The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-12-14
WAGE-PRICE CONTROLS NEARER
BUT EXACT FORMULAS IN DOUBT
By CUSHMAN REYNOLDS

By CUSHMAN REYNOLDS
Washington (LPA) - With the
news from the Far East becoming
blacker by the minute, the nations
capital was expecting price and
wage controls at an early date
under the Defense Production Act.
But the exact formulas to be used
were still unknown, as the first
week of December neared an end.
Acting swiftly on Dec. a and 5,
the Senate Banking Committee,
chaired by Sen. Burnet Maybank
| Cd, S. c., approved the appoint
ment Of Alan Valentine as Econ
omic Sterilization Administrator
and Mayor Michael Disable Of
Toledo, Ohio, as Director of Price
Sterilization. Senate confirmation
of Valentine followed Immediately
and no opposition was expected to
Disable.
Valentine will head the Economic
Sterilization Agency with Disable
and Chairman Cyrus Ching of the
Wage Sterilization Board as his
chief assistants in the key war job
of forestalling further initiation.
What the future held for the pro-
gram and its top managers defied
speculation.
The Senate group acted on the
Valentine appointment first. The
former president of the University
of Rochester was confirmed after a
Dec. A hearing in which he said
wages and prices were approaching
a balance, suggesting that con-
trolls were near. However, Valen-
tine refused to propose date.
(Under the Defense Production
Act, President Truman is author
lied to impose controls when he
finds them necessary. According to
the statute, he must call for wage
lids in any industry in which he
calls for price ceilings, but some
labor spokesmen have insisted that
the act permits a degree of flex
ibility, view which Valentine
seemed to reflect. All labor has
urged that wages be allowed to.
reach post Korean price levels be-
fore wage lids are clamped on.)
Valentine said he expected to-
cooperate closely with w. Stuart
Symington, general coordinator of
defense activities, although the law
made the Economic Sterilization
Administrator directly responsible
to the President. Any disputes
would be carried to Truman, Val
entine said, and expressed belief
that the president would rule lin
Symington's favor,
One remark that wouldn't en-
dear Valentine to organized labor
was his open declaration that he|
disapproved of the recent wage|
boost won by the United Steelwork-
ers from the giant US Steel Corp.
He also expressed belief that
credit controls might allow wagel
and price controls to be STAYED off
a little longer
In a brief appearance before thel
Banking Committee Dec 5, thel
plumply diminutive Disable wasl
diplomatic although plainly ner-
vous. However, he clearly indicat-
ed his belief that controls were inl
the offing, although, like Vaen-
tine, he refused to name the dayl
they would be imposed.
First off, he said there must be
more intense effort to usel
rigid" voluntary controls to be set
up in seven economic fields. Thel
seven fields, he told reporters later,
would be durable goods, soft goods,
industrial manufacturing, food and
restaurant, utilities, transportation
and fuel. But he gave the impress
sion under questioning that "volun-
tary" controls won't work, and that
by the time he organizes stair
compulsory price controls will bel
required. He said the "selective"
controls authorized under the De
Tense Production Act might work
in some areas but declared theyl
might start chain reaction"
leading to wholesale controls.
Talking with reporters after the
hearing, Disable admitted that the
price control job might amount tol
political suicide, but laughingly OBJ
served, 81 have only one political
life to give" Both Disable and
Valentine were forced to undergo
good deal of politically inspired
questioning.
--~----------