The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-12-14
PRESSURE MOUNTING FOR PRICE
CURBS ON HEELS OF AUTO BOOST

Washington (LPA)-By the end
of December's first week, the pres
sure for price controls was mount
ing toward a climax. There was
also pressure for wage controls, but
it was more partisan, seemed less
intense.
Apparently one thing holding
controls back was the sheer vast
ness of the problem of putting
them on. Nevertheless, the capital
buzzed with rumors that President
Truman was about to declare a ma
tional emergency, impose controls
Immediately.
A White House spokesman adj
mitted there had been considerable
talk of such action but instead no
decision had been made. The state
ment did nothing to quiet specula-
ton, so great was the pressure.
Closest thing to action was a re-
quest by Economic Stabilizer Alan
Valentine that General Motors and
Ford suspend at least temporarily
the price increases on automobiles
announced earlier in the week.
Hardly had Valentine sent his re-
quest than Chevrolet, a GIN sub
sidiary, boosted its 1851 cars by
$50 to $50.
However, Ford, GIN, and ten
other motor-makers were expected
to meet with Valentine at the lat
ter's invitation in Washington to
air the whole price question. Val
entine indicated he would order a
roll-back of auto prices if he be-
lieved such a move necessary. And
some thought he might take action
in steel.
At first there was no official
comment from the automobile in
dustry, although in Detroit an un
identified company official was
quoted as saying: "Why do they
start on us We raised prices about
five percent. What about steel,
rubber, cooper, nickel, and other
industries? Their prices forced US
to raise prices"
Finally, T. H. Heating, Chevrolet
general manager and GIN vice-pres-
ident, declared that the price boosts
came in the wake of three price re-
ductions in 20 months.
1--WE have held our present net
increase to a minimum made pos
sible only by improved efficiency
and substantial investments for
new machinery and facilities" he
The automobile situation high
lighted the weakness of voluntary
controls" in an economy rooted in
"acquisitiveness," many felt. Said
elder statesman Bernard Baruch
There is nothing to voluntary con-
trolls except profiteering and des-
truction when war faces u.s." In a
telegram to Sen. Burnet Maybank
ID, SCI, chairman of the Senate
committee, Baruch asked.
Don't you think we have had
enough of trying the same expert
ments that have failed?"
Last summer when the Defense
Act was first being con-
sidered, Baruch urged all-out con-
trolls to meet the threat Of infla
ton and war.
Meanwhile, Economic Stabiliza-
tion chief Valentine, flanked by
wage stabilizer Cyrus Ching and
price stabilizer Michael Disable
held a press conference the morn-
ing of Dec. 8, but again no con-
elusive statement was made. Di-
Sale insisted he still had high
hopes that voluntary restraints
would workout nobody believed
him. And Disable himself admitted
that control orders were in pre-
paration but insisted it would take
so to 80 days to set up enforce
ment machinery. The pipe-puffing
Ching said "selective" wage con-
trolls would be tried along with sell
ective price controls, but added
they might hot work.
On the credit front, Chairman
Thomas B. McCabe of the Federal
40