Evening star., 1946-06-25
|Conferees Give
Another Yeart 10
Curtai|ed.0PA
Compromise Measure
May Foce First Test
In House Today

The first test may come in the
House today on the one-year ex-
tension of OPA, with many o1
its teeth pulled, which came out
of a joint conference committee
shortly before last midnight.
In the final settlement, the ad-
ministration got rid of the far
reaching Senate sections that would
have ended all price control Sunday
night on meat, poultry, dairy prod
ucts, milk, gasoline and tobacco.
The House members yielded to
the Senate, however, on creation
of an independent three-member
board, which could override the
price administrator and Secretary
of Agriculture in deciding when
controls should be lifted on any
commodity.
One other vital issue-the con-
tinuation of subsidies to keep down
retail prices-Was compromised, with
an allotment of $1,000,000,000, to be
available until next April.
Must Be Ratified Quickly.
With price control due to end at
midnight Sunday, the settlement
worked out by the conferees must be
ratified by both houses and signed
by the President before that time.
Chairman Spence of the House
Banking Committee today expressed
belief that President Truman will
sign the compromise bill. In his
opinion, Mr.. Spence said, the bill
''iS workab BILE"
The Kentuckian, who has battled
for months for continuation of q
strong price control law, made this
statement to neWsmen as the House
convened two hours earlier than its
usual noon meeting time for ses-
sion which probably will see a show
down vote on the OPA compromise
Sees Approval by House.
He also voiced confidence the
House will approve the compromise
Although the bill saves the life OF
OPA. many of it's provisions are de-
signed to raise the price level all
along the line, from the producer to
the retailer. The majorities in both
houses supporting these amendments
are going on the theory that higher
prices will stimulate production. and
that when shelves begin to fill up
with goods, supply and demand will
keep prices within reason
The out voted administration
forces in both houses challenge this
reasoning, and predict that the bill
win increase the momentum of the
inf1ationary trend, already apparent
in price and wage increases.
Taft, Millikin Refuse to Sign.
The compromise was reached
after nearly four hours of closed
door negotiation, but even as it was
announced cloud hung over it,
with the statement of Senator Taft
Republican of Ohio, that he and
Senator Millikan, Republican OF
Colorado, were not signing the re-
port
II they should fight the agree
ment in the Senate, the measure
might be forced back into confer
ence. When the bill was going
through the Senate originally, ad-
ministration leaders avoided a rec
ord vote on the amendment, which
the conferees have eliminated, end
ing all controls on meat, poultry
dairy products, gasoline and to-
bacco. The amendment had strong
coalition support, and roll call
vote in favor of it would have made
1t harder to abandon the amend
ment in conference.
Before last nights meeting the
conferees already had agreed to
amendments intended to allow pro-
ducers, professors and manufacturers
to use the period from October to
Is, 1941, as the base price period, and
add the average increase since then
in unit costs. The dollar amount OF
such cost-increases were to be passed
along to all other sellers of the
product. Last night the conferees
modified this to allow distributors
wholesalers and retailers the per-
centage mark-ups and discounts
which were in effect January l OF
this year.
The compromise bill leaves rent
control unchanged.
Truman's Stand Uncertain.
Even if the conference bill wealth
ers the journey through the House
and Senate today or tomorrow, one
more big question mark remains
will Mr.. Truman sign it?"
Although Senate Majority Leader
Barkley continued last night te
avoid speculation on what the Presi-
dent will do, he said he will urge the
Senate to approve it as "the best
bill we can get under the circum-
stances"
Some close observers of the situa-
ton believe the President will sign
it with an expression of dissatisfac-
tion over it's limitations, rather than
risk having all controls die.
Bombs BIust Kills Eleven
p0hHE limo o5 I'D, E,eye,, nor
sons were killed yesterday when an