Evening star., 1947-07-08
Grange Urges Labor
And Industry 10 Agree
On Pay-Profit Ceilings
sy ths A,soeioted Press

BY the Asseeioted Press
The National Grange sug-
eested today that labor and
major industrial Arms agree on
program of voluntary ceilings
on wages and profits as a step
toward lower prices.
The farm organization made this
nroposal as the American Fedora
ZION of Labor declared that ''the
teast-and- famine policy of indus
try" has pushed prices and profits
10 the brink of an economic recess
sion.
The Grange and the AFL laid
down their views in separate state
ments prepared for the Joint Con-
gressional Committee on the Eco
nomic Report. This group is study
ing suggestions on how to prevent
boom and bust swings of the Ma
tons economy.
Would Divide Margins.
Albert s. Goss, master of the
Grange, told the committee:
IF labor and industry in a num-
ber of Americas largest industrial
concerns would agree on program
in which a ceiling would be placed
on wages, and a ceiling on indus
trial profits. with all margins above
such ceilings divided between labor,
industrial ownership and the public
in the form of lower prices-with
major part of the saving going
toward reduction in price-our in
f1ationary spiral would soon be put
in reverse
Mr.. GoSs' said the interests of
the public would be served if some
method of economic regulation such
as this should be adopted, rather
than expending so much effort to
regulate monopoly and prof1teering
through punitive measures"
Matthew WoIl, an AFL vice presi-
dent, expounded his organiza ton s
views. He said:
The AFL is convinced that the
feast and famine policy of American
industry, which in general has al
lowed prices and profits to climb to
such unprecedented heights that
consumer buying power is danger
ously tagging, will inevitably lead
to economic recession unless correc-
tive action is taken Immediately"
Need for Lower Food Prices.
Mr.. Woll said the AFL believes
"that moderate increases In wages
In 1947, accompanied by a price re-
duction policy. industry by industry.
according to their ability to lower
prices, will assure continuing pros
perity with high levels of production
and employment
Declaring food prices must come
down. Mr.. Woll added that if they
continue upward, rank and file
worker pressure for wage increases
will be inevitable
He said wage increases this spring
shave not been accompanied by price
increases" and have served to take
I'D the slack and Offset the danger
of sharp collapse Of economic
activity
The result, Mr. Woll said, has
been healthy for the economy as a
whole"
Mr.. Goss said prices for some foods
are too high and others too low,
mainly because of what he called
the inadeouacy of the present parity
formula-the standard used to gauge
f4y y,rinoc fo tr In 10
lation to each other and prices for
other commodities.
Hope to Avoid Rationing.
Mr.. Goss declared the present
formula is little better than none
at all and because of its many in
adeouacies is resulting in (the Gov
ernmen0 supporting prices OF some
crops at far above an equitable level
without affording any protection
at all to other crops" He did not
name any specific foods or crops
The grange official said food ra-
tioning may have to oe restored I'll
we have a shortage such that fooc
cannot be bought at prices which
will promote reasonably maximum
production"
we believe, however" he added
"that if the Government, in con-
nection with its purchases for mill,
tarv forces and world needs, Woulo
pursue a sound policy in selecting
foods in greatest abundance ane
avoid excessive use of foods in short
supply. rationing probably would bt
avoided"
Mr.. Goss said price controls shoulc
be restored only as last resort tt
prevent profiteering."