Evening star., 1949-02-08
Senate Inquiry
Into High Retail
Prices Ordered
Banking Committee
May Begin Public
Hearings Next Week
BY the Associated Press

~ 'he NssSS'dtcd Ftcss
The Senate Banking Committee
decided unanimously today to in
vestigate what is keeping retail
and consumer prices so high.
Chairman Maybank said public
hearings may start next week.
Factual data developed by the
study. he added, could be used
later in passing on President Tru-
mans request for standby Gov
eminent controls as part of the
administrations n limitation
program.
The committee acted while Sec
retary of Agriculture Brannan was
telling Congress that the Nations
biggest task now is setting up an
economic program that will con-
quer "the evil of oom-and-bust."
The Secretary said the fate OF
democracy rests on the success OF
the United States in maintaining
economic stability.
Will Not Be Witch Hunt.
"This is not going to be witch
hunt" Senator Maybank told re-
porters after a closed Banking
Committee session. 1--WE are not
trying to jump on anybody. But
we want to educate the public and
ourselves on the facts
Senator Maybank noted that
the general cost of living had
dropped only slightly recently
while prices of some farm prod
ucts and manufactured goods
went down one-half and even two
thirds.
"We want to find out why" he
added.
The committee approved res
olution by Senator Maybank call
ing for a full and complete study
and Investigation of prices of agri-
cultural and other commodities
with a view to ascertaining the
causes for unreasonably large
spreads between prices received
by farmers, manufacturers and
other producers and prices paid
by ultimate consumers"
Must Report by June 30.
The report must be made to the
Senate lat the earliest practicable
date but not later than June 80.
1949.'
The group asked $4,000 funds
for the probe, but Senator May
bank said the committee staff can
start action Immediately with
$4,000 now available.
| He said the Agriculture, Com
merce and Justice Departments
and other Government agencies
will be asked to aid in the price
study.
Senator Maybank pointed par
ticularly to skidding farm prices
for wheat, cotton, milk and other
products, saying consumer prices
of bread, butter and other prod
ucts remain high.
1--WE want to find out what
causes these big spreads and what
is wrong with our distribution
system" he said.
Cut in Soap Price Cited.
Senator Robertson. Democrat,
of Virginia. told reporters the
hearings alone might force down
some retail prices. He noted that
last week, after the COMMITTEES
protested low prices paid farmers
and producers for fats, oil ana
other products used in soap, that
the three big soap companies cut
their prices per cent.
Mr.. Brannan made no speclf1c
recommendations for congressional
action. but left that task to various
other Government spokesmen VINO
are scheduled to testify.
The administrations program,
he said, is aimed at maintaining
maximum employment, produc-
ton and purchasing power.
Failure to realize this program.
he said. would fulfill the Com
munist prediction that we shall
inevitably fall prey to paralyzing
depression.
Before the hearings began.
Committee Chairman O'Mahoney
told reporters consumer resistance
to high prices sis beginning to
show itself and he believes the
present economic situation con-
stitute "a warning that Govern
ment should act. instead of drift
jnp"