Evening star., 1947-04-11
Initiation Peak Pasf,
WoIeoit Says, Prices
Hinge on Production
BY rs. Asseeictsd prs.s

BY the Assoeicied Press
Representative Wolcott, Re-
publican, of Michigan said today
"the peak Of imitation has
passed" and the only barrier to
lower prices lis a slowing up of
production as consequence of
strikes. a1as1 strff,9
The Michigan Republican, who, a.
chairman of gthese House Banking
COMMITTEES, manages legislation
dealing with the Nations economy,
made the statement In commenting
on President Truman's declaration
yesterday that II prices are not
brought down wage increases will
be justified, and that 1t was the
responsibility Of business to hold
prices down.
Another Republican, Senator
Flanders Of Vermont, former head of
the privately financed Committee en-
Economic Development, said wage
increases now would only make
further price increases" He added:
"This would aggrayate the situa,
ton and would do no good. 1t is
to industry's own good to bring
prices into line, to prevent q recess
sion that sa1ntany seem to fear"
Charges Republican Sabotage.
Representative Spence, Democrat
Of Kentucky, whom Mr.. Wolcott
succeeded as BAnking Committee
chairman IN January, said he shares
the Presidentss. concern over rising
prices, adding IF the Republican
Party hadn't sabptaged price con.
trolls, we wouldn't have had this
situation. Now prices have gotten
out OF control.
MIR. Truman, at his news confer
ence yesterday, invited business to
get together and reduce prices vol
unfairly, without fear OF prosecu-
ton under the antitrust laws. He
agreed with a reporter that 1t might
be possible to prosecute under the
antitrust laws If businessmen de-
cided as competitors to lower prices.
But he added that II they con-
suit the Justice Department first,
he doesn't think any prosecutions
will result.
Attorney General Clark followed
this up with a statement that the
antitrust laws "do not interfere with
voluntary. price reductions"
While acknowledging that price
fixing arrangements among COM
petitors normally are illegal, the At
torney General said he knows OF no
industry inwhich 1t Is necessary Tor
competitors to get together to cut
prices. %
Promises Especial Study"
If any such case should arise, he
added, the Justice Department Will
"give it special study"
Mr.. Wolcott said he cannot recon-
cile Mr.. Trun1an's price statement
with predictions by many econ
onists "that we are going into q re-
cession, because We are saturatlng
certain markets for consumer goods
by overproduction."
1--WE reached the peak OF imitation
q few weeks ago." MIR. Wolcott said
without celebrating on that point.
From now on prices will be coming
down. The actual value of labors
take-home pay will be increasingly
greater, The only thing that will
prevent this is a slowing up OF pro-
ductior as consequence OF strikes. :
The United States Chamber Of
Commerce echoed this view in .
statement which, while agreeing
with the President that 'if prices
continue to get out of hand severe
damage may be done to our econ
on1y," added:
"It is unfair to hold business solely
responsible for the sharp rise in
prices that has taken place In recent
months. Other groups In the econ
orny must share the responsibility.
Points to Farm Policy.
"The Government on the one hand
urges price reductions In consumer
goods, but discourages price reduc-
tiofis for farm commodities.
"Labor's successful efforts in OBJ
tanning wage increases have been
reflected In the price structure. It
Is now demanding second round
of wage increases.
Where supply is overtaking de-
mand, some prices already are be-
ginning to fall. Stability In prices
and lower prices-will be attained
most effectively by keeping produc-
tion at full tide. We cannot afford
another round Of strikes"
The Nations three largest farm
groups announced they were calling
on industry labor and Government
to join with farmers in q concerted
attempt to halt the upward spiral
Of prices.
In a three-day meeting which
ended yesterday. leaders of the Ma
tional Grange, the American Farm
Bureau Federation and the National
Council of Farmer Co-operatives ex-
pressed apprehension over the pres
ent inf1ationary trend. The group
commended businessmen who have
announced price cuts and urged
others to follow their example.
Retailers Urge Cuts.
A statement that "the President
is right" came from Walter Morrow,
president of the American Retail
Federation. He added:
I'VE ate not going back to any
thing like prewar price levels as a
lot of people expect as a result OF
the clamor. But 1t is possible to
shake lot of water out of specific
areas of the price structure
item by item and category by
category"
In the meantime the Bureau of
Labor Statistics reported that, for
the week ended April 5, average
wholesale prices of food decreased
1.3 per cent, but commodities other
than farm products and food rose
3 per cent.
The bureaus index of commodity
prices in primary markets dropped
to 1888 per cent of the 1928 aver
age, which was 36.4 per cent over
the figure a year ago.
Convicted Youth Is Linked