Evening star., 1947-12-05
Senate 6. 0. P.
MayAsk Plan
Qualifications
ToConfer With House
Leaders in Hunt for
Anti-InfIution Laws
By the Associated Press

The Senate republican Policy
Committee decided today to at
tempt to work out with House
members a COP anti-inf1ation
program which may call for VOL
untary ALLEGATION of scarce cost
of-living items.
Chairman Taft told a news con-
ference that a meeting of Senate
and House leaders will be held next
week to determine whether ''two or
three" anti-inf1ation measures can
be pushed to final passage in the
special session of Congress.
He listed measures to extend eX-
port controls, regulate trading on
the grain exchanges and to curb
installment buying in this category.
The Ohio Senator said there was
discussion by the policy group Of
proposed bill under which Govern
ment would take the lead in at
tempts to bring about voluntary
agreements in industry to allocate
such critical products as steel.
Antitrust Exemption Necessary.
He said this measure would have
to contain clause exempting partic-
ipating businesses from the Anti
trust Act, as well as provision for
Government funds to conduct
campaign.
The question of whether such leg
islation would carry authority for
the Government to seek price-cut
ting agreements was left open, Sen
ator Taft said.
| Broadly speaking, ALLEGATION is a
method for dividing up, or allocating,
the national supply of scarce prod
uct. It was done during the war
with rubber, for instance, under reg
ulations which halted production of
those products Government agencies
considered to be least necessary and
limited production of others.
| President Truman's imitation
program asks that the Government
again be given limited powers to
allocate materials.
Chicago Banker Heard.
In addition to the Senate COP
groups decision, there were these
other major Capitol Hill develop
ments on the economic situation:
Edward Brown, president of the
First National Bank of Chicago, told
Senators the country can best de-
fend itself against another depres-
sion by more work, heavy taxes,
the strictest economy in all Gov
ernment activities, and a budgetary
surplus" He said the general
amount of taxes should not be re-
duced Gin this inf1ationary period"
Mr.. Brown was before the Senate
Banking Committee to oppose the
Presidents proposals to regulate
consumer and bank credit.
Undersecretary of the Interior
Oscar L. Chapman pleaded anew
that Congress give Mr.. Truman
power to ration and fix prices on
coal and oil should the need arise.
He testified before the Senate
House Economic Committee.
Controversy Avoided.
Senator Taft said the Policy Com
mittee lett open the question OF au-
thority for the Government to seek
price-cutting agreements because 1t
was clear that such legislation
might involve controversy, even
among the Republicans.
For that reason, he indicated, it
would have to wait until the regu-
lar session of Congress for consid-
Grafton.
The Policy Committee agreed,
Senator Taft said, that "it would be
a good thing" if the Republicans
could work out an imitation
program of their own. This would
be designed to counter President
Truman's 10-point proposals.
But Senator Taft noted that any
statement of principles first would
have to be agreed upon by the
leadership in both houses and then
checked back to the Republican
conference before 1t could become
final.
He said he hopes leaders can con-
fer early next week, check their
findings to the policy committees
by midweek and call for conference
action by the end of next week.
In furtherance of this program
Senator Taft said the Policy Cont
mittee agreed not to take up any
other LEGISLATION in the Senate. out