be fash
ioned if revived price controls
fail.
In special message to Congress.
last night announcing that he hae
signed the new OPA bill with re-
lnctance," the President said tina
Sdefects" in the legislation and tn,
long delay in its enactment ma,
make necessary "sterner fiscal ans
monetary measures"
He warned that "a more rigorou.
tax policy will have to be consid
cred II other measures do not stav,
of the threat of initiation.
Bill Falls Far Short"
Mr.. Truman said the OPA bill
he signed falls far short" of hi.
hope for an act that would assur,
prices could be kept generally. stable
but that it does offer "sufficien
prospect of success" to warrant Civ
Ing it try.
If it does not prove to be enough
to prevent imitation, ne added, HI
will have no alternative but to cal
Congress back in special session t
strengthen the price control law ans
enact such fiscal and monetary legis
lation as needed to save us from
the threat of economic disaster"
In the face of the Presidents as
sertion, Chairman George of the
Senate Finance Committee told 8
reporter there will be no increase
In taxes.
Can't Raise Taxes.
Il do not think the suggestion tina
taxes can be raised in this period i.
a realistic evaluation of our present
position and I think that President
and the Treasury must know that,
the Georgia Senator declared
bluntly.
AS for the further Tightening oi
price controls, Senator Wherry oi
Nebraska, the Republican whip, sale
he thinks that if Mr.. Truman calls
the lawmakers back after they have
been home to talk to their constitu-
ents they will come back and wipe
the OPA off the map"
Even Senator Pepper, Democrat
OF Florida, who advocated revival
of the pre-July l OPA with all its
powers, said there is mot the slight
est chance of getting increased
taxes"
Neither, he said, could he see any
likelihood of accomplishing the
further reduction of Federal ex-
penditures." for which Mr. Truman
called in his message to Congress.
The naming of a three-member
decontrol board, possibly today
promised to start in motion the ma
chinery that the President said he
hopes will contribute toward keep
ing the American economy "on an
even keel until a flood of goods
makes further controls unneces-
sary.'
Mr.. Truman promised to appoint
to the board men in whose judg-
ment and fairness the Congress and
country will have complete conf
dence"
"No Packed Jury"
AS for the three-man decontrol
board the bill sets up with power
to overrule OPA, Mr.. Truman said
he was not opposed" to its creation
ito resolve difficult questions
of timing the removal of controls. -
He announced he will appoint men,
bers of the board in a day or SO
and that it will not be a packed
jury.
On of the boards first jobs will
be decision of whether meat, dairy
products, grains, cottonseed and
soybeans should be put back under
ceilings August 20. If the board
falls to act by that time, controls
automatically will be re-established
Earlier at his news conference
the Chief Executive said he would
choose from outside the OPA so
there would be no packed jury. He
added he had made up his mind
about two of the members but that
he would announce none of the
names until he had an acceptance
from the third.
On Capitol Hill there were reports
that Democratic Leader Barkley
had recommended former Gov.
Keen johnson of Kentucky as one
of the members.
Senator George said the Senate
will look over the nominations very
carefully before voting on confirm
ing them.
In his message Mr. Truman told
Congress that because of defects
In the OPA revival bill and its long
delay in enactment there will have
to be stricter controls over scarce
materials through priorities and
"sterner fiscal and monetary meas
ures."
Tax Study Demanded.
IF, despite such measures" Mr..
Truman said, imitation still threat
ems, consideration must be given to
the formulation of a more rigorous
tax policy. Such tax program
would, realize, be unpalatable at
a time when we are doing our ut
most to increase production, but If
1t is the only alternative to the
ravages Of imitation, we would have
no choice"
Earlier in the day the House
Republican Tax Committee had sug-
gested a 20 per cent cut next wear
in a statement contending that
there is AN imperative need for a
complete overhauling of our Federal
tax system"
In his message. Mr. Truman con-
tended that clothing prices will be
difficult to hold at reasonable levels
because of the new laws provisions.
And he said concessions had been to
special interest pressures" which
would force other commodities I'm