Evening star., 1949-02-16
Initiation Control Bill
Hearings Predicted
In } or 4 Weeks
By ChoImers M. Roberts

BY Choimers M. Roberts
The House Banking Committee
probably will open hearings or
the administrations standby
price-wage control bill, introduced
yesterday, in about three or foul
weeks" Chairman Spence said TO-
day.
- We're certainly going to have
E hearings on it," Mr.. Spence said
x He added, however, many com.
=. mittee members are anxious II
learn more about the course q
imitation this spring before taking
action.
Republicans. however. imme.
diately jumped on the anti-in inf1a-
ton measure, first outlined thi.
year in President Truman'S State
of the Union speech. The ranking
Republican on the House Banking
Committee. Representative Vol.
colt of Michigan. said he wa!
against peacetime controls, add.
ing they are not consistent with
the American way"
Strong Opposition Expected.
The measure, covering the three
most controversial points in Mr.
Trumans anti-inflation program
is certain to run into stiff oppo-
sition on both sides of the Capt.
tol, especially if current price dips
continue.
Covered are Wage-price con-
Z trolls, mandatory ALLEGATION au-
thority and the highly contro-
versial authority to build such
industrial plants as those for pro-
duction of steel. The bill definitely
gives the administration authority
to erect such plants, although
they may be operated only by
private firms under Government
contract.
Secretary of Agriculture Bran
man,. acting as co-ordinator of
the Presidents economic program,
In statement released with the
bill, described this capacity ex-
pansion" authority as follows:
whenever necessary in order
to help achieve the quantity goals
established >. the President may
make loans for the expansion of
capacity and production. These
loans may be made to private
industry or to State development
agencies. He may reduce or defer
interest payments and defer prin-
cipal payments if unfavorable
economic conditions make the
borrower unable to pay.
Last Resort Move.
I'm the event it is necessary
in order to help achieve the
: quantity goals the President is
authorized, as what might be
!: called a last resort, by or under
contract with private enterprise,
to construct new plant facilities
or to expand or to rehabilitate
existing plant facilities for the
expansion of capacity or produc-
ton. ~ =. =
sThe plants. may be operated
only privately under Government
contract"
OF the remaining five of Mr.
Truman's eight points, one, con-
tlnuation of export controls: has
passed the Senate and will be con-
sidered this week by the House.
Another, rent control extension,
Is now before a House committee.
The three others, yet to be pre-
sented by the administration In
bill form, are continued bank and
consumer credit controls, contln-
ued controls over transportation
and authority to regulate specula-
ton on the commodity exchanges.
The bill introduced yesterday
covers these points:
Price controls: Power to set
maximum prices on commodities
where price increases would mate
rally affect the cost of living, cost
of industrial or agricultural pro-
duction or of national defense or
foreign aid. Such power would be
invoked, the bill states, when other
means are insufficient to stop a
price rise.
Wage controls: When a maxi
mum price has been set under the
above powers, an employer may
raise wages except that for SIX
months he cannot use the In
creased wages as a basis for in
creased prices unless a wage board
ito be established) finds it neces-
sary. Reasons for such necessity
would be either to compensate to1
increases in the cost of living, to
correct substandards of living, OF
to maintain essential production
at levels certified by the President
Industrial capacity expansion:
Power for the Government to
make loans for needed expansion
of industrial capacity, such as
steel plants. Where other means
fail. the Government "as last
resort" could build the facilities
Secretary Brannan said such
plants. however, may only be
operated privately under Govern
ment contract"
Allegations: Mandatory power
to channel scarce materials ano
facilities into essential production
and use, to relieve or prevent
shortages and maldistribution af'
fecting essential domestic re-
quirements, the cost of living, ma
tional security or the carrying ou'
of our foreign policy.
Miss Bentley Appears
Before Grand Jury Agoi'