The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-12-21
General Motors Freezes Sales As
Answer To Price RoIIbuck Order

Washington (LPA) - The flrst
attempt to control prices by gov
ernment order appeared to be a
flat failure as the selected" indus
try rebelled.
On Dec. 16, the Economic Stabil-
ization Agency told the automobile
industry, the greater part of which
had just announced price increases
on its 1851 models, to roll prices
back to Dec. /. Forty-eight hours
later General Motors, the industry's S
giant, retorted by withdrawing
1851 Cadillacs, Pontiacs and Chew
rolets from the market.
The company action followed
protests from both management
and labor that the government was
being discriminatory" by moving
against the auto industry first.
Both were concerned with the eff
feet of the rollback on the "escala-
tor clause" in the company's five
year contract with the United Auto
Workers.
In a letter to the union, GIN
President Charles E. Wilson said
''this sudden and discriminatory"
rollback "placed in jeopardy the
cost-of-living clauses which call for
automatic increases when the Labor
Departments cost-of-living index
goes up. can arbitrary price freeze
would seem Ito require an equal
ly arbitrary wage freeze" Wilson
wrote, complaining that a lid on
new cars wouldn't effect the price
of raw materials which cars are
made of. (GM's Engine Charlie"
Wilson should not be confused with
Charles f. Electric Charlie" Will
son who resigned the presidency of
General Electric to head the new
Office of Defense Mobilization)
UAW President Walter Reuther
protested against what he called
"pinpoint controls" which failed to
get at the roots of the Initiation
airy spiral" However, Reuther had
long been urging that the "selec-
tive controls" authorized by the
Defense Production Act of 1850 be
imposed wherever required.
Should controls on steel, copper
and other raw materials follow the
stymied attempt to control auto
prices it was believed by some that
opposition to control new cars
might largely evaporate. At any
rate, new control orders were ex-
pected
The question Of the escalatOr
clauses was scheduled to be aire6
by Reuther in an appearance be
fore the Wage Sterilization Board.
The JAW leader was expected to
point out that a third Of the ma
tion's workers are covered by cost
of-living contracts, that if prices
are controlled the cost of living
won't rise and that accordingly
there was no reason to tamper with
the clauses. In an earlier exchange
of letters with stabilization chief
Alan Valentine, Reuther had said
that JAW would consider its con
tracts terminated if the clauses
were outlawed.
Until GINS dramatic rejoinder
it was believed that the Economic
Sterilization Agency was about t
announce to both labor and indus.
try that price and wage controls
were virtually in effect and that
"unjustified" increases in Other
fields would be rolled back. Pres
ident Truman himself had said to
the American people Dec. Is;
"The government is starting at
once TO impose price controls upof
"a number of materials and pro
ducts. These will be mainly items
important to defense production
and the cost of living. In those
fields where price control is i'm
posed, the government will also un-
dertake to stabilize wages, as the
law requires.
"In the immediate future, ser