Evening star., 1947-08-14

increases by voluntary agreement
between tenants and landlords.
Mr.. Wolcott said a tenant should
not agree to IS per cent boost il
he does not believe it justified.
Senator O'Mahoney is a member
of the Joint Congressional Commit
tee on the Economic Report which
is scheduled to open it's own coast
to-coast inquiry next month into
rising living costs.
Perhaps it ought to be pointed
out" Senator O'Mahoney said, that
evidence before the committee shows
that the automobile industry. by
private understanding. is rationing
the output of automobiles. The steel
industry is rationing the output of
steel.
In each instance. products are
distributed according to the ratio
of distribution before the war.
Now the major oil companies are
undertaking to ration petroleum
products"
Senator O'Mahoney said he be-
lieVes there is no basis for any anti
trust action in connection with any
distribution agreements prompted by
scarcities. But the Senator added
Congress will have to decide
whether the Government should
wash it's hands of the dilemma and
allow big business to decide how
the products of this country shall
be distributed. or whether we should
undertake an intelligent program of
stimulating production. SO that
business users and individual con-
sumers will not be subject to ration
ing either by Government or busi-
ness"
Should Get Together.
Asked just what kind of a pro-
duction stimulating program he has
in mind, Senator O'Mahoney said
only that the problem could be
solved If businessmen and poll
ticians, separately, would stop try
ing to take advantage of one an
other"
THE trouble is he went on,
somebody always wants to put
somebody else in the hole"
Deploring what he called the in
lection Of political issues into the
price situation, Senator OMahoney
declared:
This is not a political question.
1t is an economic question. 1t cam
not be solved by political campaign
ing for the next presidential cleo
ton. but only by intensive study
now"
Senator O'Mahoney is known to
be critical of the joint committee S
decision to wait until next month to
begin its study into the rise of con-
sumer prices.
Senator Taft, Republican, of Ohio
chairman Of the group and widely
mentioned as an aspirant for the
COP presidential nomination, said
before he left for a Canadian vaca
ton that 1t would be difficult to gel
committee members together before
fall.
Look Into Profits.
Senator O'Mahoney said he ha!
no doubt that the committee. IN it!
forthcoming hearings. will be in.
terested in looking into the whole
problem of profits"
He said a study by the Na,iona
City Bank of New York shows this
the net worth of Is major fox
products corporations was s1,o88,
900 900 as of last July /. compared
with $993. 100000 in January. 1945
The study shows further, Senator
OMahoney added. that these same
companies annual rate of return
increased from 1872 per cent 70,
the first half of 1916 to 20S pei
cent for the first six months of this
year.
Il do not mean by this to express
the opinion that there is wide
spread profiteering," Senator O'Ma
honey commented, although I have
no doubt there Is room"
The Senator cited these principal
reasons for the increase in fcot
prices:
/. with eo,ooo,oo Americans en-
ployed, our people are eating more
and better food than ever before
Europe Needs Food.
2. Agricultural production in Eu-
rope has not been restored and mil
lions of people there would starve
without American exports"
Senator O'Mahoney expressed the
opinion that the joint committee
and the Justice Department., ir
carrying out Mr.. Clark's orders
could well work together to find out
what is happening to profits.
He noted that the National Asso.
,ciation of Manufacturers in com.
menting on Mr.. Clark's announce
ment said that Ito intimidate by
public charges against an infini-
tesimally few chiselers that all cur.
rent high prices are the result OF
criminal conspiracies is both absurd
and dangerous"
Senator O'Mahoney remarked
that the NAM would do much
better to cooperate with the Attor.
ney General to find any possible
conspiracy to raise prices. rather
than issue public statements de-
signed to impede him"